Influence of Information Technology on the Performance of Financial Institutions in Ntungamo: A Case Study of Centenary Bank Ntungamo Branch.
The study assessed the influence of information technology on the performance of financial institutions in Ntungamo. A case study of Centenary Bank Ntungamo branch and the objectives of the study were to establish the role of Information Technology in financial institutions in Ntungamo District, to...
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| Format: | Thesis |
| Language: | English |
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Kabale University
2024
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.12493/2549 |
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| Summary: | The study assessed the influence of information technology on the performance of financial institutions in Ntungamo. A case study of Centenary Bank Ntungamo branch and the objectives of the study were to establish the role of Information Technology in financial institutions in Ntungamo District, to identify challenges faced by financial institutions in using information technology Centenary Bank Ntungamo District and to establish the relationship between information technology and the performance of financial institutions in Uganda. This study adopted a descriptive research design and the population of study consisted of 100 respondents. A simple random sampling technique was applied to select a sample size of 78 financial institutions. The study applied primary data using questionnaires and secondary data collected from the respective institution’s financial statements and summaries at the Centenary Bank Ntungamo branch. Editing, coding, classifying, and tabulation are the processing steps that were used to process data for better and more efficient analysis. The study also revealed that the adoption of Internet banking had improved cost efficiency in the institutions, improved customer relationship management in the bank, improved customer convenience, and reduced the institution's operating expenses. The adoption of ATM technology has improved cost efficiency in the institutions, improved fraud risk management in the bank, and improved new customer enrolment in the institutions. The study concludes that the majority of the financial institutions in the Ntungamo district have invested their resources in new products and technology innovations such as mobile banking, electronic funds transfer, internet banking, and automated teller machines. These aspects of ICT have helped institutions in carrying out business activities more effectively and efficiently and information technology has emerged as a strategic resource for achieving higher efficiency, control of operations, and reduction of cost by replacing paper-based and labor-intensive methods with automated processes thus leading to higher productivity and profitability. The study recommends that financial institutions should integrate the use of the Internet for exploring and finding new customers, enhancing the speed of communication, developing new products, collecting and managing information, generating a wide range of product ideas from a wider range of sources, accessing documents and sharing technical information. |
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