Electronic Banking Services and Financial Performance of Selected Commercial Banks in Rwanda

Orlise Ngabonzima Irakoze & Osiemo Kengere Athanas
Mount Kenya University
Email: Orliseirakoze@gmail.com

Abstract: This paper investigates the impact of electronic banking on the financial performance of selected commercial banks in Rwanda, specifically focusing on the effects of internet banking. Using a descriptive research design that integrates qualitative and quantitative methods, data were collected from 1,385 employees of Bank of Kigali, I&M Bank, and GT Bank, with a final sample of 310 respondents. Data collection involved questionnaires and interview guides, and analysis was performed using SPSS software version 21. The findings revealed mixed perceptions of internet banking, which scored 3.85 for its role in expanding the client base. Correlation analysis using Pearson’s coefficients indicated a strong positive relationship between internet banking and financial performance (r = 0.886), while multiple regression analysis demonstrated that approximately 78.3% of the variance in financial performance could be explained by the independent variables, with the regression model being significant (F = 23.705, p < 0.001). The study concluded that online banking significantly affects the financial performance of Bank of Kigali, I&M Bank, and GT Bank. The study recommended that the management of Bank of Kigali, I&M Bank and GT Bank should prioritize upgrading online banking platforms to improve usability and overall customer experience. This includes making interfaces more intuitive and user-friendly, as well as ensuring that all features are easily accessible. Additionally, management should implement mechanisms for gathering regular customer feedback, such as surveys or focus groups, to identify areas for continuous improvement.