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.

TABLE OF CONTENTS

Preliminaries

Declaration A

Declaration B ii

Approval sheet iii

Dedication iv

Acknowledgement v

Abstract vi

Table of content vii

List of tables x

Acronyms

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 2

Purpose of the Study 3

Research Objectives 3

Research Questions 4

Null Hypothesis 4

Scope 4

Significance of the Study 5

Operational Definitions of Key Terms 6

Two REVIEW OF RELATED LITERATURE 9

Concepts, Ideas, Opinions from Authors/Experts 9

Theoretical Perspectives 23

Related Studies 25

Three RESEARCH METHODOLOGY 28

Research Design 28

Research Population 28

Sample Size 28

Sampling Procedure 29

Research Instruments 30

Validity and Reliability of the Instrument 31

Data Gathering Procedures 31

Data Analysis 32

Ethical Considerations 33

Limitations of the Study 33

Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 35

Five FINDINGS, CONCLUSION AND RECOMMENDATIONS 47

Findings 47

Conclusion 50

Recommendation 51

AREA FOR FURTHER RESEARCH 52

REFERENCES 54

Appendices 57

Appendix I Transmittal Letter 57

Appendix II - Clearance from Ethics Committee 58

Appendix III - Informed Consent 59

Appendix IV - Research Instrument 60

Questionnaire to be filled by the clients 61

Informant interview guide for bank officials 64

Appendix VI-Proposed Budget 66

Appendix Vu-Time Frame 67

Researcher~s curriculum vitae 68