Abstract: In Rwanda there is delay in payment of checks between banks; time wasted in banks as people line in queue waiting for service, errors as a result of manual work and fraud related cases was common. General objective of this study is to examine the impact of e-banking development and performance of financial institutions in Rwanda. The researcher used a descriptive research design, where qualitative and quantitative approaches were used. The population of the study was composed of 36 employees of I&M bank. Data was analyzed by use of both descriptive and inferential statistical, as well as multiple regression model and diagnostic tests. E-banking strongly affect the financial performance of I&M bank (R=0.987) with variations on e-banking tools contributing 97% to its. The F-statistics (F=3.244) is greater than the P-value (0.000) hence a further confirmation that aspects of e-banking significantly influence the financial performance of the bank. I&M bank’s profitability in terms of; return on asset and return on equity kept increasing from 2014 to 2017. It is evident that the ROA increased greatly from 2014 to 2017 and this is represented by 0.421 to 0.624 respectively and this evidences the best performance of the bank in those years. In 2015 the contribution of e-banking was 3.8%, in 2016 (8.5%) and in 2017(9.7%). This means that e-banking have positively contributed to I&M bank performance. The study concludes that there is positive relationship between e-banking and financial performance of I&M bank. The researcher recommends that policy makers and players in the market especially financial institutions should increase the awareness to the public about the cashless economy by adopting more usage of e-banking. With the significant increase in financial inclusion recorded in Rwanda, this bankable population should clearly be made aware of the benefits of adopting e-banking practices, such as reduction in the time wastage and costs.
Title: E-BANKING DEVELOPMENT AND PERFORMANCE OF FINANCIAL INSTITUTIONS IN RWANDA (CASE STUDY I&M BANK)
Author: EMMANUEL MUGANDURA, DR. PATRICK MULYUNGI, DR. JAYA SHUKLA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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