The effects of electronic banking system on the financial performance of banks in Somalia (Salaam Somali Bank)

Electronic banking, also known as e-banking, refers to the use of electronic and telecommunication networks to provide a wide range of value-added products and services to bank customers. It is a result of integrating e-commerce in the banking and financial services sector. The electronic banking system in Somalia lags behind global standards, resulting in a delayed introduction of electronic banking in the country. This study examined the effects of electronic payments, mobile banking, online banking, and financial performance. This study used a survey method with 133 respondents. The respondents are collected from people in Somalia. The data obtained in the study were processed using the IBM SPSS Statistics analysis tool V25.0. Quantitative methods of data collection were used in this study with questionnaires. Electronic banking systems have significantly transformed the financial landscape of Salaam Somali Bank and the broader banking sector in Somalia. This study has established that electronic banking has not only enhanced the efficiency of banking operations but has also improved customer satisfaction through more accessible and faster services. The study also acknowledges challenges such as cyber security threats and the need for continuous technological upgrades. However, this study has limitations in getting some detailed data because of confidentiality reasons which made the data collection very difficult since most of the commercial banks could not provide the critical information that was required because of fear that competitors could use the information for their gains.