Factors affecting adoption of mobile banking in Uganda: A case study of Stanbic Bank, Makerere University Branch

Abstract

The continuous expansion of technological innovations especially in the banking sector has stirred competition which has changed the way businesses operate resulting in the introduction of mobile banking in Uganda. This study was conducted in order to analyze the factors that affect the adoption of mobile banking at Stanbic bank, Makerere university branch in Uganda. A questionnaire was developed and then distributed to customers of major mobile banking service providers at Stanbic bank, Makerere university branch in Uganda. Using primary data collection method, from the 150 questionnaires that were distributed 105 questionnaires was successfully returned but only 95 were useable for analysis yielding a 62.7% response rate. After gathering and entering the data in SPSS the results were analyzed using multiple regression analysis. Each variable was measured using 5-point Likert-scale. The results suggested that perceived risk, perceived cost and perceived ease of use are the determinant factors that affect consumer’s adoption decisions. It’s been recommended that Stanbic bank Uganda should invest massively in mobile banking and other information technology innovations in order to further promote efficient service delivery and increase adoption of mobile banking services.