Journal:
Metropolitan Journal of Science and Technology
(MJST)
Volume/Issue:
Volume 4 -
Issue 1
Published:
01 Jan 1970
Abstract
The study examined the effect of Internet banking on transaction efficiency in Uganda, focusing on Entebbe Municipality, Wakiso District. A cross-sectional research design was adopted, using a mixed-methods approach to collect both quantitative and qualitative data. The study population comprised administrators, financial and procurement officers, e-payment service providers, transaction processing staff, and e-payment system users, totaling 333 respondents. A sample of 244 respondents was selected using purposive and simple random sampling techniques. Data were collected through structured questionnaires, semi-structured interviews, and document review, and analyzed using SPSS. Descriptive statistics summarized the data, while regression analysis examined the relationship between Internet banking usage and transaction efficiency. The results indicated a strong positive relationship between Internet banking and transaction efficiency, with a correlation coefficient of 0.758 and a coefficient of determination (R²) of 0.574. Regression analysis revealed that Internet banking significantly influenced transaction efficiency (B = 0.786, t = 18.057, p < 0.05), implying that a unit increase in Internet banking usage improved transaction efficiency by 0.786 units. The findings confirmed that Internet banking substantially enhanced the speed, accuracy, and overall effectiveness of financial transactions. The study concluded that Internet banking played a significant role in improving transaction efficiency in Entebbe Municipality. It was recommended that banks and policymakers promote wider adoption of Internet banking by improving internet infrastructure, enhancing system reliability, providing user training, and ensuring secure, accessible online platforms.
Keywords
Internet banking, transaction efficiency, e-payments, Wakiso District