Contributing Factors to Online Banking Adoption Among Customers in Kampala, Uganda

Abstract

The advancement of technology has greatly impacted the nature of businesses pushing most from the traditional brick and wall to a virtual market. The Covid-19 strains in the past year have also immensely cut of human physical contact and spanned the conventional monetary exchange to a cashless platform. However, surveys still register that several Ugandans access bank services at the banking hall instead of using the internet that has been termed as more convenient, easy to use and widely accessible. This study therefore aimed at providing a deeper understanding of factors that contribute to the adoption of online banking in Kampala-Uganda. More specifically, the study explores perceived risk, perceived ease of use, perceived usefulness mediated by customer satisfaction as the contributing factors to online banking. into The study adopted the Technology Adoption Model (TAM) to develop the conceptual framework used. A cross sectional research design was employed to achieve the study aims and objectives together with a quantitative approach that used a survey questionnaire to collect data from 300 bank customers from Standard chartered, Centenary and Stanbic banks. The results revealed that perceived ease of use and perceived usefulness positively affected adoption of mobile banking and therefore should guide online adoption applications. However, the increase in perceived risks was found to not necessarily lead to a decline in the levels of adoption. This study therefore adds to the scant literature in the area of online banking especially in emerging countries like Uganda.