The Effect of Electronic Banking on Customer Services Delivery in Commercial Banks in Rwanda

Abstract

The aim of the study was to assess how electronic banking affected customer delivery channels in Rwanda commercial banks. The specific objectives include assessing the effectiveness of e-banking, analyzing the factors affecting the customer delivery system, and also finding out the affiliation that exists between customer service delivery and e-banking in the bank of Kigali. Study participants included 1215 employee and about 350000 bank clients. The total number was 351215 study participants. The sample size was 400, which included both the staff and clients. The study revealed that customer service delivery in Bank of Kigali was explained by the probability of 0.0374 for internet banking; by the probability of 0.0004 for mobile banking; by probability of 0.0010 for electronic tax and that are respectively expected to 3.74% & 0.04% & 0.1% and of probabilities which are less than 10%. If we consider the simple regression theory, there is a probability of less than 10% by each electronic banking factor, which represents functional fitness variability. The R² is 0.969, whereas the Adjusted R² is 0.965, which indicates estimated model goodness. Up to 96.9% of the long-run appreciation in customer service delivery is influenced by changes in internet banking; mobile banking; electronic tax as implemented by the organization. Hence, the study revealed of essential affiliation between electronic banking and the observed factors, and the customer delivery channel in Bank of Kigali. The study recommended on sensitization of clients on the utilization and advantages of electronic banking services through having public awareness programs that boost their knowledge of the service.