UGANDA CHRISTIAN UNIVERSITY SCHOOL OF BUSINESS

TOPIC: ELECTRONIC PAYMENT SYSTEM AND CUSTOMER SATISFACTION

A CASE STUDY OF STANBIC BANK (UGANDA) LIMITED

BY: NABATANZI HEATHER

REG No: KS18B05/503

A RESEARCH PAPER SUBMITTED TO THE SCHOOL OF BUSINESS IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE
DEGREE OF BACHELOR OF BUSINESS AND ADMINISTRATION OF UGANDA
CHRISTIAN UNIVERSITY.

September, 2021

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DECLARATION

As per the university values of integrity and diligence. I have not received any unauthorized
assistance while working on this paper. I declare that the work is authentically mine and to the
best of my knowledge, it contains no traces of plagiarism or any other unethical practices. The
only work used that has already been published by other persons has been purely for reference
purposes.

Signature:

Date: 30/09/2021

NABATANZI HEATHER

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APPROVAL

This paper has been submitted for examination with my approval.

Signature: Date:

Supervisor’s Name:

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ABSTRACT

The study examined the impact of electronic payment system on customer satisfaction in
Uganda. Particularly, the study investigated the extent to which electronic payment systems
such as internet banking, mobile banking, and ATM and POS system influence customer
satisfaction in Uganda using a case study of Stanbic Bank (Uganda) Limited.

From the study, it is seen that the e-payment system promotes service delivery, loyalty and
customer satisfaction. E-payment systems helps to track customers, map out terrains of the
future and chart the most profitable course and also changes the way service providers approach
their customers.

The study mainly used primary and secondary data. Data obtained revealed that epayment
systems have strongly affected customer satisfaction. The study concludes that the easiness,
flexibility, reliability, accessibility, cost effectiveness, safety and security of electronic
payment systems in Uganda have strongly impacted customer satisfaction.

The study suggested that Commercial banks and other financial service providers should
deepen their investment and technical efficiency in internet banking. They should also enhance
the use of mobile banking to increase customer satisfaction. Banking institutions should also
invest in ATMs that are easy to use, allows privacy and security, has affordable charges and
also allows customers to make deposits.

Key words;

Electronic Payment system, Customer Satisfaction.

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TABLE OF CONTENTS
DECLARATION ....................................................................................................................... 2

APPROVAL .............................................................................................................................. 3

ABSTRACT .............................................................................................................................. 4

TABLE OF CONTENTS .......................................................................................................... 5

INTRODUCTION ..................................................................................................................... 6

Problem statement: ................................................................................................................. 8

CONCEPTUAL FRAME WORK: ........................................................................................ 9

LITERATURE REVIEW: ....................................................................................................... 10

Discussion ................................................................................................................................ 13

METHODOLOGY: ................................................................................................................. 15

CASE STUDY:........................................................................................................................ 16

Growth of Stanbic Electronic Payment Systems: .................................................................... 17

Challenges facing Electronic Payment Systems in Stanbic bank: ........................................... 18

The future of electronic payment systems in Stanbic Bank (Uganda) Limited:...................... 19

KEY FINDINGS: .................................................................................................................... 20

Conclusion ............................................................................................................................... 21

Recommendations.................................................................................................................... 21

APPENDIX: DOCUMENT CHECK LIST ............................................................................. 22

REFERENCES: ....................................................................................................................... 24

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INTRODUCTION

The introduction bares the background of the study, objectives of the study, problem statement,
research questions, and scope of the study and the significance of the study.

Background of the study:

The Historical background of Electronic payment systems is that they evolved in 1990 as a
method of trading between a customer and a product or service provider.

The Theoretical background of Electronic payment systems is that the extensive use and
commercialisation of the internet have created a dynamic electronic commerce world. Lee, Yu
and Ku (2001) stated that electronic commerce provides numerous advantages over traditional
commerce as openness, speed, anonymity and global accessibility which simplify life and
increase individuals’ quality of life.

