THE EFFECT OF MOBILE BANKING TO THE FINANCIAL PERFORMANCE OF BANKING INSTITUTIONS IN RWANDA case study: BANK OF KIGALI PLC period: 2020-2023

Abstract

The topic under this study is made of is to establish the effect of mobile banking on the performance of banking institutions in Rwanda. . with the following objectives are; To identify effectiveness of mobile banking services offered by Bank of Kigali PLC customers To assess the contribution of mobile banking to the performance in Bank of Kigali PLC. Based on the above table 4.7, (57.3%) respondents strongly agreed, (42.7%) agreed that Customers can also access banking services in deposit money Next (72.9%) respondents strongly agreed, (27.1%) agreed that Customers can access banking services anytime in case of money deposit and. and (45.8%) respondents strongly agreed, (54.2%) agreed that Customers can also access loan services if they have access on deposit The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking services. According to the table 4.10 responses provided by the respondents as shown in table number (79.2%) of total respondents strongly agreed and (16.6%) of total respondents agreed while (1.2%) were disagreed that mobile banking used for Reducing errors, number (70.8%) of total respondents strongly agreed and (29.1%) of total respondents agreed that mobile banking used for money transfer while (2.1%) were disagreed for that statement From 2020 up to 2023 the ratios of net profit margin 37.60%; 35.98%; 31.23% and 36.36% respectively. The table 4.16 shows the Return on Assets ratio during the covered period. From 2020 up to 2023.The ratio of Return on Assets are 2.95%; 2.95%; 3.22% and 3.52% respectively. This means that, in 2020 for 100 RWF of invested they got 2.95RWF; in 2021 for 100 RWF of invested they got 2.95RWF; in 2022 it got 3.22RWF and in 2022 got 3.52Rwfs. The above result, show that Bank of Kigali Headquarters, is profitable during the covered period The table 4.17 shows that from 2020 up to 2023, the ratios of Return on Equity are as follow: 14.86%; 18.16%, 18.72% and 20.42% respectively. Bank of Kigali Headquarters should provide customers individual trainings about the usage of the mobile banking Bank of Kigali PLC should strength security control in order to avoid hacking and cracking of personal details