Abstract:
This study examines the impact of digital banking on customer satisfaction in Rwanda, using the Bank of Kigali as a case study. The research aims to achieve two primary objectives: first, to identify the range of mobile banking services offered by the Bank of Kigali, and second, to analyze the effect of these services on customer satisfaction. The findings indicate that the Bank of Kigali provides various mobile banking services, with "Account Balance and Transaction Inquiry," "Funds Transfer," "Bill Payments," and "Account Management" being the most popular among customers. These services are utilized by 100% of the surveyed customers, highlighting their widespread appeal. However, the study also reveals that the adoption rates for "Loan Applications" and "Account Opening" through mobilebankingarecomparativelylower,suggestingdifferinglevelsofinterestamongcustomers.Interms of customer satisfaction, the research shows overwhelmingly positive feedback from respondents. Mobile banking services are seen as crucial in enhancing customer loyalty, reducing complaint retention, and improving service tangibility and quality. Respondents also highly value the time efficiency and increased control over financial transactions that mobile banking offers. Additionally, the accessibility of mobile banking outside regular banking hours and its time-saving benefits significantly contribute to customer satisfaction. The study supports the hypothesis that mobile banking services significantly enhance customer satisfaction in Rwanda. Mobile banking, as provided by the Bank of Kigali, plays a vital role in improving various aspects of customer satisfaction, including loyalty, service quality, and convenience. These findings have implications for financial institutions aiming to boost customer satisfaction through mobile banking services in the Rwandan market. Based on the
findings and analysis of "The Contribution of Digital Banking Towards Customers' Satisfaction in Rwanda 2019-2022," here are some recommendations for financial institutions, regulators, and policymakers:
∙ Conduct financial literacy programs to educate customers about the full range of services available through Digital banking. Many customers may not be aware of the benefits or functionalities beyond basic transactions.
∙ Given the lower adoption of Digital account opening, banks should streamline and simplify the process to encourage more customers to open accounts via Digital banking. This can include reducing paperwork and enhancing the ease of verification.
