The role of online marketing on financial performance of financial institutions in Rwanda. Case of Bank of Kigali PLC (2021-2023

Abstract

The purpose of the study was to assess the role of online marketing on financial performance of financial institutions in Rwanda (2021 – 2023). The specific objectives of the study were to analyze the effectiveness of online marketing applied by Bank of Kigali PLC and to assess the role of online marketing on the financial performance of Bank of Kigali PLC. For effectiveness of online marketing in Bank of Kigali Plc, results shows that this bank use online marketing at excellent level. The findings show that the types of online marketing used in this bank are Web solution, Email marketing, Mobile marketing, Social media marketing, Video marketing, Web analytics, Webinars and Advertising. The findings in this research showed that from 2021 up to 2023, the ratios of net profit margin are 35.98%; 31.23% and 33.35 respectively. This means that for RWF100, the bank got 35.98 Rwfs in 2021 got 31.23 Rwfs in 2022 and got 33.35 Rwfs in 2023 From 2021 up to 2023, the ratios of Return on Equity are as follow: 18.16%; 18.72% and 20.42 respectively. This means that in 2021 for the 100 Rwf investors have invested in bank, they generated in 18.16 Rwf of benefit and in 2022 for100 Rwf investors have invested in bank, they generated in 18.72 Rwf of benefit; and in 2023 for the 100Rwf investors have invested in bank, they generated in 20.42 Rwf of benefit. From 2021 to 2023, current asset ratio were 0.41; 0.47 and 0.51 respectively from 2021-2023. It is also clear that Cash Ratio were 0.41; 0.96 and 0.49 respectively from 2021-2023. Therefore, this is good because if they are able to cover their total liabilities at this level, they would cover almost all current liabilities.