The Conceptual background shows the concepts in the study that is electronic payment and
customer satisfaction. Electronic Payment is a core aspect of global evolution especially in
third world countries. It is also a method of monetary transaction that takes place between
someone buying and selling through technology. Electronic Payment Systems are grouped into
three that is to say traditional monetary transactions, digital money and credit/debit payment
which all help in completing transactions.

Customer satisfaction on the other hand is a dominating factor when it comes to gaining
competitive advantage over other rivals in the same market. It controls the perception of
customers and how they behave when offered a variety of products in the same market.

The Contextual background of Stanbic Bank (Uganda) Limited through its mission is making
a real difference to financial services in Africa and other emerging markets. The bank will
ensure long-term sustainability by harmonising the needs of their customers, people and
shareholders and by being relevant to the societies in which they operate.

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Background of Stanbic Bank Uganda Limited:

Stanbic Bank (Uganda) Limited was founded in Uganda as the National Bank of

India.1 After several name changes, it became Grindlays Bank. In 1991, Standard Bank bought
Grindlays Bank network in Africa. The new owners renamed it Stanbic Bank (Uganda)
Limited.

Stanbic Bank (Uganda) Limited is licensed as a merchant banker, stockbroker, and financial
adviser by the Capital Markets Authority, which licensed the USE in 1997. In 2017 the bank
was awarded a Bancassurance licence from the Insurance Regulatory Authority, authorizing
Stanbic Bank to sell insurance products to its customers and the public.2

In February 2002, Standard Bank acquired 90% shareholding in the Uganda

Commercial Bank, a government-owned retail banking operation with 65 branches.

The new owners merged their new acquisition with their existing Stanbic Bank (Uganda)
Limited to form Uganda's largest commercial bank by assets and branch network. In November
2005, the Government of Uganda divested its ownership in Stanbic Bank (Uganda) by listing
its shares on the USE. Standard Bank also floated 10% of its shareholding at the same time,
reducing their ownership to 80%.

On 19 February 2018, SBU informed its shareholders of the Board of Directors’ decision to re-
organize the company’s corporate structure and operations through the formation of a group
with a holding company to be called ‘Stanbic Uganda Holdings Limited’ owning several
subsidiaries engaged in different lines of businesses including a new banking Subsidiary which
effectively began on 28
November 2018.3

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Problem statement:

Customer satisfaction is one concept that most organisations strive to attain. People today want
goods and services that are going to satisfy them according to the cost to the good and service
they pay. Service providing companies in Uganda for example Stanbic Bank (Uganda) Limited
has exponentially adjusted to the use of electronic payment systems in their service provision
through online banking. Without these adjustments, customer satisfaction may not be attained
since it determines the success or failure of a business. It is important for banks to provide
electronic banking systems to uncover what attributes customers utilized in their assessment of
overall service quality and satisfaction and which attributes are more important (Yang and
Fang, 2004). Therefore, banks need to understand the attributes that customer use to judge
service quality and then enhance service quality.

Objectives of the Study:

• To determine the dimensions of Electronic Payment Systems.

• To examine the factors influencing customer’s satisfaction of Electronic Payment

Systems.
• To establish the relationship between Electronic Payment Systems and Customer
Satisfaction.
• To analyse the level of customer satisfaction towards Stanbic Bank (Uganda) Limited
Electronic Payment System.

Significance of the study:

The study will help the management and other stakeholders of Stanbic Bank (Uganda) Limited
to understand how best they can use Electronic Payment Systems to meet the needs of
customers.

The study will also help the researcher to acquire skills of carrying out research.

The study will provide up to date information for practitioners and students in the retail banking
industry for further research.

The study will also benefit the researchers in the partial fulfilment of the requirements for the
award of a Bachelor of Business and Administration of Uganda Christian University.
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CONCEPTUAL FRAME WORK:

INDEPENDENT VARIABLE

ELECTRONIC PAYMENT SYSTEM

USABILITY

• Ease of use
• Convenience
• Flexibility
• Perceived usefulness

DEPENDENT VARIABLE

TRUST CUSTOMER SATISFACTION

•Quality
• Retention
• Competence • Loyalty
• Efficiency • Commitment
• Honest • Recommendation of
Service

PERCEIVED RISK

• Security
• Reliability
• Privacy
• Performance

The conceptual frame work constructs and statements are adopted from Schmidt and Muller
(1999), Parhonyi et al., (2005) and Kinberg (2002). The study focused on three dimensions of
Electronic payment systems that are trust, usability and perceived risk which are assumed to
have an impact on customer satisfaction.

