Mobile Banking on the Financial Performance of Budadiri Microfinance Centre Limited, Sironko Branch

This research was undertaken to present empirical findings on how electronic banking affects the financial performance of commercial banks in Uganda, using Budadiri Microfinance Centre Limited, Sironko branch, as a case study. The purpose was to identify potential remedies to the financial challenges encountered by the branch. Rapid advances in information and communication technologies have reshaped the banking industry, prompting the uptake of electronic banking services, notably mobile banking. Despite this expansion, empirical studies remain scarce on the impact of electronic banking on commercial banks’ financial results, especially in rural settings like Sironko District, categorised among the hard-to-reach districts in Uganda.  The study’s specific objective was to evaluate the impact of mobile banking on the financial performance of Budadiri Microfinance Centre Sironko branch.  A descriptive, cross-sectional and correlational research design was employed, combining quantitative and qualitative methods. The study population comprised 20 (twenty) staff members, from which a sample of 19 (nineteen) respondents was chosen. The researcher used a mixture of random and purposive sampling techniques. Both primary and secondary data sources were utilised; primary information was gathered through questionnaires, interviews, and observation, while secondary information was drawn from bank reports, financial statements, and relevant literature. Data analysis included descriptive statistics, correlation, and regression techniques. Results indicate that mobile banking exerts a positive and statistically significant impact on financial performance. Consequently, the researcher urges Budadiri Microfinance Centre’s management to continue investing in secure and resilient mobile banking systems, enhance mobile banking functionalities, lower transaction fees, and intensify awareness campaigns to foster uptake, particularly in rural locations like Sironko District.