Factors Affecting Customer Utilisation of Internet Banking: A Case Study of Stanbic Bank, Uganda

Abstract

The purpose of the study was to examine the factors affecting customer utilization of internet banking in Stanbic bank in Uganda. A cross sectional survey design with a population of 24,220 respondents from which a sample of 134 was drawn was undertaken. Self-administered questionnaires were used to collect responses. Measurement of the relationships of the study were done and subjected to rigorous data processing and analysis using the relevant statistical computer software packages. Findings indicated that there were positive and significant relationships between internet banking customer utilization of internet banking and demographic factors with exception of gender which had no association with customer utilization of internet banking. Other findings such as level of awareness, level of trust were also found to be significantly associated with customer utilization of internet banking. In conclusion, the findings revealed that all the independent variables with exception of gender were significant predictors of customer utilization of internet banking in Stanbic bank. The study recommends that, awareness of internet banking services is essential in early stages of utilization of internet banking. Effective presentations using all forms of media advertising such as leaflets, brochures, web pages, etc., should be used to introduce the services to a wider audience and educate potential customers about benefits of internet banking. Furthermore, there is also need to emphasize the point of education in utilization of internet baking. The study findings revealed a significant relationship between education level and customer utilization of internet banking and therefore customers are encouraged to get more education and knowledge through various training sessions that may come up. Lastly but not least, the model should be used to study other sector other than the financial sector.