MJAMR

Electronic Banking and its Impact on Financial Performance: An Empirical Evidence of Centenary Bank

Kaziro Nicholas, Irumba Alex


Abstract

The proliferation of electronic and digital banking technologies has significantly transformed service delivery in the financial sector globally. However, empirical studies investigating impacts on specific banks in developing country contexts remain limited. This study examined the effect of electronic banking channels on key performance indicators of Centenary Bank in Uganda using time series data from 2007 to 2021. Multiple regression analysis was conducted using SPSS and STATA to analyze relationships while controlling for macroeconomic influences. The findings revealed that increased use of mobile and internet banking significantly raised the bank's profits, deposits and loans portfolio. However, ATM transactions had an insignificant effect. Additionally, GDP growth and inflation positively influenced bank performance. The Pearson correlation coefficient between ATM transactions and financial performance was 0.595, indicating a moderately strong positive correlation between these two variables. This suggested that as the volume of ATM transactions increased, there tends to be a corresponding improvement in financial performance among the entities examined. The conclusions drawn were that electronic delivery platforms enhance Centenary Bank's commercial viability. Recommendations for continued digitization to optimize service provision and competitiveness are provided.

Keywords

Mobile Banking Internet Banking ATM Transactions and Financial Performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kaziro Nicholas & Irumba Alex (2024). Electronic Banking and its Impact on Financial Performance: An Empirical Evidence of Centenary Bank. Metropolitan Journal of Academic Multidisciplinary Research, 3(4). https://journals.miu.ac.ug/pages/article.php?article_id=1114

More in This Issue

View full issue →
31
Teachers’ Expectations And Students’ Achievements At Rwantsinga High School, Rubaya Sub-County Mbarara City
Ahereza Grace, Okee Jill Margaret
Teachers Expectations Students and Achievements
32
The Impact Of Computer Graphics And The Evolution Of Industrial Art Of Saddam Graphics
Sabiiti Pascal, Nkwasiibwe Kenneth
Computer Graphics Evolution Industrial Art and Saddam Graphics
34
Uchanganuzi Wa Umilisi Wa Kiisimu Wa Wanafunzi Wa Lugha Ya Kiswahili Katika Chuo Kikuu Cha Kimataifa Metropolitan
Nuwagaba Medad, Mukoyani Geofrey
Uchanganuzi Wanafunzi Lugha ya Kiswahili Utafiti and Mikakati
35
Urbanization And Its Effects On Centers And Communities: A Case Study Of Mbarara City
Naijuka Edwin, Mayaja Moses
Urbanization Centers And Communities