CONTRIBUTION OF DIGITAL BANKING AND MOBILE PLATFORMS ON MFIS RELATIONSHIP WITH THE CUSTOMERS IN RWANDA. (CASE STUDY OF GOSHEN FINANCE PLC MUSANZE BRANCH)
Abstract
This study assessed the contribution of digital banking and mobile platforms on MFIs relationship with the customers of Goshen finance PLC in Musanze district. It had the following objectives: To determine the influence of Automated Teller Machine services on MFIs relationship with the customers, to assess the contribution of online banking service on MFIs relationship with the customers, to evaluate the effect of mobile banking service on MFIs relationship with the customers and to assess the level of satisfaction of Goshen Finance PLC customers in relation with digital banking during COVID-19 pandemic in Goshen finance PLC. This study was designed as qualitative, data were collected by using questionnaire. Information was gathered from 373 respondents among staffs and clients in Goshen finance PLC branched at Musanze district and analyzed by using SPSS software to get relevant information. After analyzing data from the field and computing them, findings revealed the following: that 100% of respondents agree that ATM services increase number of customers, 100% revealed that life improved through ATM services, 100% agreed that it increase competition , 85.2% of the respondent reported that ATM service reduce human intervention, 83.5% was the result of the respondents agreed that ATM helps to increase productivity, while 71.5% of the respondents reported that ATM services accelerate economic growth. The contribution of online banking service on MFIs relationship with the customers, the respondent revealed that 100% strongly agreed that, online banking increase the number of clients in all items have seen as the highest percentage because the client can use online for checking balance, deposit and withdraw money through mobile platforms of the Goshen finance called push and pull service this reduce the transport costs and time saving for the clients, results showed that 45% agreed and 36% strongly agreed that poverty reduction occur through transport cost eliminated and using the time in the other activities and benefiting jobs or other work as direct and indirect employment opportunities. Revealed that 43.2% of the respondent strongly agreed and 34.2 agreed that MFI can expanded due to using online banking. This implied that the online banking which is well managed may contribute positively to MFIs relationship with the customers. Also, findings showed that digital banking and mobile platforms play the roles on MFI relationship with the customers in Goshen finance PLC for the following percentage, 81% strongly agreed and 19% agreed that digital banking crucial important role to the clients for the time saving. And 93% of the respondents were satisfied during the COVID-19 for using digital banking. It is evidenced that there is significant relationship between digital banking and mobile platforms on MFIs relationship with the customers. Therefore, the MFIs relationship with the customer’s satisfaction depending on digital banking and mobile platforms improvement.
Keywords: Automated Teller Machine Services, Online Banking Services, Mobile Banking Services, Satisfaction Levels, Goshen Finance PLC, Micro Finance Institutions
CITATION: Ntirenganya J. P., & Twesigye, D. (2022). Contribution of digital banking and mobile platforms on MFIS relationship with the customers in Rwanda. (Case study of Goshen Finance PLC Musanze Branch). The Strategic Journal of Business & Change Management, 9 (4), 1651 – 1663.
Full Text:
PDFReferences
Afzal, B., Umair, M., Shah, G. A., & Ahmed, E. (2019). Enabling IoT platforms for social IoT applications: Vision, feature mapping, and challenges. Future Generation Computer Systems, 92, 718-731.
Akherfi, K., Gerndt, M., & Harroud, H. (2018). Mobile cloud computing for computation offloading: Issues and challenges. Applied computing and informatics, 14(1), 1-16.
Alt, R., & Reinhold, O. (2016). Social Customer Relationship Management. Grundlagen, Anwendungen und Technologien, Berlin, Heidelberg.
Angelova, B., & Zekiri, J. (2011). Measuring customer satisfaction with service quality using American Customer Satisfaction Model (ACSI Model). International journal of academic research in business and social sciences, 1(3), 232.
Antoh, E. F., Mensah, J. V., Edusah, S. E., & Enu-Kwesi, F. (2015). Analysis of the features and operations of microfinance institutions in ghana. International Journal of Economics, Commerce and Management, 3(11).
Berger, E., & Nakata, C. (2013). Implementing technologies for financial service innovations in base of the pyramid markets. Journal of Product Innovation Management, 30(6), 1199-1211
Bosco, J. (2017). Effects of integration of computerized system and digital finance services profitability & client satisfaction.
Cox, C. (2018). Autonomous exchanges: Human-machine autonomy in the automated media economy.Retrievedfromhttps://scholarworks.gsu.edu/cgi/viewcontent.cgi?article=1003&context=fmt_dissertations
Drigă, I., & Isac, C. (2014). E-banking services–features, challenges and benefits. Annals of the University of Petroşani. Economics, 14, 49-58.
