EFFECT OF DIGITAL MARKETING ON FINANCIALPERFORMANCE OF COMMERCIAL BANKS IN RWANDA A CASE OF BANK OF KIGALI (2019-2023)

Abstract

The study assesses the effect of digital marketing on performance of commercial banks in Rwanda. The specific objectives were to analyze the effectiveness of digital marketing in Bank of Kigali, To find out the relationship between digital marketing and financial performance of Bank of Kigali. And to assess how the application of digital marketing help in reducing marketing cost against traditional marketing in commercial banks in Rwanda. This study employed a descriptive cross-sectional survey design where it was used to gather information by 30 employees and customers from. To analyze the performance of Bank of Kigali Plc these indicators have been used: Net income, the trend of customers and the trend of deposit and ratio analysis method has been used in this study Net operating income is very important factor as well as performance indicators, since it became in Rwanda market. Bank of Kigali Plc has come up with various innovations these were helping a company to achieve its targets, vision, mission, vision, this show how Bank of Kigali Plc gets net operating income from its normal business activities which are to sale Products and services to the customers As it is shown by the table 4.8, Bank of Kigali Plc/main branch had made increment net operating income which varied in year 2020, the evolution of net operating income was36.7% in in 2021 , 22.4%in the year 2022 and 19.9%in 2023, where net operating income has increased by (36.7)% As the head of marketing department in BK main Branch said that the bank is always striving on digital marketing in while in 2021 because of covid 19 the net operating income was decreased. The correlation is equal to 0.851 which falls in intervals between 0.70 and 0.90 which means that there is a positive high correlation between the two variables of the study. Then Digital Marketing is significantly correlated to performance at0.851 of correlation coefficient implying a positive high relationship. Therefore, the hypothesis is verified and confirmed that this study test the relationship between Digital Marketing and financial performance To conclude, according to the findings there is significant effect of digital marketing on performance of commercial banks in Rwanda. As recommendation, the commercial banks in Rwanda should invest in digital platforms so as to be in a position to take full advantage of the digital marketing potential.