The Effect of Digital Migration on the Financial Performance of Commercial Banks in Uganda Case Study: Stanbic Bank Masaka
Author: NAMAZZI DOROTHY
Supervisor: Simon Mutattira Peter
This study was carried out to obtain the effect of Digital migration on the financial performance of commercial banks in Uganda a case study of Stanbic bank Masaka Branch which is found in Masaka District, Masaka Municipality. The researcherís major focus was on investigating the effect of digital migration on financial performance of commercial banks in Uganda. This was based on the research objectives and questions. The study was guided by the diffusion of innovation and the Transaction Cost Innovation theories. Descriptive case study research design was used. The design chosen also helped to clearly bring out the relationship between the independent variables (Digital Migration solutions) and the dependent variables financial performance). The study population of the study area was forty (40) employees but the sample size selected wasthirty-five(35). This was sampled using krejciemorgan (1970) table. The data was collected using questionnaires and interviews.
Data was analysed using SPSS, correlation and regression methods. The findings of the research basing on the questionnaires issued and interviews held showed that digital migration solutions have a positive effect on financial performance of commercial banks in Uganda.
The findings showed that customers of the Stanbic bank Masaka branch preferred using digital migration solutions that is ATMs, Mobile banking and Online banking because of the convenience they offer, low transaction costs, they are quicker and efficient. The bank appreciated the digital solutions because operational costs reduced considerably, better customer service, increased ROA, ROE and ROD. The regression method showed a significant relationship between the independent and dependent variables. It was also concluded thatan improvement in the digital migration generally leads to improved financial performance of commercial banks in Uganda.
The recommendation to commercial banks is to create more awareness to the customers about the digital solutions and to give constant training to the employees in case of any system upgrades.