Contribution of Mobile Banking on Customer Satisfaction in Commercial Banks in Rwanda, Case Study of Banque Popularie du Rwanda Plc, Part of Atlas Mara/ Headquarters (2016- 2020)

Nyetera Ernest

Nyetera Ernest PhD Scholar at Universidad Azteca- Azteca University, México

Keywords: Mobile banking, Commercial banks, Customer satisfaction

Abstract

The research analysed the “Contribution of Mobile Banking on the Customer Satisfaction in Commercial Banks in Rwanda. Case Study of Banque Popularie du Rwanda Plc. Part of Atlas Mara/ Headquarters (2016- 2020)”. Research hypothesis was H0: Mobile Banking does not contribute to the Customer Satisfaction in Banque Popularie du Rwanda Plc. Part of Atlas Mara/ Headquarters. Specific objectives were: to analyse mobile banking services provided by BPR Plc; to assess the extent to which customers are satisfied of Security, Responsiveness, and Ease of use of mobile banking application by BPR Plc; and to find out the challenges and solutions of mobile banking experienced by customers of BPR Plc. A sample of 100 respondents was selected from a total population of from 92,961 users of Mobile Banking at BPR Plc using Yamane’s formula. Statistical data was collected using a questionnaire and qualitative data was collected through interview. The major findings are the following: (i) Three main categories of mobile banking services provided by BPR Plc are Accounting information (x̄ =3.72); transactions services (x̄ =3.21); and support services (x̄= 2.47). In overall, mobile banking services are accessed at high level (overall x̄ =3.13). (ii) Customers are satisfied of Security, Responsiveness, and Ease of use of mobile banking application at high extent respectively by overall mean values of x̄ =3.50; x̄ =3.13; and x̄ =4.00. (iii) Main challenges of mobile banking with BPR Plc include: inability to apply for loan using mobile banking (x̄ =4.00); weak protection of accounts (x̄ =4.00); limited accepted amount for transfer per day (x̄ =3.29); temporally server failure (x̄ =3.12); and limited number of ATM (x̄ =3.02). In overall, 97% of respondents agreed that mobile banking at PBR Plc increase customer satisfaction. This leads to reject the Null Hypothesis and accept alternative hypothesis. (iv) The research recommends: to encourage all customers shifting to mobile banking; to provide additional options to limit access by simple user name and password; to strengthen security face possible cyber- crimes; to adjust the amount of money to transfer upon demand; to allow access to small loans though Mobile banking; to improve server maintenance to avoid service shortage; to spread agents in main centers to allow access to cash; and to increase ATMs to reduce the queue at bank.

