Opportunities and Challenges of Electronic Banking On Organizational Performance of Indigenous Banks in Rwanda

ABSTRACT The study was carried out on “opportunities and challenges of electronic banking on organizational performance of indigenous banks in Rwanda”. This identified the opportunities these banks have identified in Rwanda and various challenges they face in their endeavors to provide efficient and effective services and products through electronic banking. The Data was collected using structured questionnaires and interview schedules. The population size was 150 and the sample size was 109. Data collected was analyzed using SPSS and inferential Statistics. The study found out that the benefits of e banking into two that is, opportunities to the clients and opportunities to the banks .To the Banks: The e- Banking reduced the cost of wages of tellers and back office personnel; it has resulted into dramatic productivity gains and Reduction in repetitive cost. Improved speed in receiving and processing instruction. Reduced crowding in banking halls .To the Clients: Enjoy Direct Deposit, Ease of Account Access and Convenience, Customers can carry out their transaction without waiting in a line for service and It saves costs for stationary and cheque books E-Banking also makes it easier for customer to compare banks services and products hence give clients a variety of choices to make.The study found out also the challenges of e banking: Poor Telecommunication Infrastructure, Security Concerns, and Poor Internet Accesses.The study concluded that E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial services need.