The adoption of mobile banking in Uganda, a case study of Bank of Baroda (U) Ltd.

Abstract

The major aim of his study was to empirically explore the adoption of mobile banking in Uganda using a case study of Bank of Baroda (U) Ltd. The study used primary data collected by the researcher from the customers of Bank of Baroda, RSB. The data was collected using a structured questionnaire self-administered 248 respondents. The researcher generated various statistics such as frequency, percentages and regression analysis models using SPSS Version 11. The dimension of the dependent variable of the study is the extent of adoption of mobile banking services among bank customers of commercial banks in Uganda. The independent variables include social, economical and technological factors which affect mobile banking adoption. The findings of the study indicate that customers’ characteristics such as age, gender, education levels and income levels have an effect on the adoption levels of mobile banking. The results also showed that customers mostly used mobile banking to transfer funds from their bank accounts to mobile money and to purchase airtime which accounts for onward transfer to other people as intended. It was found out that among the factors identified as influencing or affecting mobile banking, convenience (F1) was rated as the most important factor with 69.9 percent of the respondents rating it as very important, followed by knowledge of the services (F7) and handset operability (F6). These were established by frequencies and percentages. This study has unveiled important information regarding adoption of mobile banking services, the services which customers feel add value to them, those which they feel are not important and the challenges they face when using or when making the decision to sign up for mobile banking. Basing on the findings of the study, the researcher recommends that banks and other service providers re-evaluate the mobile banking services and embark on a fact finding mission to find out from their customers the services which they would like to access through mobile banking. The researcher also recommends that further research could be carried out on how mobile banking contributes to paperless and branchless banking.