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LITERATURE REVIEW:

Sumanjeet Singh, emergence of e-commerce has created new financial needs that in many cases
cannot be effectively fulfilled by the traditional payment systems. Recognizing this, virtually
all interested parties are exploring various types of electronic payment system and issues
surrounding electronic payment system and digital currency. Broadly electronic payment
systems can be classified into four categories: Online Credit Card Payment System, Online
Electronic Cash
System, Electronic Cheque System and Smart Cards based Electronic Payment System. Each
payment system has its advantages and disadvantages for the customers and merchants. These
payment systems have numbers of requirements for example; security, acceptability,
convenience, cost, anonymity, control, and traceability. Therefore, instead of focusing on the
technological specifications of various electronic payment systems, the researcher
distinguished electronic payment systems based on what is being transmitted over the network;
and analyse the difference of each electronic payment system by evaluating their requirements,
characteristics and assess the applicability of each system.4

Kevin Foster, Scott Schuh, and Hanbing Zhang (2010) they examined the consumer payment
methods with respect to cash holdings and withdrawals which was decreasing since 2010.There
was an increase in card payment system with respect to 2009 in the year 2010, which resulted
in less usage of paper currency. Since 2010 there was an increase in usage of debit and credit
card compare to cash transaction which slowly took a decline giving rise to prepaid payments.
Singh.A et.al (2012) in their study discussed how secure the internet network should be to make
smooth transaction for all the parties and the merchants. The systems are made in such a way
so that there is no fraudulent activity takes place people can use their card for transaction in a
secure way so that no data is shared. People mostly do digital transactions for e-commerce but
they find internet I not secure to do so. Therefore, some strict protocol should be followed and
managed to make transaction secure and the data is also protected.

Oladejo, Morufu et.al (2012) in their study examined the improvement of e-payment system in
Nigeria. They explored what initiated the people to adopt the Electronic payment system. A
structured questionnaire and some financial statements were collected to analyse the data. The
results were such that when bank adopted Electronic payment system there was a change in the

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performance level of the banks. With the advent of Electronic payment system there was a rise
in usage of ATMs.
Nitsure (2014) in his study highlighted the issues that were being faced or observed in
developing country like India in using the e-payment system which was due to the low spread
of internet and technology. The paper focused on major issues such as security, rules, and many
others. In a country like India there is a high risk where the poor are given a chance to be
informed about such facilities neither given any such information.
Rakesh H M & Ramya T J (2014), in their study analysed the factors that which was resulting
in the adoption of internet banking in our country. It was found out that perceived reliability,
Perceived ease of use and Perceived usefulness were the main reason for the adoption or usage
of internet banking.
Sanghita Roy, Dr. Indrajit Sinha (2014), discussed in their paper that in India there has been a
sudden surge in the usage of digitalised payment. But still there are almost 90% transactions
which are done through paper currency. They had used the TAM (Technology Acceptance
Model) in this study to find out the factors which are strengthening the e-payment system the
factors are innovation, incentives, and legal frame work and customer convenience.
Dennehy & Sammon (2015) has analyzed how in the 21st century the usage of digital payment
has increased over the years. The main focus here was to find out how where will in the digital
payment system in future stand. Many papers have been examined to find out what are the
views regarding the digital payment system. With the passage of time the technology has been
shifting very fast so with the innovation of technology the aim was to make people familiar
with digital payment. The merchants also got a new platform to invest so as to cater the
customers. Data was collected by following empirical method i.e. survey, interviews, etc.
Lastly the study was only focused on Google data base that was a limitation about the study.

