Abstract:
The topic under study is entitled ‘’effect of accounting information system on performance of banking industry in I&M BANK PLC” Case of I&M BANK PLC (2019-2022). The specific objectives are To evaluate the effectiveness of accounting information systems applied by I&M Bank, To analyze the financial performance of I&M BANK PLC, To analyse the relationship between accounting information systems and performance of I&M BANK PLC, The study adopted descriptive design of study and Questionnaires were used to collect data which was presented to managers and senior accountants. Data collected was presented in the form of tables and graphs. The sample of the study consisted 61 Data collected was analyzed using Microsoft Excel and Correlation and regression analysis was used to analyze the data. The study found that there exist a positive relationship between accounting information systems and performance of banking industry in Rwanda. The results are consistent with empirical reviews which indicated that there exist a relationship between AIS and performance of banking industry in Rwanda The study concluded that accounting information system has an impact on the performance of banking industry in Rwanda in terms of effective management, From 2019 up to 2022 the ratios of net profit margin were 28.98%; 22.41%; 20.03%; and 28.88% respectively. This means that in 2019 for 100RWF of sales, I&M BANK PLC got 28.98; in 2020 for 100RWF of sales, the I&M BANK PLC got 22.41; in 2021 for 100Rwf, the I&M BANK PLC got 20.03, and in 2022 for 100 RWF, I&M BANK PLC got 28.88 The accounting system contributed to the performance of I&M BANK PLC. The key recommendation of this study is that banking industry companies desiring to increase their efficiency in terms of profitability and adaptability to market changes can achieve that by investing in a good accounting information system in their financial accounting processes.
