Technology Innovation, Risk Management Practices and Financial Performance of Commercial Banks In Uganda

Abstract

The study sought to examine the relationship between technology innovations, risk management practice and financial performance of commercial banks in Uganda. The study focused on commercial banks located in Kampala Central region. A cross sectional survey design was adopted using a quantitative approach. The study used convenience sampling technique to select bank staff from 24 commercials banks located in Kampala. Data was analyzed with the help of Statistical package for social scientists (SPSS) v 20. Inferential statistics, correlation, regression and mediation analysis were carried-out to achieve the objectives of the study. The study findings indicated a significant positive relationship between study variables. The regression findings indicate that technology innovation and risk management practices predict financial performance by 11.3%. The findings indicated that risk management practices had a significant effect on the relationship between technology innovation and financial performance. The study suggests a number of recommendations among which is the need for carrying out a qualitative study.