Digital banking adoption on customer satisfaction in financial institutions in Uganda, a case study of equity bank Uganda Entebbe branch.

Abstract

The study examined the impact of digital banking adoption on customer satisfaction in Uganda; it focused on Equity Bank Entebbe Branch. The study was guided by following objectives: examine the extent to which digital security features influences customer satisfaction at the Entebbe branch; to assess how digital banking accessibility affects customer satisfaction at Equity bank, Entebbe; and to evaluate the impact of digital transaction costs on customer satisfaction at equity bank, Entebbe branch. The study involved a case study research strategy involving both quantitative and qualitative data. The sample size was 70 individuals selected from the 85-target population. Cleaned data were analyzed using both statistical and narrative methods. Qualitative data were analyzed using content analysis techniques. The findings show that digital security features positively impact customer satisfaction at Equity Bank, with customers appreciating multi-factor authentication, data encryption, and clear communication about data protection. While most users trust the safety of their digital transactions, some remain uncertain about real-time alerts and overall transaction security. The security features are generally seen as user-friendly without complicating app use. Most respondents find the bank’s digital services highly accessible and convenient, valuing 24/7 availability and easy-to-use USSD services, especially for users with low digital literacy or no smartphones. However, some users are dissatisfied with performance under poor internet connectivity, and few feel fully empowered to manage finances digitally, indicating room for improvement in user confidence. Regarding transaction costs, the majority consider fees affordable and believe low charges encourage digital banking use. Many users desire more zero-cost transactions, but most lack clear awareness of specific fees or comparisons with other banks. Over half feel the charges fairly reflect the service value. The study recommends that Equity Bank should continuously update and enhance its digital security measures. The bank should implement clearer communication strategies regarding data protection and transaction security to improve transparency and user confidence.