Sanaz Zarrin Kafsh (2015) made a study on “Developing Consumer Adoption Model on
Mobile wallets in Canada”, in her study she did convenience sampling from were 530
respondents were selected and there after the Partial least square model was used to test the
data. As per the analysis the result perceived usage, perceived ease of use and perceived
security is related to each for forecasting the adoption of digital payment.
Bezhovski (2016) has examined how internet and e-commerce has opened the gateway for
digital payment system with the increment in technology people are adopting the new means
of payment system and how they will be benefited and is there any pitfall of using it. When e-

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commerce was launched it was a unique way of trading so the digital payment is also a unique
way of transaction which will also emerge as the e- commerce and in near future it will become
the backbone of ecommerce. The future of these digital wallets will depend on the security and
privacy that are provided by the companies as people are highly security concerns any pros and
cons will decide the future of digital wallets. It is not only restricted to make transactions but
it be used for booking airlines, movie tickets. Many offers are provided for making bill
payments or buying any goods using these platforms. As the smart phones has removed many
devices from our daily live and have clubbed in one device only so it is expected that digital
wallet will also do the same which will become substitute for many other things.
Ravi (2017), has examined that India’s two third population are residing rural areas so they
play a very important role in the development of the economy, with the emergence of IT and
Communication it is predicted that rural areas will have 50% of India’s Internet users by
2020.Digital wallets should be used in rural places so that the people know the significance of
using it and what benefit they will be getting by using it. The Government of India has also
taken up the initiative of making rural people aware about Digitization. Adoption of technology
has always been low in India compare to other countries but in case of Digital wallet our
country is going with the pace of other countries to become a cashless economy. As the two
third population of India is in rural part so if the rural people with time adopt the digital payment
system then in the coming years India will become a cashless economy. The government of
India has taken up various initiatives to
make the rural people become familiar with digital wallet. The urban people have adopted the
digital system of payment, now it’s time for the rural people too. If the rural people are made
aware about digitalization soon it will roll out all over India. The best step that the National
Payments Corporation of India has taken is that digital wallet will work on all mobiles with or
without internet.
Singh (2017) in his study showed that how digital payment and digital wallet in India was get
popularized due to demonetization. As there was a tremendous growth in the usage of internet
and the no. of smart phone users were also increasing so people found it convenient to use as
an alternative for cash. In this study he also pointed out that how different digital wallet
companies were having competition to enter and expand the Indian market as it was the best
opportunity for them to establish their company. It was also predicted that in future India will
become a cashless economy and with digitalization people will surely adopt the digital mode

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of payment. ANOVA was used in this study to show that there is no significant variance in the
consumer perception with respect to its demographic factors.
Baghla. A (2018) in his study identified the trends for adopting the digital payment system
India. Further the paper talks about how after demonetization people started to use the digital
platforms for transactions. How the government initiative to make our economy a cashless one
and how consumer will be adopting such system are further discussed. A structured
questionnaire was used to collect data and find out the future of digital payment system in
India.
Pandey and Rathore (2018) in their study discussed the impact of digital payment system. Due
to modernisation and globalisation it was very important for the people to accept the modern
method of payment. The study is based on secondary data and various literatures from past
papers and government data. All data collected has been analysed and used to find the impact
and adoption of digital payments by the people.
Pushpa S. Abbigeri and Rajeshwari M. Shettar (2018) talked about how the Digital India
flagship program attracted large number of people to start using digital wallets, which people
started to use as there was lots of cash back offers and coupons. After the digital India flagship
program, a lot of mobile wallet companies entered India and other methods such as UPI, NEFT
to a surge. The initiative taken by the government and RBI was being accepted by the people
as they were using such methods.
Shivathanu B. (2019) in his study adoption of digital payment system in the era of
demonetization emphasised on how the digital payment system was used by the people or
accepted by the people during demonetization. It was based on a conceptual framework where
the sample size was 766.The data analysed suggested that behavioural intentions and
innovation resistance had an impact on the actual usage.

