Efficient Use of Electronic Banking and Financial Performance of Commercial Banks in Rwanda: A Case of Equity Bank Plc

Abstract

This general objective was to examine effect of efficient use of electronic banking on financial performance of commercial banks with reference to Equity Bank Plc. The specific objectives of the study were to assess effect of internet banking on financial performance of commercial banks in Rwanda; to ascertain effect of Debit and credit cards on financial performance of commercial banks in Rwanda Equity Bank Plc in Rwanda and to establish effect of mobile banking on financial performance of commercial performance in Rwanda. This study is significant as the findings will providing information on influence of electronic banking and financial performance for banking institutions in Rwanda also the finding will help researchers interested in carrying out further studies in this field. This study used descriptive and coefficient regression size effect between variables and for each objective whereby the target population was 370, while a sample size was 193 calculated using Yamane formula obtained using simple random technique. Questionnaire and interview used as a data collection instruments. Data analysis methods were descriptive and multiple regression for quantitative results while content analysis was used for information from interview. After collecting data, analyzing and interpreting data, the study findings showed that Adjusted R Square shows that internet banking, using debits and credits cards and mobile banking contributes up to 87.2% to financial performance of commercial banks in Rwanda and there is a positive and strong correlation between dependent and independent variables whereby internet banking has 0.7742 correlation with financial performance. Credits and Debits cards has 0.812 correlation with financial performance. Mobile banking has 0.967 correction with financial performance. The study recommended that to maximize the influence of easy fund transfer using digital banking on financial performance, banks should prioritize user-friendly and intuitive digital banking interfaces. They should invest in robust security measures to protect customer information and transaction integrity. Regular monitoring, maintenance, and updates of the digital banking platform are crucial to ensure smooth functionality and address any potential issues promptly. The study concluded that, internet banking, credits and debits cards and mobile banking as analyzed independent variables significantly contributes to financial performance. Keywords: Electronic banking, financial performance, Commercial banks, Equity Bank Plc, Rwanda