The relationship between e-banking and the performance of Post bank Uganda. A case study of Post bank Soroti branch

Abstract

The study conducted was about the relationship between and the performance of Post Bank Uganda, a case study of Post Bank Uganda, Soroti branch was used. The objectives of the study included; to discover how E-banking impacts on the performance of Post Bank in Uganda, to identify challenges faced by Post Bank Uganda in relation to E-Banking and to determine strategies used by Post Bank to resolve E-banking issues. The three objectives were in line with the broad objective of the study. A sample of 60 was considered, 30 of them were staff of Post Bank Uganda and 30 were customers who were using the E-banking services in Post Bank. The respondents were approached 6th and 7th of May, 2016 and they were randomly selected to give responses to the questionnaires and interviews. Both primary and secondary sources of data were used. Primary sources included the responses from the staff and customers of the Soroti branch. Secondary data was obtained from news papers, journals, magazines and the internet (the Post Bank website). The results indicate that E-banking has a great impact on the performance of Post Bank Uganda and its customers at large for example; E-banking enables cost savings, reaching new segments of the population, efficiency, enhancement of the bank‘s reputation and better customer service and satisfaction. There are also challenges that were found for example; skilled managers and requisite tools on end users and client systems, high charge or cost for the e-payment terminals and fraud from the staff and customers are the main challenges faced by the bank towards promoting E-banking. With the challenges noted above, there possible solutions that have been put in place like; efforts should be done in provision of infrastructure and skilled man power, banking legislation should set out standard charges for e-payment services (Littler, 2006). In conclusion, E-banking is of great importance to the bank and it has positively affected their performance through, increasing the number of customers being served in a given period of time and accurate information which is used for effective decision making at the bank.