Effect of Mobile Banking on Financial Performance of AFRICAR Limited, Rwanda
DOI:
https://doi.org/10.53819/81018102t5438Abstract
The study examined the influence of mobile banking on the financial performance of AFRICAR Limited, a leading car rental and tour operating company in Rwanda. As Rwanda continues to advance toward a cashless economy, mobile banking platforms such as MTN Mobile Money have become increasingly important in improving business transactions, operational efficiency, revenue collection, and financial management. The study specifically assessed the effect of mobile banking on revenue generation, operational costs, and cash flow management at AFRICAR Limited. A descriptive research design using a mixed-methods approach was adopted. The target population comprised 100 purposively selected stakeholders, including finance staff, drivers, and regular customers. Using Yamane’s formula with a 10% margin of error, a sample size of 50 respondents was determined, while 46 valid responses were analyzed. Quantitative data were collected using structured questionnaires, while qualitative data were obtained through semi-structured interviews and documentary review of company financial records. The study was guided by the Technology Acceptance Model, the Unified Theory of Acceptance and Use of Technology, and the Technology Readiness and Acceptance Model. Quantitative data were analyzed using SPSS version 30 and Microsoft Excel 2016 through descriptive and inferential statistics, while qualitative data were analyzed thematically. The findings revealed that mobile banking positively influenced AFRICAR Limited’s financial performance by improving transaction accuracy, revenue collection efficiency, cash flow management, customer convenience, and financial record keeping. Correlation results showed strong, positive, and statistically significant relationships between financial performance and mobile banking (r = 0.973, p < 0.01), mobile payments (r = 0.981, p < 0.01), and digital platforms (r = 0.979, p < 0.01). Regression results further confirmed that mobile banking, mobile payments, and digital platforms had positive and significant effects on financial performance. Specifically, mobile banking had a significant effect (B = 0.854, β = 0.371, p = 0.004), mobile payments had the strongest effect (B = 2.114, β = 0.981, p < 0.001), and digital platforms also had a significant effect (B = 1.028, β = 0.372, p = 0.012). The regression model explained 97.3% of the variation in financial performance. The study concluded that mobile banking significantly enhances organizational efficiency, accountability, competitiveness, profitability, and sustainable financial performance at AFRICAR Limited.
Keywords: Mobile Banking, Financial Performance, AFRICAR Limited, Rwanda
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