EFFECT OF DIVERSIFICATION STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS IN RWANDA CASE OFSTUDY: CASEOFACCESSBANKRAWNDA PLC(2020-2023)

Abstract

ABSTRACT The research focuses on Effect of Diversification Strategies and Performance of Commercial Banks in Rwanda Case of Access Bank Rwanda PLC (2020-2023)” This study was specifically to analyze the effectiveness of diversification strategies used by ACCESS BANK PLC. Second specific was to determine contribution of diversification strategies to the performance of ACCESS BANK PLC. The theoretical foundation for this work is provided by these theories. 45 as sample size who make up the marketing team, accounting team, and financial department from the study's population. Both qualitative and quantitative methods will be used in the investigation. The major technique of data gathering was a self-administered questionnaire. Nevertheless, data gathered through questionnaires will be supplemented, verified, and strengthened by interview and content analysis. The researcher was able to identify questions that require modification and those that are vague from this pilot study. Researcher will present the analyzed data in form of tables. Table 4.5 .indicates that (66.6%) of respondents strongly agreed, (28.8%) of respondents agreed and (2.2%) of respondents disagreed that The ACCESS BANK RWANDAPLCs' diversity via agency banking enables them to reach out to rural areas and (80%) of the majority of total respondents strongly agreed, (20%) of respondents agreed that Diversification through agents banking services help ACCESS BANK RWANDAPLCtoserve it customer 24hour/7days The table 4.13 shows the Return on Assets ratio during the covered period. From 2020 up to 2023.The ratio of Return on Assets are 1.46%; 1.12%; 2.48% and 20.13% respectively. The table 4.14 shows that from 2020 up to 2023, the ratios of Return on Equity are as follow: 10%; 8%,17% and 20% respectively. This means that there is a significant relationship between diversification strategies and Performance of ACCESS BANK RWANDA PLC. Therefore, it is through this the second specific objective of this study was analysed and of course the above results allowed researchers to confirm the second hypothesis stipulating that “diversification strategies has positive effects on the finance performance of ACCESS BANK RWANDA PLC”