Abstract:
The purpose of the study was to establish the contribution of electronic banking system on financial performance of financial institutions in Rwanda. The specific objectives of the study were to analyze the effectiveness of electronic banking system in Bank of Kigali/Main branch; to determine the contribution of electronic banking system to the financial performance of Bank of Kigali/Main branch.The results show that Based on the analyzed field data collection, the types of electronic banking applied by bank of Kigali plc, ATM, Mobile banking, Internet banking, Electronic Card banking, Telephone banking and Agency Banking but because of the insufficient time of conducting this research the researcher focussed only on three types of electronic banking services which are AT,. Mobile banking and electronic card banking. From 2021 up to 2023, the ratios of net profit margin are 28.8%; 31.23% and 33.35 respectively. This means that for RWF100, the bank got 35.98 Rwfs in 2021 got 31.23 Rwfs in 2022 and got 33.33 Rwfs in 2023. Therefore Bank of Kigali Plc’s net profit margin had been increased from 2021 to 2023 which means that they recognized performance. And of cause the performances goes hand in hand with the electronic banking. From 2021 up to 2022.The ratio of Return on Assets are 2.95%; 3.22% and 3.53% respectively. This means that,; in 2021 for 100 RWF of invested they got 2.95 RWF; in 2022 got 3.22 Rwfs and in 2023 for 100 RWF of invested they got 3.53 RWF. The above result, show that Bank of Kigali Plc is profitable during the covered period. Because the standard ratio of Return on Assets is 1%. And the above result shows that the average of return on assets is 3.23%. From 2021 up to 2023, the ratios of Return on Equity are as follow: 18.16%; 18.72% and 20.42 respectively. This means that in 2021 for the 100 Rwf investors have invested in bank, they generated in 18.16 Rwf of benefit and in 2022 for100 Rwf investors have invested in bank, they generated in 18.72 Rwf of benefit; and in 2023 for the 100Rwf investors have invested in bank, they generated in 20.42 Rwf of benefit.Looking at the table 23 it is clear that the majority of respondents representing 76% strongly agreed that E-banking help Bank of Kigali ltd to increase its profit and 24% agreed with this. Also results demonstrate almost all respondents with 90% strongly agreed that E- banking help Bank of Kigali ltd to reduce cost, and 10% agreed with this. Also all respondents (100%) strongly agreed that E-banking lead Bank of Kigali td’s customers to satisfaction. 100% of the total respondents strongly agreed that E-banking helps Bank of Kigali to increased banks’ asset..
