Research on Influencing Factors of Online Banking Acceptance: A Case Study of Commercial Banks in Kampala

The study evaluates the effect of customer attitude (influenced by perceived security, perceived usefulness and perceived ease of use), client knowledge and interest and quality of online banking service and the relationship of these factors with online banking acceptance in commercial banks in Kampala.

This study adopted a mixed method of data collection to achieve the study’s objectives. A sample of respondents was taken from 6 commercial banks in Uganda including; ABSA Bank, Centenary Bank, Stanbic Bank, Standard Chartered Bank, Pride Microfinance Banks and Finca Bank and 200 people participated as respondents. Both purposive and simple random sampling methods were used to select participants. The study used structural equation model analytical tool to observe the correlations between the variables. The findings affirmed that online banking uptake in Uganda is significantly influenced by consumer attitudes, client knowledge and interest as well as quality of online banking service. The findings of the study will help management of organisations like commercial banks regulators to review the issues that need to be addressed in order to increase the acceptance of online banking, It will help in modernizing the operation of the Central bank to support automated clearing service and update supervisory and regulatory rules for absorbing ICT-based banking and also it will help commercial banks in creating an awareness campaign through workshops and seminars on the importance and business value of online banking in commercial banks.