Discussion

The literature reviewed from various papers suggests that electrical payment is far more
convenient compared to traditional medium of paper currency or physical and face-to-face
transactions. This method of payment is 24/7 available from anywhere. Such payment
transaction can be done by any individual who has internet connection.
As we know how important time is in everyone’s life, so the most important part played by the
electronic payment system is that saves a lot of time and it’s far safer compared to cash
handling. This type of payment helps us to pay the exact amount to the person whom we are

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paying, sometimes we are short of change as well as the person whom we are supposed to pay
so maybe in the long run if that change is not exchanged either of the person is benefiting more
than the other but if electronic payment is used, nothing as such will take place.
So, the paper reviewed is from all across the world where the authors have put their opinion
and most of the paper are analysed through data collected from customers, businessmen,
organisation among others. As per the data collected by the authors, they have analysed the
result and interpreted using various tests. Most of the people suggest that the people are using
and accepting the electronic payment system due to convenience in handling it, some suggest
as they get rewards or cash back, they save time and it’s a faster mode of transaction. It has
also been seen that post demonetization has made a great impact in a country like India where
a huge share of the population has started using the electronic payment system due to shortage
in paper currency and to save time. As we know the government took an initiative to make
India a cashless country where post demonetization should bring some positivity and we can
also see during this crisis that is to say due to Covid-19 we all are making most use of the
electronic payment system, all e-commerce or all online grocery or other necessity online
commerce are not accepting cash, all are accepting prepaid payment which can be done through
various electronic payment systems.

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METHODOLOGY:

This chapter puts an emphasis on the data collection methods I used. I used secondary sources
that is to say case study for data collection. The important sources are case study of Stanbic
Bank (Uganda) Limited. Other sources include newspapers, publications on Electronic
payment systems and other journals. Important information is also got from the internet as a
secondary source. I used the secondary data because data is already available and me as a
researcher does not need to invest in any money, time or effort into the data collection stages.
And due to the COVID-19 pandemic, it does not require movements which may expose one to
the virus. Advantages of Secondary data collection include;

• It is economical.

• It saves efforts and expenses.

• It helps to make primary data collection more specific since with help of secondary
data, we are able to make out what are the gaps and deficiencies and what additional
information needs to be collected.

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CASE STUDY:

CASE NARRATIVE:

Stanbic bank (Uganda) Limited is a commercial bank in Uganda which allows online banking.
This online banking service allows mobile banking, you can make payments for school fees,
taxes, water, electricity, Pay TV bills, check account balances, make transfers from mobile
money to your account and borrow for your needs using your mobile phone wherever you are
24 hours a day. It further allows you to get your real-time balances and statements, make
payments, transfers, pay taxes, utility bills like Umeme, buy airtime, open another account and
manage your money without going into a branch. You can now manage all your personal bank
accounts and beneficiaries from anywhere in the world. All you need is an internet connection.
From the annual report in 2019, Aligned to the bank’s digital strategy, the bank processed over
85% of their transactions on digital channels, growing their active customers on digital by 28%,
and mobile banking transactions by 33%. It continued to renew and upgrade their 153 ATM
fleet and increased on real time cash deposit machines to 21 during the year. This has helped
the bank to improve on service availability and increased their transaction volumes. As a result
of their commitment to customer service and investment in digital banking services that meet
their customer needs, the bank has won several accolades, including:

• Best Digital Brand – Digital Impact Africa Awards 2019

• Best Digital Powered Campaign 2019

• Best Bank in Uganda – Euromoney awards 2019

• Best Bank in Uganda – Global Finance Magazine 2019

Security of the bank’s digital services for customers remains paramount and the bank has
continued to invest significantly in enhancing information technology security features on all
its banking platforms and digital channels. The bank’s commitment is to continue delivering
superior and exceptional digital financial solutions to their customers towards becoming the
leading digital Bank of choice in Uganda.

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How electronic banking has influenced customer satisfaction in Stanbic Bank (Uganda)
Limited:

• It is reliable since one can do transactions at any time.

• It is easy to use since a customer can use their smart phone to access the services.
• It is not time consuming that is to say no making of lines.

STANBIC BANK UGANDA LIMITED:

Background;

Electronic Banking in Stanbic Bank:

Stanbic Bank (Uganda) Limited is one of the 25 licensed commercial banks by Bank of
Uganda. The bank is a majority owned as a subsidiary of Stanbic Africa Holdings Limited. The
bank was founded in Uganda as the National Bank of India in 1906. After several name
changes, it became Grindlays Bank. In 1991, Standard Bank bought the Grindlays Bank
network in Africa. The new owners renamed the bank Stanbic Bank (Uganda) Limited. Stanbic
Bank (Uganda) Limited offers comprehensive electronic banking services via their online
channel, providing a secure, reliable electronic platform catering for the transactional banking
requirements of individuals, corporate and institutional clients.