References

1. Alafeef, M., Singh, D., & Ahmad, K. (2012). The influence of demographic factors and user interface on mobile banking adoption: A review. Journal of Applied Sciences, 12(20), 2082–2095.
2. Allied Market Research. (2020). Mobile Banking Market Size to Hit $1.82 Billion by 2026: Government Initiatives, retrieved from https://www.globenewswire.com/news- release/2020/03/16/2001107/0/en/Mobile-Banking-Market-Size-to-Hit-1-82-Billion-by- 2026-Government-Initiatives.html.
3. Banque Populaire du Rwanda. (24 July 2018). "History of Banque Populaire du Rwanda", Kigali.
4. Baptista, G., & Oliveira, T. (2015). Understanding mobile banking: The unified theory of acceptance and use of technology combined with cultural moderators. Computers in Human Behavior, 50, 418–430. https://doi.org/10.1016/j.chb.2015.04.024
5. Beck, T., & Cull, R. (2013). Banking in Africa. Policy Research Working Paper 6684. Washington, DC: World Bank. https://doi.org/10.1596/1813-9450-6684.
6. Biesok, G. & Wyród-Wróbel, J. (2011). Customer satisfaction — Meaning and methods of measuring, In book: Marketing and logistic problems in the management of organization (pp.23-41) Chapter: IIPublisher: Bielsko-Biała.
7. Chavan, J. (2013). Internet banking - benefits and challenges in an emerging economy. International Journal of Research in Business Management, 1(1), 19–26.
8. Davis, F. D. (1989), "Perceived usefulness, perceived ease of use, and user acceptance of information technology", MIS Quarterly, 13 (3): 319–340, doi:10.2307/249008.
9. Davis, F. D.; Bagozzi, R. P.; Warshaw, P. R. (1989), "User acceptance of computer technology: A comparison of two theoretical models", Management Science, 35 (8): 982–1003, doi:10.1287/mnsc.35.8.982.
10. Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar. S., & Hess, J. (2017). Global findex database 2017: Measuring financial inclusion and the fintech revolution. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1259-0.
11. Dimitriu, D. S. (2012). Customers Categories and Types of Banking Services. Annals of the University of Petroşani, Economics, 12(2), 2012, 127-134.
12. Fatihudin, D., Jusni & Mochklas, M. (2018). How Measuring Financial Performance, International Journal of Civil Engineering and Technology (IJCIET) Volume 9, Issue 6, June 2018, pp. 553–557.
13. Gomachab, R. (2018). The Impact of Mobile Banking on Customer Satisfaction: Commercial Banks of Namibia (Keetmanshoop), Journal of Internet Banking and Commerce, June 2018, vol. 23, no. 2.
14. GSMA. (2018a). The mobile economy 2018. London: GSMA.
15. Gurme, V. M. (2019). Issues & Challenges in Mobile Banking In Pune: A Customers’ Perspective, International Research Journal of Engineering and Technology, Volume: 06 Issue: 10, pp. 161-163.
16. Inam, T & Islam, B. (2016). Possibilities and Challenges of Mobile Banking: A Case Study In Bangladesh, International Journal of Advanced Computational Engineering and Networking, Volume- 1, Issue- 3, May-2013, pp. 20- 24.
17. Ivatury, G., & Mas, I. (2008). The early experience with branchless banking. Focus Note 46. Washington, DC: CGAP.
18. Jannat M, Ahmed I (2015) Factors influencing customer satisfaction of mobile banking services: a study on second - generation banks, European Journal of Business and Management, Vol.7, No.26, 2015.
19. Kabir, S. M. S. (2016). Sample and Sampling Designs, In book: Basic Guidelines for Research: An Introductory Approach for All Disciplines (pp.168-180) Edition: First Chapter: Publisher: Book Zone Publication, Chittagong-4203, Bangladesh.
20. Kozak, M. (2008). Finite and Infinite Populations in Biological Statistics: Should We Distinguish Them? Journal of American Science 4(1).
21. Lee, K. C., & Chung, N. (2009). Understanding factors affecting trust in and satisfaction with mobile banking in Korea: A modified DeLone and McLean’s model perspective. Interacting with Computers, 21(5-6), 385–392.
22. Mallat, N., Rossi, M., & Tuunainen, V. K. (2004). Mobile banking services. Communications of the ACM, 47(5), 42–46.
23. Muhammad S. A.; Ali, T.; Tariq, E.; Farwa, S. (2015). Impact of individualism and collectivism over the individual's technology acceptance behaviour: A multi-group analysis between Pakistan and Turkey. Journal of Enterprise Information Management. 28 (6): 747–768.
24. Mwai, C. (1 May 2019). "Equity Bank starts process to acquire 62% stake in BPR". New Times (Rwanda). Kigali.
25. Nassaji, H. (2015). Qualitative and descriptive research: Data type versus data analysis, Language Teaching Research 19(2):129-132, DOI:10.1177/1362168815572747.
26. Nimako, S. G & Mensah, A. F. (2014). Exploring Customer Dissatisfaction/Satisfaction and Complaining Responses among Bank Customers in Ghana, International Journal of Marketing Studies; Vol. 6, No. 2; 2014, pp. 58- 71.
27. Nyataya, I. P. K. & Ukwimanishaka, C. (2017). Mobile Banking Services Empowering Youth in Rwanda: A Case of Gisenyi Sector of Rubavu District, International Journal of Research in Sociology and Anthropology (IJRSA), Volume 3, Issue 4, 2017, PP 01-09.
28. Pankomera, R. & Greunen, D. V. (2018).Challenges, Benefits, and Adoption Dynamics of Mobile Banking at the Base of the Pyramid (BOP) in Africa: A Systematic Review, The African Journal of Information and Communication 21(21):21-49, DOI:10.23962/10539/26113.
29. Porteous, D. (2006). The enabling environment for mobile banking in Africa. For UK Department for International Development (DFID).
30. Sharma, S. K. & Al-Muharrami, S. (2020). Mobile Banking Adoption: Key Challenges and Opportunities and Implications for a Developing Country, In book: Emerging Markets from a Multidisciplinary Perspective (pp.75-86), DOI:10.1007/978-3-319-75013-2_7.
31. Shih, K.-H., Hung, H.-F., & Lin, B. (2010). Assessing user experiences and usage intentions of m- banking service. International Journal of Mobile Communications, 8(3), 257– 277.
32. Tam, C. & Oliveira, T. (2017). Literature review of mobile banking and individual performance, International Journal of Bank Marketing 35(1):pp. 1042- 1065.
33. Uwalaka, S. C. & Eze, P. (2020). Effect of Mobile Banking on Customers Satisfaction in Commercial Banks in Anambra State, International Journal of Innovative Social Sciences & Humanities Research 8(1):101-10