The Effect of ATM on the Growth Sustainability of Commercial Banks in Rwanda; A Case Study of ECOBANK Rwanda

Despite all the efforts by the banking industry, the main challenge is to increase satisfaction of customer. Customers have more options in choosing the banks than the past. Every bank is trying to retain and maintain their valuable customers at any cost, for sustainability. Banks are adopting different software and technological aspects to make their customers satisfied which costs banks big sums of their revenues on the other hand. This therefore prompted the researcher to institute the effect how growth sustainability of commercial banks in Rwanda is affected by the retail banking. Ecobank Rwanda was used as a bank of reference and years from 2012 to 2017 was largely used a time limit. The main purpose of this study was to examine the effect of retail banking on the growth sustainability of Rwandas commercial banks. The study adopted both descriptive and quantitative research designs. Questionnaires were addressed to 20 respondents selected from among the Ecobank staffs and an interview was held with 4 respondents from the banks top management. Descriptive statistics was used for testing the effectiveness of variables. Findings of the study asserted that there is positive relationship between ATM services and growth and sustainability of Ecobank. All statements that were listed by the researcher, it was learnt that only one statement was undecided and while other statements were agreed and strongly agreed. Research found that 100 % of ATM offers by Ecobank has been contributed to the growth and sustainability of Ecobank. ATM decrease the use of paper on bank transaction which is environmental friendly; with ATM, transaction data is stored in organized database and that ATM provides an advantage of saving time and its reliable. In ensuring ATM safety, the administration of the bank should observe into the fact of using ATM transactions to watch over safety measures and risk management and enforce to escape future dangers that could affect the banks growth sustainability and the clients at large.