The evolution of electronic banking in Stanbic bank started with the use of automatic teller
machines (ATMs) in the mid-1990s and with its growth it has included telephone banking,
direct bill payment, electronic fund transfer and online banking.

Growth of Stanbic Electronic Payment Systems:

Without in any way compromising Stanbic Bank (Uganda) Limited focus on risk management
continued to drive growth. Stanbic Bank (Uganda) Limited has invested for the future in all its
client segments and delivery channels which advanced its long-term strategy of positioning
itself as the leading financial services player in Uganda.

During the year (Annual report 2010) the bank invested UGX 24 billion in Information
Technology development, systems support and maintenance. With the growth in its loan book,
the bank invested significant amounts in new systems to improve credit risk management.

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These included the implementation of a new credit scoring system which will both speed up
the credit appraisal process and lead to better decisions. Significant strides were also made in
implementing the requirements of the new credit reference bureau.

The bank also begun implementing a new and improved anti money laundering tool that will
support compliance with regulatory standards.

On the operational front, the SWIFT environment was upgraded to a more user friendly and
robust platform. The feedback from our customers indicates that service in this area has
improved significantly.

Challenges facing Electronic Payment Systems in Stanbic bank:

Banking practices have undergone significant changes since the advent of the Internet.

Banks provide electronic payment services, which are extremely convenient for banking
customers. However, electronic payment also poses some risks to the banks and banking
customers who choose to use it. These risks/ challenges include:

• Regulation and Legalities:

Electronic payment systems make it possible for banks and their customers to do business from
anywhere in the world. This greatly increases the bank's potential client base. Nevertheless,
according to (Andrea Schaechter of All Business), the global approach to banking that
electronic banking permits makes it extremely difficult for regulatory authorities to enforce
finance laws. Additionally, regulations differ from nation to nation and banks are not always
proficient in the financial laws for every nation in which they have business. Schaechter asserts
that this lack of proficiency opens banks and their clients up to law violations and lawsuits.

• Security:

Electronic payment systems increase convenience, but it also opens a bank to security issues.
For example, a criminal might hack into the bank's server in order to acquire bank account data,
or a software glitch might cause the bank to unwittingly distribute personal data to the wrong

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person. Stanbic Bank has to constantly update their software and hardware to make sure that
compatibility issues and increased knowledge of security systems do not increase their security
risks. This can be expensive over time.

• Reputation:

Problems such as governance and security have the potential to make a bank look bad to clients.
Additionally, the more a bank relies on Electronic payment systems, the more the bank may
gain an impersonal feel. Both of these problems may discourage clients from choosing a bank
that relies on electronic payments, regardless of how convenient electronic banking may be.

The future of electronic payment systems in Stanbic Bank (Uganda) Limited:

The immense potential in Electronic payment systems in Stanbic Bank (Uganda) Limited
warrants serious attention from all industry stakeholders. Ethical and legal issues should be
factored in the development of any related ICT strategy, which regulatory authorities (for
example Central banks), should be very familiar with so that the landscape can be a conducive
one to support sustainable growth in all other socio-economic sectors.

Limitations of the study:

• Time allocated to finish this study was not enough, I tried to work harder and follow
the advice of my supervisor so that I do not waste any time.
• Resources needed to complete this research; to type were not enough.

• Identifying and contacting the bank customers were a problem as they are not located
at one place.
• The COVID-19 pandemic has made it hard to go to bank premises since there are a
limited number of people allowed in the bank.

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KEY FINDINGS:

SUMMARY OF MAJOR FINDINGS:

1. Findings on Frequency of Electronic Payment System’s Usage

From the study, it was found out that majority of the respondents transacted using

Electronic Payment System. However, majority of them just deposit using the Electronic
Payment System for example ATMs and are not aware of the other services of Electronic
Payment Systems.

