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

The business environment is characterized by rapid changing technology liberalization and the market awareness by the customers. The Banks introduced the Automated Teller Machines (ATM) to facilitate their customers in order to perform the withdrawals and deposits transactions without any human intervention and increase the number of transactions and reducing the operating cost as well. The main purpose of this study was to examine the effect of ATM on the growth sustainability of Rwanda’s 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 bank’s top management. Descriptive statistics was used for testing the effectiveness of variables. Findings of the study asserted that there is a positive relationship between ATM services and growth and sustainability of Ecobank and that ATM services by Ecobank has contributed to the growth and sustainability of the bank. The study thus recommends that the administration of the bank should observe into the fact of using ATM transactions to watch over safety measures and risk management to enhance confidence on use of ATM technology amongst the clients.