The Effect of Electronic Banking Tools on Operational Performance of Commercial Banks in Rwanda. A Case of Bank of Kigali (2017-2021)

The main objective of this research was to assess the effect of electronic banking tools on the operational performance of Bank of Kigali in Rwanda with the specific objectives to determine the effect of internet banking transactions on operational performance in Bank of Kigali , to examine the influence of electronic cards on the operational performance of Bank of Kigali , and to evaluate the impact of mobile banking on the operational performance of Bank of Kigali . The correlational research design was employed in this research. The sample was 72 from the population of 254 Bank of Kigali employees working in operations department, corporate and customer retail department, risk and compliance department and digital banking department at headquarters. The sampling techniques used was stratified sampling. The main instrument of data collection in the study were the questionnaires, interviews, and published reports. The study used Statistical Package for Social Scientists (SPSS. 23) to analyze data collected. The findings revealed The results show that there is a linear relationship between the two variables (independent and dependent) with correlation of height and weight (r= 0.409; 0.356; 0.578 respectively). Furthermore, correlational analysis showed that between electronic cards banking and Operational performance there is significance level indicated by 0.409; 0.356; 0.578 respectively) for a two-tailed test), as these values are all greater than 0.05. model summary showed that 81.9 % changes in operational performance levels of commercial bank could be accounted to changes in internet banking, mobile banking, and electronic cards transactions. The calculated value from ANOVA was greater than the critical value tabulated (48.638> 2.764) and this is an indication that internet banking, mobile banking, and electronic cards transactions significantly influence operational performance level of commercial banks. From the findings on the coefficient of determination, the study found that there was great variation in the operational performance of commercial banks in Rwanda could be accounted to changes in internet banking, mobile banking, and electronic cards transactions of the bank at 90% confidence interval. The researcher has found the electronic cards banking in Bank of Kigali Plc positively effects the operational performance. We have recommended for various players in the banking sectors to adopt electronic banking service as this will enable them to have a larger coverage, flexibility, interactivity, and greater accessibility compared to conventional banking.