2. Findings on Customer Complements and Complaints.

The study findings indicated that Electronic Payment Systems are more effective in terms of
speed and accuracy compared to counter services. However, the study findings showed that
Electronic Payment Systems are not that much dependable and reliable because of frequent
break downs of the systems.

3. Findings on the Relationship between Electronic Payment Systems and Customer

Satisfaction

From the study, it is indicated that the relationship between Electronic Payment Systems and
Customer Satisfaction exists. However, there are other factors that determine customer
satisfaction. These two variables should work hand in hand to ensure success and survival of
Stanbic Bank Uganda limited. Other factors influencing customer satisfaction include branch
network, customer care, transactional costs charged on customers and loan facilities.

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Conclusion

The research purpose was to analyse whether the introduction of Electronic Payment Systems
helps improving the banking services and how it affects customer's satisfaction. Basing on the
findings of the study, it is imperative to conclude that Electronic Payment Systems has been of
great help in improving the banking services hence affecting customer satisfaction positively.

However full customer satisfaction can be achieved through considering also other factors like
wide branch network coverage, customer care services and charging fair prices on the services
offered by the banks.

Recommendations

The researcher recommends Stanbic bank to teach all its customers about all the services that
are offered through Electronic Payment Systems because majority of the customers are not
aware of these services.

Stanbic bank should train and employ a specialized and technical team to maintain and operate
Electronic Payment Systems so as to reduce the Electronic Payment Systems break downs.

There should be improved communication between the management and customers in order to
improve on the Electronic Payment Systems so as to satisfy their customers' needs.

The management needs to improve Electronic Payment Systems so as to satisfy customer's

needs. The bank needs to pay much attention on the customer complaints in order satisfy the
customers' expectation.

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APPENDIX: DOCUMENT CHECK LIST
Name of Organisation:

Stanbic Bank (Uganda) Limited.

Position of Person giving data:

Customer Service Agent.

Service:

Banking service.

Pricing strategies:

A cost-plus and market-based pricing strategy. The bank charges and interest rates are quite
low for this bank.

Place strategies:

Stanbic Bank (Uganda) Limited has suitable location for its branches.

Promotion strategies:

Stanbic Bank (Uganda) Limited has three promotional strategies that is to say advertising
strategy, personal selling strategy and sales promotion strategy. It uses advertising strategy to
win the loyalty of customers so as to improve its profitability performance. It uses the personal
selling strategy to maintain cordial relationship they have with existing customers and to
establish new friendship with non-customers. Thirdly it uses sales promotion strategy is to
attract customers to open up accounts with them.

Distribution strategies:

The bank has got a wide spread network of cash machines. It also has various distribution
channels, distribution coverage, outlet locations, inventory levels and location. Distribution in
this bank involves the internet banking, telephone banking, human tellers and ATM. The have
influenced customer satisfaction.

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Date:

Thursday 30th September 2021.

Title or Article:

Electronic Payment System and Customer Satisfaction

Author:

Nabatanzi Heather

Source:

Stanbic Bank (Uganda) Limited.

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REFERENCES:

1 Lubega Henry (1 March 2015). “The first bank in Uganda”. Daily Monitor.

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2 Kasemiire, Christine (30 October 2017). “Stanbic Bank gets first bancassurance licence”.
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3 Stanbic Bank. “SBU changes name to include Holding”.

4 Sumanjeet, Singh, Emergence of Payment Systems in the Age of Electronic

Commerce: The State of Art (July 24, 2009). Global Journal of International Business
Research, Vol. 2, No. 2, 2009, Available at SSRN: https://ssrn.com/abstract=1536620

Howcroft. (1991). Customer satisfaction in Retail Banking Service industries journal.

Kotler Phillips (1999), Marketing management.11th edition.

Bulunywa Waiswa (1995), Uganda institute of bank marketing, vol12 No 6 pp 10-18.

Hallowell. (1996). The relationship of customer satisfaction, customer loyalty and profitability.
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Zeithiantional, W. and Bither,.i(. (1998), customer satisfaction. London: Prince Hall
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