Financial services and customers’ welfare in Rwanda: (case of BPR Muhima branch)

Abstract

Presently, financial institutions are being observed as a means to support the member’s welfare to be improved and find solution for their problem of missing initial capital investment and other loans in the favorable conditions. Therefore, the current problem is that customers of BPR need basic capital for the creation of some business activities develop their land and get more resources to support their activities. This research was carried out with the main objective to have baseline information on the relationship of financial services and welfare of customers and also this research had the specific objectives such as: To assess perpetual view of the customers of BPR on the services offered by the bank, to evaluate the effect of services delivered by BPR on customers’ welfare, to identify if there exists a relationship between the role of services delivered by BPR and welfare of the customers. The researcher used a both analytical and descriptive design based on both qualitative and quantitative data while the population was 90 employees of BPR/Muhima branch. Questionnaires were used as the data collection techniques while data were collected from both primary and secondary sources. The collected data were presented using tables while analysis and interpretation was done based on the percentages and frequency of the collected data. The research findings revealed that the documents required when asking loan are always available as confirmed a mean of 4.76 and standard deviation of 0.45. The question that assessed if assurance to get credit is reasonable was outward with a mean of 4.77 and standard deviation of 0.41, the question that assessed if repayment is enough was outward with a mean of 4.68 (strong) and standard deviation of 0.58. This means that some few respondents had different perceptions. (Less than 5% said that repayment is not enough) Online banking of BPR/Muhima branch is regularly available was perceived with a mean of 4.56 (strong) and standard deviation of 0.89. The results show that many respondents had the different opinions (few of them said that some times on line services are not available) about online banking of BPR/Muhima branch. The statement that assessed if the customers get mini-statement when they need was perceived with a mean of 4.78 and standard deviation of 0.41, the statement that assessed if the customers check their account history when they need it was perceived with a mean of 4.68 and standard deviation of 0.47, the research shows that the many respondents had the same opinions about the statement.