Post on 13-May-2023
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GENERAL INTRODUCTION
0.1 Background of the study
In the world today’s, business environment is characterized by
increased competition, rapid changing technology economic
liberalization and customer awareness to market. In financial
institutions, automated teller machine (ATM) was introduced in
order to perform financial transactions without the need for
cashier or bank teller In Rwanda the development of money followed
the same path as elsewhere in world; the cash based system in
Rwanda is now gradually being replaced by the card –based system.
The first ATM was invented and patented in 1939. (By Luther
simjian). The government of Rwanda is putting as tool to achieve
its vision 2020. It is in this perspective that the modernization
of national payment system became prerequisite (essential). This
model was unsuccessful prototype, but it led the way to the first
Modern ATM created by James Good fellow in 1966. Because the
ability to connect to the bank via computer was not yet available,
access to these machines was only given to a select few bank
customers. The first ATM s to use a card with a magnetic strip was
patented in 1977.
Despite the fact that the machine existed this early; it was not
until the end of the 1980s that ATMs became common place in modern
banking these modern movels of technology were well received by
consumers because they made it possible for them to access money
from their credit card or debit card 24/7 hours per day with a
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quick and simple system. Also they could access money anywhere in
the world with the help of the ATM.
For all that ATM made certain aspect of life safer; it did make it
easier for counterfeiters and thieves to take advantage of
undoubtful consumers. After all, it only took having the card and a
PIN (personal identification number) to access all of somebody’s
funds. For this reason visa soon introduced the visa Risk
identification service, this computer –based program was capable of
identifying suspicious transaction and putting an end to them if
there was reason to suspect it was fraudulent. This type of system
is still in use today; with individual banks having their own
unique type of system is still today, with individual banks having
their own unique system to help keep you safe. In addition, many
countries are putting other protective barriers in place to ensure
the transaction placed on credit cards and debit cards are truly
authorized by the owner.
(www.ukfinancialoptions.co.uk,accessed,on10/07/2014) or
(www.google.en, accessed on 10/07/2014)
1. CHOICE AND INTEREST OF THE STUDY
There is three dimension or categories such as:
Personal interest
Social interest
Academic and scientific interest
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1.1Personal interest
By carrying out this study, with to improve my knowledge about the
benefits for using ATM services. This work is for us an important
intellectual exercise, practice and training that compare the
knowledge; we had on the research methodology and reality of field
research.
1.2 Social interest
On the social hand, this work has an incomparable utility because
it would be one guide of Rwandan people and the clientele of BK on
new technology that is the electronic banking secured. BK is going
to be to measure its performance as compare to the other banks
performance in areas advertisement
1.3 Academic interestThe Kigali independent university culture
requires that each and every student may conduct a field research
and write final report and present it in front of the panel. This
allows him/her to get bachelor’s degree. The study will enable me
to contribute scientifically to the development of science in the
Kigali independent university especially Gisenyi campus a copy of
the final report will remain the property of the ULK library and
will be used as documentation by future researchers interested in
the same domain and will serve for reference of student who will
engaged in studied on growth commercial bank through ATM service
/good service like this one
2. DELIMITATION OF THE STUDY
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This current research will be delimitated in time, in area and
field
2.1 In time: The work focuses on the period from 2008-2013, which
is five years. I think that period is sufficient /enough to verify
the research hypotheses.
2.2 In space: In space, this research will be carried out in Rubavu
district (Gisenyi) western province in BK
2.3 In domain
The study is in the domain of marketing
3. PROBLEM STATEMENT
Globalization and information and communication technology (ICT)
took the world by storm and this has posed great challenges to the
banking industry Aruba (2008). Information and communication
technology (ICT) has changed not just the business world but also
the world we live in. it has changed the way things are done that
today no matter what you plan to do, whether you will work with
people or money, with words or numbers, with technological
breakthrough and advances in telecommunications, speed of equipment
and the use of computers, bankers can now use these some links to
transmit data.
