CUSTOMER CARE SERVICESAND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN RWANDA. A CASE OF EQUITY BANK MAIN BRANCH (2019-2022)

Abstract

The study is about the Customer care services and financial performance of commercial banks in Rwanda. A case of Equity Bank main branch (2019-2022). Specifically this study analyzed the effectiveness of Customer care services in Equity Bank Rwanda; determined the effects of Customer care services on the performance of Equity Bank Rwanda. In virtue to the main purpose of this study, researcher designed an appropriate research methodology and used the interview, documentary and questionnaire techniques to collect and analyse relevant data which allowed the researcher to obtain the following findings:

Regarding to the effectiveness of customer care services applied by Equity Bank, results showed that Customer care services in Equity bank is effective as their services have been able to boost customer royalty where 32% of the total respondents are committed to always use Equity Bank Rwanda in every their activities/transaction. Also 46% of the total respondent confirmed that they will always say positive things about the bank to other people. On the other side 30% of respondents said that Equity Bank Rwanda offer and execute a solution to the complaints. The performance of this Bank also was analysed and results shows that from 2019 up to 2020.The ratio of Return on Assets are 3.35%; 3.22%; 2.70% and 2.62% respectively. And From 2019 up to 2022 the ratio of Return on Equity are as following: 22.19%; 21.07%; 18.90% and 22.71% respectively. Correlation Matrix also shows that there is a significant relationship between the variables under study because p-value is .000 which is less than 0.01 and when p-value is less than significant level its means that variables are correlated and the hypothesis is confirmed. Given that there were some customers who expressed dissatisfaction to the services received, Equity Bank Rwanda has to implement alternative mechanisms to capture information about customer dissatisfaction. Based on findings of this study, best practice is to develop more complaints systems whereby its customers are to be encouraged to submit information about issues encountered and/or suggest improvements.