Financial Innovations and Profitability of Commercial Banks in Uganda.
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Date
2023
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Abstract
The purpose of this study was to examine the relationships between financial innovation and profitability of commercial Banks in Uganda. The study was prompted by the low profitability evidenced by some banks being closed down because of low profitability.
The study adopted a cross section and descriptive research design using Roscoe 1975 to get a sample size of 24 commercial banks. Self-administered questionnaires were used to collect the responses. The data was tested for reliability and validity, analyzed using SPSS and results presented based on the study objectives.
Findings indicated that, there is a positive and significant relationship between product innovation and process innovation and profitability of commercial Banks in Uganda which indicated that an improvement in one variable would lead to improvement of the other. However, product innovation was found to be a stronger predictor of profitability in commercial Banks in Uganda.
With these findings the study makes a contribution of providing empirical evidence that financial innovation in commercial banks is highly influenced by commercial banks introducing and improving its products/services since it results into profitability There is also a need to put much emphasis on Financial Innovations by continuously introducing and improving on the existing products/services.
The Commercial Banks in Uganda should promote and appreciate Financial Innovations as they are vital not only in enhancing on cost minimization, thus improving profitability.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Masters of Business Administration of Makerere University. (PLAN A).
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Citation
Joyce, A (2023) Financial Innovations and Profitability of Commercial Banks in Uganda. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.