This gave rise to electronic banking which is simply the
application of information technology (telecommunications and
computers) to transmit data from one point to another. The
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electronic delivery of banking services has grown rapidly in
popularity that every bank now realizes that electronic banking has
become a basic element of today’s financial services delivery. The
banks have also deployed the ATMs to other locations such as
supermarkets, tertiary institutions, hospitals, hotels restaurant
and so on. There is no doubt that the introduction of ATMs by
banks is to reduce operation costs and to ensure that the customers
are better served. But the ATM is not without challenges because
there are always people out there who would want to reap where they
did not sow The infrastructures that support the machines are
susceptible to abuse, misuse and failure in many ways, resulting in
financial loss as a result of fraud, unauthorized use of customers
personal identification number and loss of customers confidence.
ATM fraud has taken an alarming proportion and most customers are
now afraid to use their ATM cards. There is no doubt that there
must be collusion between some bank staff and fraudsters for such
fraud to succeed. This is one of the reasons customers are fret
about the security of on-line transactions. While on the hand, some
customers have not helped matters because of their carelessness or
fraudulent nature. All these have given rise to ATM challenges in
the banking industry. (www.netplaced.accessed,0n 14/7/2013
Electronic banking was found to be the relevant system needed to
solve those problems faced by non-electronic banking system(to
spend time on line s before being tendered the service robbery done
in doing transactions, the need to have cash in hands for every
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service needed and language shortfalls found from some of the
bank employees and customer which do not authorize them to
communicate effectively and efficiently (BNR,2003:52)
All these importance of electronic banking system its challenges as
new need of the researcher to determine the degree of
understanding, reliability and uses of this system as well as its
potentiality to drive payment and receipts from cash to cards have
motivated the researcher to conduct his research on ‘’ THE
CONTRIBUTION OF ATM SERVICE ON GROWTH IN COMMERCIAL BANKS’’
regarding to use of ATM card, a case study of BK
Face to those problems meet in various banks of Rwanda it push to
ask the following questions.
1. What is the level of customer satisfaction for using of ATM at
BK?
2. What is the contribution of ATM service on the growth in BK?
4. RESEACH HYPOTHESES
4.1 DEFINITION
The hypothesis is defined as “the response proposed to the
questions asked upon the topic. It is formulated in clear terms
such that a response might be provided through observation and
analysis. Even more or less accurate, it helps to select the
observed facts, interpret them as well as verify them according to
the written theory ( GRAWIRTZ M.2001:35)
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The following hypotheses try to give answer to the question asked;
The level of customer satisfaction of using ATM is higher to
the BK/Rubavu.
The use of ATM card contributes positively to the growth of
BK/Rubavu branch.
5. RESEACH OBJECTIVES
The work that is scientific must be supported by certain number of
objective s to which it can valorized such as aspect of the work
that is why is why the research have put our work under global
objective and specific objective
5.1 GLOBAL OBJECTIVES
The global objectives of this study are to develop a case study
with a view to describe and understanding the contribution of ATM
card service on growth of bank of Kigali.
5.2 SPECIFIC OBJECTIVES
To determine the level of customer satisfaction of the use of
ATM at BK.
To determine the contribution of ATM service impact on
growth of bank
To provide some suggestions and recommendation based on the
findings
6. METHODOLOGY
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The methodology is defined as the study of good users of methods
and technique in given research to verify the hypothesis of
research and achieve at the objectives assigned on in my research,
I will use different techniques and methods as follows;
6.1 TECHNIQUEs
The technique is the way of carrying out a particular task,
especial the execution or performance of an artistic work or
scientific procedure through skills or ability in a particular
field or efficient way of doing or achieving
Something, These technique can attach on data collection and
information that allow the research to put together the base
materials (Rwigamba, 2004).
6.1.1 THE INTERVIEW TECHNIQUE
An interview is an oral questionnaire where the investigator
gathers data through direct verbal interaction with participants.
