Impact of Cashless Banking on Profitability of Commercial Banks in Rwanda. A Case of Bank of Kigali Plc (2017-2019)

Abstract

The information technology has globally impacted every feature of life, changing subsistence social orders into modernized social societies. This study focuses on the effect of cashless banking on profitability of commercial banks in Rwanda with reference to Bank of Kigali Ltd. The exploratory research design was used in this research to a total population of 150 staff from Bank of Kigali Headquarters with a sample of 60 respondents selected by a stratified random sampling. The information was collected using documentation technique and questionnaire while the analysis was done with the help of Statistical Package for Social Scientists (SPSS. 23). The findings revealed that from cashless banking transactions of web banking, mobile banking and electronic cards there were the increase of customer accessing bank services, improved funds transfers, easy payment of bills, banking service provision improvement and general customers satisfaction, reduction of customer queuing period, fast and efficient banking services, international banking promotion, cost effective services and secured services; reduction in operational costs, lower maintenance costs, easy access to withdrawals, increase in commission fee-based incomes and increased bank’s effectiveness hence more profitability.