Abstract: An E-finance is the provision of financial services and markets using electronic communication and computation. These are the use of electronic payments systems, the operations of financial services firms and the operation of financial markets. The general objective was to assess the effect of electronic finance on performance of government financial institutions in Rwanda; specifically, in RSSB as one of the pilot government financial institution in Rwanda. To achieve this the study was guided by the following specific objectives; to assess the effect of early warning systems as part of e-finance on performance of government financial institution in Rwanda, to determine the effect of real time operational financial system of e-finance on performance of government financial institution, to investigate the effect of business processes automation of e-finance on performance of government financial institution and to determine the effect of financial process improvement and performance of government financial institutions in Rwanda. The target population of the study was 150 respondents from RSSB main branch. The sample size of 110 respondents was determined using Yamane’s formula. Stratified random sampling was used to determine the sample size. The study used both primary and secondary data, where questionnaires, interview and annual reports of RSSB were used. Primary data for the study was collected using structured questionnaires that were administered to the respondents. Quantitative data obtained from close ended questions was analyzed by using descriptive statistics. Narrative data obtained from interviews and open-ended questions in the questionnaire were analyzed using qualitative approaches. Data collected was analyzed through SPSS version 21. Data analysis involved statistical computations for averages, percentages, and correlation and regression analysis. Descriptive and inferential statistics and content analysis was used for specific data. From the findings, it was revealed that early warning system, Real time operational financial system, Business processes automation and Financial process improvement to a constant zero, performance of government institutions would be at 0.455. A unit increase on early warning system would lead to increase in performance of government institutions by a factor of 0.016, a unit increase in Real time operational financial system would lead to increase in performance of government institutions by a factor of 0.182, a unit increase in Business processes automation would lead to increase performance of government institutions by a factor of 0.153 and unit increase in Financial process improvement would lead to increase performance of government institutions by a factor of 0.204. The study recommends that RSSB through the government should allocate adequate finances to support in strategy implementation to improve the quality of their services to the Rwanda citizens. Future researchers can conduct a comparative study in another parastatal body in Rwanda. Investigations can be done on similar variables then this will give room for the researchers to compare findings to establish areas that are similar and those which are unique after which a reliable conclusion can be drawn.
Keywords: Agency Banking Services, Financial Performance of Commercial Banks.
Title: EFFECTS OF ELECTRONIC FINANCE ON PERFORMANCE OF GOVERNMENT FINANCIAL INSTITUTIONS IN RWANDA: A CASE STUDY OF RWANDA SOCIAL SECURITY BOARD
Author: Irambona Angelique, Dr. Patrick Mulyungi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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