Instead of written responses, the subject gives the needed
information verbally in face to face relationship where ideas are
exchanged. KOTTAR (1990:97) defines interview as: << a method of
collecting data that involves presentation of oral verbal stimuli
reply in terms of oral verbal responses. This methods can be used
Through personal interview and if possible through telephone
interview>> this method enables me to collect completive data to
those collected with the questionnaire.
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6.1.2 QUESTIONNAIRE TECHNIQUE
The questionnaire technique is a carefully designed instrument for
collecting data in accordance with the specifications of the
research questions and hypotheses. It consists of a set questions
to which the subject responds in writing. A questionnaire
therefore is a form consisting of interrelated questions prepared
by the researcher about the research problem under investigation,
based on the objectives of the study. The questionnaire was
administrated to each of the sample population
6.1.3 SAMPLING TECHNIQUE
GRINNEL and WILLIAM (1990:132) defined sampling as the process of
selecting people or case to take in a research study. LAURENCE
(1990:7), in the some context, adds that a sample is a group of
people representing only a portion of population one behalf of the
entire customer of BK Rubavu branch. A few of them will be selected
because it is difficult to find everybody and interview all of
them.
6.1.4 THE DOCUMENTARY TECHNIQUE
This technique brought me satisfactory information through reading
different document such as: The dissertation, report, reviews,
newspaper, discussion, conference and other document technique
enables us to find much information by using different document s
concerning the topic.
6.2 METHODS
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A method is intellectual operation through which a discipline seeks
to attain a certain end, that is , discovery or evidence of a truth
or is a set of intellectual operations which enable to analyze ,to
understand and to explain the analyzed reality or else to structure
the research (GRAWITZ,2001) following methods were used:
comparative method. Historic method, analytical method.
6.2.1 COMPARATIVE METHOD
The comparative method is used almost in all sciences in order to
find out similarities and differences among element .it also
enabled researchers to detect other relent causes between factors
that generate similarities or between other things.
6.2.2 DIACHRONIC (historical method)
This method very important because it is facilitate to explain the
fact in start up to current situation of BK bank Gisenyi branch
and it seeks to understand the past by reading documents, relics
and interviews. Data collected is analyzed and interpreted.
6.2.3 ANALYTICAL METHOD : This method enables a systematic analysis
of information and giving more details on a case situations of data
collected on ATM cards service; this method will enable me to
analyze data from field.
7. WORK SUBDIVISION
My work is organized into three chapters it has to start with
introduction presenting significance of the study, delimitation,
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statement of the problem as hypothesis ,objectives of the study,
methods and techniques used and organization of the study.
Chapter 1. Entitled “conceptual and theoretical framework or
literature review”, deals with the definition of key concepts and
presents the theories related to the study.
Chapter 2.entitled” Deals with the level of customer satisfaction
of the BK for using the ATM card service. It verifies the first
hypothesis.
Chapter 3. Deals with “assesses the contribution of ATM service on
the growth in commercial bank from BK “
CHAPTER ONE: CONCEPTUAL FRAMEWORK AND LITERATURE REVIEW
This part contains the definition of key concepts of this work, the
literature, the historical and theory on bank credits.
1.1 Definition of key concepts
This part includes the etymology and origin of used words in this
work from books, internet, library and other useful resources.
1.1.1 Service
In economic, a service is an intangible commodity, More
specifically, services area intangible equivalent of economic
goods.
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Service provision is often an economic activity where the buyer
does not generally, except by exclusive contract, obtain exclusive
ownership of the thing purchased. The benefits of such a service,
if priced, are held to be self-evident in the buyer’s willingness
to pay for it. Public services are those society as a whole pays
for through taxes and other means (Valerie zeithaml,A Parasumaran,
Leonhard berry, 20000). By composing and orchestrating the
appropriate level of resources, skill, ingenuity, and experience
for effecting specific benefits for service consumers, service
providers participate in an economy without the restrictions of
carrying inventory(stock) or the need to concern themselves with
bulky raw materials. On the other hand, their investment in
expertise does require consistent service marketing and upgrade in
the face of completion which has equally few physical restrictions.
