Examining the Digital Products and Technologies Currently Being Used by Commercial Banks in Resource-Constrained Environments: A Case of Uganda (World Journal of Information Systems)

Summary

• Only 39% of the banking population in Uganda actively engages in digital banking services despite electronic banking being introduced in 1997.p.1
• The study surveyed 14 Bank IT Managers and administered questionnaires to 1,512 customers across 48 bank branches in Uganda.p.5
• Customers identified convenience (93%) and time savings (92%) as the primary benefits of digital banking technologies.p.11
• Technical issues (36%), high digital bank charges (33%), and connectivity problems (32%) were highlighted as top moderate challenges by users.p.10
• Customer usage varies across products, with 62% using mobile banking apps often, compared to 38% for internet banking and 36% for digital wallets.p.18

Key insights

1. Electronic banking was first introduced into commercial banking in Uganda in 1997.p.2
2. The rural-urban internet divide is a major barrier to adoption, with 35% of respondents identifying it as a significant challenge.p.11
3. Lack of smartphone access and language barriers were reported as not a challenge by 44% of surveyed respondents.p.11
4. Bank IT managers identified connectivity issues (53%) and security concerns (43%) as their main barriers to effective digital product use.p.12
5. Commercial banks rely primarily on marketing campaigns (93%) to promote digital platforms, while customer referrals account for 50%.p.13
6. None of the studied banks offer digital banking products tailored for physically challenged individuals, who constitute 6% of customer respondents.p.18
7. A lack of product differentiation exists among Ugandan banks, with 93% offering identical core products like mobile apps and internet banking.p.20