IMPACT OF ELECTRONIC BANKING SERVICES ON THE PERFORMANCE OF COMMERCIAL BANKS IN RWANDA. CASE STUDY OF BANK OF KIGALI », PERIOD: 2020-2023

Abstract

The topic under this study is made of “is to assess the effect of electronic banking services to the performance of commercial banks in Rwanda.. with the following objectives are; to assess the effectiveness of electronic banking services provided by Bank of Kigali PLC., to determine the contribution of electronic banking services to performance of Bank of Kigali PLC. In the research the sample was 53 staff respondents which have provided information needed for our research of electronic banking Looking at the table 4.6 it is clear that almost all respondents with 83.2% of the total respondents confirmed that ATM transactions are performed anytime and 12.8% agreed with this none answered negatively It is also clear that 86.7% of the total respondents strongly agreed that there is employee’ speed in dealing with ATM problems 13.3% of the total respondents agreed with this The results also show that 86.7% of the total respondents strongly agreed that there is employee’ speed in dealing with ATM problems 13.3% of the total respondents agreed with this. Table 4.8.shows that out of 53 respondent, 79.2% of respondents were strongly agreed 20.8% of respondents were agreed Customers valuable time is save when accessing bank services through Electronic Card, (90.5%) were strongly agreed, (9.5%) were agreed that Customers can also access on withdrawal their money. Next statement shows that 86.9% of respondents were strongly agreed, 11.3% were agreed that Electronic Card services has been key in monitoring bank costs Results presented in the table 4.9 demonstrate that BANK OF KIGALI PLC recognized a continuous increase in deposit amount where it increased by 23.2% in 2021; by 10.3% in 2022 and by 27.8% in 2023. From 2020 up to 2023 the ratios of net profit margin 37.60%; 35.98%; 31.23% and 36.36% respectively. This means that for 100 Rwf invested, the bank got 37.60in 2020 and for RWF100, the bank got 35.98Rwf in 2021; 31.23Rwfs in 2021 and got 36.36Rwfs in 2022. I conclude saying that Electronic banking services have a positive impact of performance of I&M BANK PLC Based on the information obtained and the analysis of the results the following recommendations are of great importance: I&M BANK PLC should keep on upgrading their E-banking technology in order to have an up to date system for effective service delivery