Abstract:
This research was about “Effect of Saving mobilization on financial performance in commercial Bank in Rwanda: a case of Equity bank Rwanda plc”. The general objective of the research was, to assess the contribution of savings mobilization on financial Performance of financial institution in Rwanda. The specific objectives were; To assess the effectiveness of Saving mobilization in Equity Bank plc, To analyse the contribution of saving mobilization to the financial performance of Equity Bank Plc and To provide Suggestions to the equity Bank plc
A sample of 10 respondents was selected using purposive sampling. To achieve the above stated objectives, the researcher used questionnaire for Equity Bank Plc staff in order to collect primary data. The findings had shown that, there has been a sharp increase in financial institution over the last four years and this was achieved due to Equity Bank Plc interventions that are aimed at increasing the uptake and usage of financial products offered by Equity Bank Plc. Therefore savings mobilization does a vital role in bringing together people, as presented in the The table 4.8 indicates that the Trend of net profit of Equity Bank PLC of the research period where from 2019-2020 the net profit increased up to 10.5% and from 2020-2021 the net profit increased up to 16.8% and from2021-2022 net profit becomes 48.8% from. The net profit shows how Equity bank minimizes the expenses and users more agent for mobilizing the service to open account for 1000 as saving for customers and be functional Therefore the researcher Suggested that Equity Bank Plc management should diversify their deposit mobilization strategy especially by creatively using voluntary saving as well as lotteries. These strategies help boast deposit mobilization and have been found to win client loyalty. Equally important is development of new savings products, compulsory savings and rising of saving rate.
