Electronic fraud and performance of retail banking in Uganda: A case study of Centenary bank limited Mapeera house.

Abstract

The purpose of the study was to investigate the influence of Electronic Fraud and Performance in Retail banking in Uganda, a case of Centenary Bank Uganda Limited. The study was guided by the following specific objectives; the effect of ATM fraud on retail banking performance; The effect of internet fraud on retail banking performance; and The effect of mobile fraud on retail banking performance at Centenary bank. Using a phenomenological approach, a highly descriptive and explanatory research was carried out and responses were collected from 179 respondents with the help of self-administered questionnaires as well as face to face interviews. Data on the population sample was determined using Krejie and Morgan’s table characteristics and objectives was analyzed according to frequency tabulations and Pearson correlation matrix respectively and regression analysis was used to examine the predictive power of electronic fraud on retail banking performance. From the findings: ATM fraud with R square = .384, internet fraud with R square = .320 and mobile fraud with R square = .331 had positive significant relationships on retail banking performance showing that electronic fraud had a positive and significant effect on the retail banking performance of Centenary bank. Results from regression analysis showed ATM fraud, internet fraud and mobile fraud were strong predictors of retail banking performance with Adjusted R Square = .351). In conclusion Electronic fraud has a positive significant relationship with centenary bank The study recommended that; the management of the bank should develop a very strong risk management team as well as security systems coupled with effective strategies inclined to retail banking performance enhancement. The strategies will help foster proper management and control of electronic fraud which will in turn enhance efficiency, growth in customer base and brand equity.