Effect of Electronic Banking System on Operational Efficiency of Commercial Banks in Rwanda - A Case Study of Eco Bank

Commercial banks in Rwanda because according to NBR Report (2008) there were delays in payment of checks among banks; time wasted in banks as people line in queue waiting for service, errors as a result of manual work and fraud related cases were common. As a result some banking institutions in Rwanda were making losses because of the various risks that they were exposed to traditional system. The researcher achieved this by use of three specific objectives namely; to analyze the effect of internet banking on operation efficiency of Eco bank; to analyze the effect of mobile banking on operation efficiency of Eco bank and to examine the effect of electronic cards on operation efficiency of Eco bank. The research is of benefit to the researcher, Eco bank and JKUAT. The researcher reviewed both theoretical and empirical literature on the effect of electronic banking on operation efficiency of Eco bank. The researcher used descriptive method of study based on qualitative and quantitative approach in order to get better analysis of the study. The population size is 242 and sample taken was 151 respondents. Both primary and secondary sources with their relevant tools like questionnaire and documentary analysis in order to come up with required data was used. The data was processed by SPPS software but analyzed using frequency/percentages, mean and standard deviation. Eco bank uses Pay bill system: This was indicated by a strong mean of 4.4834 and heterogeneity standard deviation of.45747. This implies that Eco bank uses Pay bill system. Eco bank uses Quick response system: This was indicated by a strong mean of 4.4967 and homogeneity standard deviation of.55226. This implies that Eco bank uses Quick response system. Thus it can be concluded that mobile application contributes to positive operation efficiency of Eco bank as the findings above suggests. Findings show that Electronic mobile banking system has improved banking operation in Rwanda. EcoBank uses mobile banking system for money transfer and bank account control, Findings further shows that they use Mobile banking system like mob application system to transact with clients, express cash system, Pay bill system and quick response system. Electronic mobile banking system has improved banking operation in Rwanda. Eco Bank uses mobile banking for money transfer, purchasing, account control, etc. . Findings further shows that they use Mobile banking system like mob application system to transact with clients, express cash system, Pay bill system and quick response system.