Fakomogbon, M. A., & Bolaji, H. O. (2017). Effects of collaborative learning styles on performance of students in a ubiquitous collaborative mobile learning environment. Contemporary Educational Technology, 8(3), 268-279.
Galal Shehata, S. (2019). Customer Relationship Management (CRM) as an entrance to Application marketing excellence at swimming schools in Egyptian sport clubs. Assiut Journal of Sport Science and Arts, 219(2), 167-191.
Galazova, S. S., & Magomaeva, L. R. (2019). The transformation of traditional banking activity in digital.
Gant, A. (2012). Effects of mobile banking on microfinance institution performance in Kenya. Georgetown University.
Jegede, C. A. (2014). Effects of automated teller machine on the performance of Nigerian banks. American Journal of Applied Mathematics and Statistics, 2(1), 40-46.
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.
Kothari, C. R. (2008). Research methodology: Methods and techniques. (pp. 1-56). New Delhi: New Age International (P) Limited, Publishers (ISBN 10: 81-224-1522-9).
Mardiana, S. L., Faridatul, T., Herlindawati, D., & Mardiyana, L. O. (2020). The contribution of financial technology in increasing society’s financial inclusions in the industrial era 4.0. In IOP Conference Series: Earth and Environmental Science (Vol. 485, No. 1, p. 012136). IOP Publishing.
Mukamunana, S. (2019). Impact of Automated Teller Machine (ATM) Transaction on Financial Performance of Commercial Banks in Rwanda Case Study of Bank of Kigali (2015-2018) (Doctoral dissertation, University of Rwanda).
Muluka, K. O. (2015). Influence of digital banking on customer satisfaction: a case of national bank of Kenya Bungoma County (Doctoral dissertation, University of Nairobi).
Olannye, A. P. (2006). Research methods for business: A skill building approach. Lagos &Asaba.
Piirainen, L. (2017). Digitalization of the financial sector and change management: case Company: Bank X’s digitalization and change management.
Pytkowska, J., & Korynski, P. (2017). Digitalizing Microfinance in Europe. Microfinance Centre. Access: https://www. europeanmicrofinance. Org/sites/default/files/document/file/Digitalization-research-paper. Pdf.
Quaye, I., Abrokwah, E., Sarbah, A., & Osei, J. Y. (2014). Bridging the SME financing gap in Ghana: The role of microfinance institutions. Open Journal of Business and Management, 2(04), 339.
Rajan, P. (2018). Digital Banking Services: Customer Perspectives. Journal of Emerging Technologies and Innovative Research (JETIR), 306-311.
Ray, S., Paul, S., & Miglani, S. (2018). Innovation, Efficiency and Inclusion: Integration of digital technologies in the Indian microfinance sector (No. 366). Working Paper.
Rodriguez, C., Conrad, J., Davico, G. P., Lonie, S., & Denyes, L. S. (2019). A New Banking Model for Africa: Lessons on Digitization from Four Years of Operations (No. 137298, pp. 1-47). The World Bank.
Senthe, S. E. (2012). Transformative technology in microfinance: Delivering hope electronically. Pitt. J. Tech. L. & Pol'y, 13, i.
Sonono, B., & Ortstad, R. (2017). The effects of the digital transformation process on banks’ relationship with customers: case study of a large swedish bank.
Thalassinos, E. I., & Thalassinos, Y. (2018). Financial Crises and e-Commerce: How Are They Related. Available at SSRN 3330169.
Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of business research, 67(6), 1201-1208.
Vandeputte, P., De Toffol, B., & Peirce, R. (2017). The role of FinTechs in the business model of microfinance institutions in Western Europe: A qualitative study. Louvain School of Management, üniversite catholique de Louvain, Louvain, Belgium.
Wong, B. L., Khurana, M. P., Smith, R. D., El-Omrani, O., Pold, A., Lotfi, A., & Saminarsih, D. S. (2021). Harnessing the digital potential of the next generation of health professionals. Human Resources for Health, 19(1), 1-5.
Bosco, J. (2017). Effects of integration of computerized system and digital finance services profitability & client satisfaction.
Pytkowska, J., & Korynski, P. (2017). Digitalizing Microfinance in Europe. Microfinance Centre. Access: https://www. europeanmicrofinance. Org/sites/default/files/document/file/Digitalization-research-paper. Pdf.
Skinner, C. (2014). Digital bank: Strategies to launch or become a digital bank. Marshall Cavendish International Asia Pte Ltd.
Rajan, P. (2018). Digital Banking Services: Customer Perspectives. Journal of Emerging Technologies and Innovative Research (JETIR), 306-311.
DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2515
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.