The Effect of Digital Banking on the Financial Performance of Commercial Banks in Uganda

Abstract

Digital ibanking isolutions, ialso iknown ias imulti-channel isolutions, iare ielective itechniques ithat ia iclient ican iuse ito iacquire ispecific ihelp ifrom ihis/her iassociation.Financial iinnovation ioccurs iin ithe iemergence iof ilending iplatforms ithat imediate iinformation iflows ifrom itraditional ibanking isystems ito iunbanked iborrowers iand ialso iassist iin icredit irisk-sharing ianalyses. iThe istudy iwill iemploy ia idescriptive iresearch idesign. iAccording ito iLavrakas i(2008), ia idissimilar ireport iconfiguration iis ia inon-exploratory iexamination iplan ithat icrosses inumerous idisciplines ito icollect ia ilarge iamount iof iresearch idata ifrom ian iagent itest iand iinspect iit ifrom ithe iinvestigation ipopulation. iThe iresearch iwill irely ion isecondary idata, idigital ibanking idata iin iUganda, iincluding ithree idifferent itypes iof idigital ibanking iservices: iagency ibanking, iinternet ibanking, iand imobile ibanking. iData iwill ibe icollected ifrom i2016 ito i2020 ion idigital ibanking iservices iand ifinancial iperformance iin ithe iAnnual iManagement i& iAccount iSupervisor iReports iof ithe iBank iof iUganda.The ioutcome icomprised iof i26 ibanks iin iUganda. iThe imain idata igathering iwas ithe iuse iof ia iclosed-end iquestionnaire ias ia idata icollecting imethod. iTo iclarify imonetary iexecution iand icomputerized ibanking ireception, ithe idispersion iof idevelopment ihypothesis, ithe ifinancial iinnovations itheory, iand ithe iinnovation iacknowledgement imodel iwill iall ibe iapplied. iThe iresearch iused iboth idescriptive iand iinferential istatistics iincluding icorrelation iand imultiple ilinear iregression ianalyses. iThe iresults iof ithe iresearch ishowed ithe ieffectof idigital ibanking ion ithe ifinancial iperformance iof icommercial ibanks iin iUganda ihighly ishown. Further istudies ishowed ithat inone iof ithe icharacteristics iof ifinancial iinnovation iwere isubstantially ilinked iwith ifinancial iperfomance. iPolicy isuggestions iare imade ito igovernment iofficials iand ipolicy-makers, iin iparticular iregulators, ithe iCentral iBank iof iUganda i(CBU) iand ithe iSacco iCorporations iRegulatory iAuthority iof iuganda i(SASRA) iand ito ithe iTreasury, inot ito iconcentrate ilargely ion ifinancial iinnovation iwhile iseeking ito ienhance iaccess ito iloans, ito. iThe ivalues ito ibe iused iin ithe iresearch iare iagency ibanking, iinternet ibanking, iand imobile ibanking iwhich ihave ia ihuge iinfluence ion ifinancial iperformance iwhich iis ias ia iresult iof itechnology. iThe ithree ivariables iare ia iresult iof itechnological iinnovations iin ibanking iand ifinancial iinclusions.