Customer Services and Financial Performance of Commercial Banks in Rwanda. A Case of Equity Bank Main Branch (2021-2023)

Abstract

The study is about the customer services and financial performance of commercial banks in Rwanda. A case of Equity Bank main branch (2021-2023). Specifically this study analyzed the effectiveness of customer service in Equity Bank Rwanda; determined the effects of customer service 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 I&M Bank, results showed that customer 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. It was also observed that the services delivered by Equity Bank Rwanda helped the bank to avoid time waste in lines waiting for services. The performance of this Bank also was analysed and results shows that from 2021 up to 2023 the ratios of net profit margin were 36.35%; 36.95%; 37.40% and 28.01% respectively. From 2021 up to 2023.The ratio of Return on Assets are 3.35%; 3.22%; 2.70% and 2.62% respectively. And From 2021 up to 2023 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. Also recommendations were provided to ensure the performance of Equity Bank Rwanda. 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