Many so-called services, however, require large physical structures
and equipment, and consume large amounts of resource, such as
transportation services and military (Valerie zenithal, a.
parasumaran, Leonhard berry, 2000).
1.1.2 GROWTH
Growth refers to an increase in some quantity over time. The
quantity can be:
Physical (e.g. , growth In height, growth in an amount of
money)
Abstract (e.g. , a system becoming more complex, an organism
becoming more mature).
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It can also refer to the mode of growth, i.e. numeric models for
describing how much a particular quantity grows over time
(reinhart&rogoff, 2009).
1.1.3 COMMERCIAL BANK
The term used for a normal bank to distinguish it, from an
investment bank. After the Great Depression, the U.S. congress
required that banks only engage in banking activities, whereas
investment banks were limited to capital market activities. Since
the two no longer have to be under separate ownership, some use the
term ‘’ commercial bank’’ to refer to a bank or a division of a
bank that mostly deals with deposits and loans from corporation or
large businesses (KEVIN B.2007).
1.1.4 BANK
The name of bank derives from the Italian word ban co.<<
desk/bench>>, used during the renaissance by Florentine bankers,
who used to make their transactions above a desk covered by a green
tablecloth .however, they are traces of banking activity even in
ancient times.
In fact, the word traces its origins back to the ancient Roman
Empire where money lenders would set up their stalls in the middle
of enclosed courtyards called Marcella on a long bench a bancu,
from which the words ban co and bank are derived. As a money
changer, the merchant at the <<Banka<< did not so much invest money
as merely convert the foreign currency into the only legal tender
in Rome (www. Wikipedia.org/bank).
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A bank is a financial institution licensed by a government; its
primary activities include borrowing and lending money. For example
banks are important players in financial markets and offer
financial services such as investment funds. In some countries such
as Germany, banks have historically owned major stakes in
industrial corporations while in other countries such as the United
States, banks are prohibited from owning non-financial companies.
The level of government regulation of the banking industry varies
widely, with countries such as Iceland, the united kingdom and
united states having relatively heavier regulation of the banking
sector , and countries such as china having relatively heavier
regulation ( includingstrictregulationsregarding the level of
reserves)(www.wikipedia.org/bank.
1.2 THEORETICAL FRAMEWORK
1.2.1 ORIGIN OF ATM
ATM card (visa and credit cards) came into existence in 1976 as a
replacement of what was known as bank America card. And in 1986ATM
card (e.g. visa card) began an affirmation with ATMs (automatic
teller machine) some known as DAB an gab which allows the card
holder to withdraw cash at any given time.
This operation system is dedicated to serve its members both
cardholders and merchants by facilitating public payment 24hours a
day 7days a week at customer’s dispositions. By using a pos system
( point of sale0 which is installed in a place of business where
the merchant is supposed to have an account in the bank. This
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terminal card enables the card to purchase and pay the card with at
least a maximum of 200.000 frws per day (KANFAN, 2009
1.2.1 TYPES OF ATMs
ATMs broadly fall into two categories. They are briefly explained
below:
1. Lobby ATMs
These are the ATM that are installed in branch lobbies of the
concerned bank.
2. Through-the-wall- ATMs
These are the ATMs that are installed in wide range of locations
spread over the country and sometimes overseas too. They are
located not only in bank branches but also in shopping malls,
alongside departmental stores and supermarkets, and in small .mini-
branches which are frequented by more and more people. They are
found in place ranging from railway stations to shopping malls,
airports, and even on broad ship, with link between the ATM and
host computer being maintained by radiotelephone.
3. ATMs mechanism
Anyone who is desirous of using the ATM facility is to go through
the following steps:
Customer of a bank making application for the ATM card;
Manager of the bank-branch issuing the ATM CARD, fixing the
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Customer to gain access to the ATM by swiping the card through
a card-swipe located outside
Verification of the card opening of the lobby door, the
entrance lobbies are particularly useful for security reason
as they let the customer complete the transaction without any
potential mugger or thief being in the immediate vanity.
