This study was undertaken to establish the relationship between online banking, employee attitude and quality of service of financial institutions in Nebbi and Arua districts in Uganda. The research problem was that, financial institutions in Nebbi and Arua districts registered an average of 186 customer complaints about poor quality of service like ATM failure, failed centemobile, airtime purchase, failed interswitch withdraw and failed agent banking. Out of those complaints 56.45% revealed that there is poor quality of services offered to customers as evidenced by long queues. The study was based on a cross sectional design with a quantitative approach whereby the simple random method was used on 17 financial institutions, with 124 respondents forming the units of analysis and inquiry for the study. A questionnaire was used to collect data and it was found that online banking and quality of service are positively and significantly related (r = .860, p<.01). More to that, there was a significant relationship between employee attitude and quality of service of the financial institutions (r = .879, p<.01). Additionally, both online banking and employee attitude contribute 79.0% of the variance in quality of service (Adjusted R Square = 0.790). Employee attitude (β=.567) is a better predictor of quality of service than online banking (β=.343). In conclusion, the management of financial institutions should put more emphasis on employee attitude since it has more predictive power (56.7%) on quality of service of financial institutions by communicating to bank staff through the branch managers in the meetings on the issues concerning customers care about the way they communicate to their clients, staff character and behavioral intentions of staff. This can be done by advising staff to listen to their customers carefully, talk to customers clearly and willingly, respond to customers timely, customers are given feedback on reported complaints by staff. Furthermore, management of financial institutions should put emphasis on online banking since it also predicts quality of service (34.3%) of financial institutions by organizing refresher training to its clients from time to time when they come to make transactions in the bank so that they learn how to use online banking, be able to interact with the online system and they can navigate the website easily.

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