EFFECT OF BANK INNOVATION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANK IN RWANDA. A CASE STUDY OF BANK OF KIGALI LTD MAIN BRANCH (2017-2019)
Abstract
Bank innovation in commercial bank is seeking to reduce costs, improve efficiencies, reach new customers or improve customer experience and of course, make money and financial performance. Banking Industry is one of the most important service industries which touch the lives of millions of people. Its service is unique both in social and economic points of view of a nation. During the last decades, many countries have witnessed great change in conditions surrounding banking industry. Such transformations are results of technological changes, financial globalization, and financial environment and deregulation. This study analyzed the bank innovation on finance performance of commercial bank in Rwanda, especially in bank of Kigali Ltd main Branch. The study aim was to finding out whether the influence of bank innovations were effective and whether they really had influence on the financial performance of commercial bank in Rwanda. The design of this study was a quantitative descriptive in nature. A sample size of 50 respondents were selected purposively to take part into this study and Descriptive statistics such as frequency, percentages, mean and standard deviation were obtained to describe the characteristics of the variables whereas multiple regressions model was used to establish the relationships between the variables. Data were analyzed using statistical package for social sciences (SPSS) version 20. The findings revealed that there is very significant and strong effect of bank innovation on the financial performance of commercial bank in Rwanda. The study also revealed that there is very strong correlation between bank innovation and finance performance of commercial bank.
Keywords: Bank innovation, financial performance, mobile banking, agent banking, internet banking, automated tell machine
CITATION: Uzikwambara, L., Kihooto. E., & Mudakemwa, A. (2022). Effect of bank innovation on financial performance of commercial bank in Rwanda. A case study of bank of Kigali Ltd main branch (2017-2019). The Strategic Journal of Business & Change Management, 9 (1), 971 – 980.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2236
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