HOW MOBILE BANKING CONTRIBUTES TO PERFORMANCE OF FINANCIAL INSTITUTIONS, A CASE STUDY OF DFCU BANK WANDEGEYA, KAMPALA UGANDA. A CROSS-SECTIONAL STUDY.

Abstract

Objective

The study aimed at assessing how mobile banking contributes to the performance of financial institutions, a case study of DFCU Bank Wandegeya, Kampala Uganda.

 Methodology

The study used a cross-sectional study design and was carried out from DFCU bank, Wandegeya Branch. The study was carried out for a period of Four months i.e. from September 2022 to December 2022. Sample Size of (171) Of DFCU Bank Officers and Customers/Clients. Both secondary and primary data were used for the study and were analyzed automatically using SPSS.

Results

Findings reveal that the number of females(52.6%) who participated in the survey was more than the males 81(47.4%) and the highest number 75(43.9%) of the respondents were single. 85(49.7%) of the respondents agreed that mobile banking has improved customer satisfaction, 66(38.6%) strongly agree and 20(11.7%) undecided. It is indicated that there is a strong relationship between mobile banking and the profitability of DFCU -bank. This is indicated by positive results of Pearson Correlation, where r = 0.874.

Conclusion

Mobile banking has improved the bank-customer relationship by rendering effective services throughout the week customers can now have access to their account outside working hours to make withdrawals to attend to their needs.

Recommendation

We suggest that the central bank removes limits on the cash withdrawn and transfers which blocks levels of transactions by customers

Regulatory authorities like the Central Bank of Uganda must stipulate standards for the banks to follow to avoid making the Ugandan Commerce Sector a dumping ground for outdated technological infrastructures.

Government Policy should guide against Money laundering, fraud, and security risks posed by net commerce is inevitable.