The Impact of Information Communication and Technology Utilization on the Financial Performance of Microfinance Institutions in Rwanda Case Study: Reseau Interdiocesain De Microfinance (Rim) Ltd, Rwanda (2011 -2015)

Abstract

The study analyzed the impact of ICT utilization on the financial performance of microfinance institutions in
Rwanda with case study of Réseau Interdiocesain de microfinance (RIM) Ltd undertaken within 5 years (2011
-2015). The study adopted the use of descriptive survey using both qualitative and quantitative methods for a total
sample size of 132. Purporsive and simple random simpling was used for this purpose. Primary and Secondary data
were collected and thene analyzed using SPSS version 16.00. The study found that ICT has been introduced and used
about 5 years and above. The study found that ICT impact firstly on financial sustainability and profitability (65.8%),
secondly on financial efficiency and productivity (23.7) and finally on portfolio quality (5.3%). ICT utilization have
a high influence to the RIM Ltd.’s financial performance compared to the previous situation.
The correlation results imply that ICT usage has a positive impact on financial sustainability and profitability as they
move in the same direction (R=0.502). The strength of the impact was found to be low due to the low investments in
ICT among microfinance institutions.