The relationship between electronic-funds transfer and the financial performance of commercial banks at Ecobank Burundi. A cross-sectional study.

Abstract

Background

As commercial banks increasingly adopt ATM services, debit and credit cards, e-cheques, and cashless systems, it remains essential to understand how these innovations contribute to financial performance in emerging economies such as Burundi. The study examined the relationship between electronic funds transfer (e-funds transfer) and the financial performance of Ecobank Burundi.

Methodology

A cross-sectional study design was used. The study employed a predominantly quantitative approach, but also incorporated a qualitative component. The study population consisted of 58 participants. A sample size of 49 respondents was selected using simple and purposive sampling techniques. Quantitative data analysis mainly consisted of descriptive statistics (means and standard deviations) and inferential statistics (Spearman correlation, coefficient of determination, and regression). Content analysis was used to analyze qualitative data.

Results

The sample comprised 52.5% males, the majority aged 30–39 years (46%) and holding bachelor’s degrees (57.4%). Univariate results revealed high adoption of e-funds transfer services, with mean values above 3.5 across all indicators. Respondents strongly agreed that Ecobank provides debit cards (M=4.77), 24-hour ATMs (M=4.50), cashless banking (M=4.41), and secure e-funds transfer systems (M=4.22). Financial performance was also rated highly, with reduced non-performing loans (M=4.58), increasing annual income (M=4.54), and growing asset base (M=4.48). Bivariate analysis indicated a significant positive correlation between e-funds transfer and financial performance (rho = .669, p = .022). Regression results confirmed that e-funds transfer significantly predicts financial performance (β = .567, p < .01), with the model explaining 70.3% of the variation (Adjusted R² = .703).

Conclusion

The study establishes that increased adoption of e-funds transfer enhances efficiency, reduces fraud, promotes customer convenience, and strengthens overall financial performance.

Recommendation

Ecobank Burundi should aim to expand ATM coverage, reinforce cybersecurity measures, and continuously upgrade digital banking platforms to sustain performance gains.