Mobile money services and financial performance of commercial banks in Uganda: A case study of Stanbic bank city branch Kampala city

Abstract

The main aim of this study was to examine the influence of Mobile Money Services and Financial Performance of Commercial Banks in Uganda, A Case Study of Stanbic Bank City Branch Kampala City. The objectives of the study were to; To establish the extent to which mobile banking services influences financial performance of Stanbic Bank city Branch, Kampala, To examine the influence of mobile payment services on financial performance of Stanbic Bank city Branch, To find out the relationship between mobile transfer services and financial performance of Stanbic Bank city Branch. The study adopted both descriptive, cross-sectional survey and explanatory research designs with both qualitative and quantitative methods of data collection and was carried out at Stanbic bank city branch. The study population was 52 out of which a sample of 50 respondents was selected as study sample and it was randomly and purposively selected. Questionnaires and interviews were used as data collection methods. The results of the study revealed there is moderate positive relationship between Mobile banking services and financial performance in Stanbic bank city branch Kampala city with a correlation coefficient, p=0.347 and =0.05 since p>0.01, there is indeed a moderate relationship between mobile payment services and financial performance with coefficient, p=0.26 and r=0.05. Since p>0.05 and There is indeed a strong positive relationship between mobile transfer services and financial performance with correlation coefficient, p=0.49 and p=0.05. Since p> 0.05. The conclusion is that mobile money services have prompted Stanbic bank city branch Kampala city to change their strategies to enable them hold their grounds by lowering interest rates, reducing minimum account balance and others even adopting no account balance thus in turn reversing the profitability, liquidity and return on equity of Stanbic bank city branch Kampala city. Therefore, M-Banking and mobile phone business contribute to economic development through creating opportunities for income generation. The objectives one was achieved and the research question where answered. The researcher recommended that is about getting banking services to the unbanked population, who do not have bank access or bank accounts and those who are at the bottom of the economic pyramid, often living in remote areas. Therefore, Stanbic bank city branch Kampala city should allow customers with busy lives to conveniently do their banking services using their phones anytime.