Abstract:
The study aims to assess the impact of digital banking services on the performance of commercial banks in Rwanda and is to provide a summary of the research, point out the conclusions from the data collected of the study and make recommendations. The main purpose of the study is to analyze the effect of digital banking to the financial performance of financial institution In Rwanda and taking BK PLC branch in the effectiveness of digital banking services offered by BK main branch, to analyses the effect BK’s digital banking services to its performance and the hypotheses of the study are Digital banking services in BK main branch are offered effectively and Digital banking services in BK main branch contribute positively to its performance. This research presents the impact of digital banking services on the performance of commercial banks in Rwanda. The data corrected were presented and analyzed using SPSS in relation to research objectives, to analyze the implementation in BK. From the above findings, researcher confirmed the first hypothesis saying that Digital banking services in BK main branch are offered effectively. Based on the findings, the net income of BK PLC increased during the period from 2020-2023. In 2020 to 2021 the net income increased to 13,461,681Rwf which present 35.02% of increase, in 2021 to 2022 the net income increased to 7,960,832Rwf which present 15.34% of increase, in 2022 to 2023 the net income increased to 14,961,877Rwf which present 24.99% of increase. This indicates that the net income of BK PLC keep on increasing which is the main indicator of high performance of the bank within the digital banking services bank of Kigali increase the net income. The return on asset presented by the table 23 show that in 2020, the return on asset is 2.94%, in 2021 the return on Assets is 3.26%, in 2022 return on Asset is 3.22% and in 2023 the return on asset is 3.52%. During the research period of 2020 to 2023 show that there is an increase of income generated from the asset of BK PLC , due to its effective of digital banking services as it involved in review of how company used its assets to generate income. The ratio helps the investor deciding to invest or not in the company. This table shows the return on equity of BK PLC in the period of 2020 to 2023 as follow, 14.81% in 2020, 18.16% in 2021, 18.74% in 2022 and 20.42% in 2023. This percentage shows that there is an increase in return on equity from 2020 to 2023, with the data collected from the financial statement the researcher confirmed the second hypothesis saying that digital banking services in BK main branch contribute positively to its performance.