Customer to insert the ATM card in the insertion point of the
ATM
Customer to type the confidential PIN the process of ATM
The ATM to depict the list of function waiting to be carried
out for the customer, such as cash withdrawals etc
Customer to selects the relevant operation to be perfumed in
the ATM
The ATMs carrying out the relevant operation as selected by
the customer.
1.2.3 ATM FUNCTIONS
The major functions performed by the ATM worldwide are of two types
as described below:
1. Basic functions
Basic functions are:
A) Cash withdrawal
B) Balance enquiry(whether displayed on screen or
printed out),
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C) statement ordering facility;
2. Additional functions
Additional functions are:
a) Cheque book request facility;
b) Deposit, the facility being confined to customers of the
financial institutions running the ATM in question which is
not usually available via a share ATM network
c) Funds transfer facility ,which usually involves a
customer –initiated transfer of funds to prearranged
destination, such a utilities company account to pay a bill or
to another customer account;
d) PIN change facility;
e) Passbook up date facility;
f) Dispensing traveler’s cheque, although a fairly uncommon
facility, available at international airports.
In additional to the above ATM can also be used to provide for more
function than are currently available on them. For example, they
could be used for a wide range of communication purposes as
emergency measure to alter policy, ambulance or fire services.
Similarly, sharing of ATMs might be possible in future among banks
and other service providers too such a airlines to given the
proliferation in the use of smart cards which would links up all
participating parties and growth of the virtual banking
revolution(www.banking.about.com. Accessed on, 1/6/2013)
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1.2.4 INTERNATIONAL ATM
International ATM great facilitate and ease the travel plans by
making it possible for a traveling customer to withdraw funds in
dozens of countries in local currency, given that his account back
home will stand the transactions. Thus, international ATMs sharing
have made a significant contribution towards mobility around the
world. ATMs have made funds withdrawals possible internationally.
Traditionally travelers around the world used to carry traveler’s
cheques obtained from their banks by making payment of money in
their currencies. Traveler’s cheques have always been among the
more unsatisfactory financial instruments. Obtaining travelers
cheques requires payment of commission charge to buy them.
Moreover, they are not safe as anyone can forge the signature and
obtain payment since it is not required that the customer should
show the passport.
Internationally ATM sharing does away with an idea of exchanging
it, or losing the money while on travel, the advantage offered by
ATM is simply excellent. Internationally cash machine and the money
can be withdrawn whenever needed.
1.2.5. ATM around the word
ATMs have established a dominating presence in the world’s banking
industry and also in the social infransturess of towns and cities.
With the growth in the shared ATM the facility of mobile banking is
expected to catch up by leaps and bounds as such a mechanism will
result in overall cost saving to benefit the consumer . All the
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shopping malls may have the shared ATM installed in their premises,
which can be accessed be cardholders of all banks .worldwide
highest concentrations of ATM occur in countries where the payment
culture is primarily cash-based. This is especially true of the Far
East, and it is therefore not surprising that japans has such ATMs
are located inside the bank premises and therefore are often
inaccessible outside banking hours.
1.2.6. BENEFIT OF ATM CARD TO THE merchant ( BK )
1. Time saving
It speed up the transactions and daily operations that include
compensation set-up between a client and his or her bank or
between the banks that share the same host which would cost them a
long time to settle those settlements using the manual cheques
system. This is because all transactions and set offs takes only
twenty four hours and this is done through a clearing house which
is the national bank of Rwanda (BNR) however the operation is
somehow manual because all the above operations are nor
automatically done because it takes twenty four hours to settle
different bank operation.
2 .Increase of customer
The use of ATM cards has increased the level of customers to BK
because it has created double attraction for instance it links both
businessmen and client to client to work together through the use
of ATM cards and both parties must be users of such ATM cards as
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visa and among others in order to facilitate them to withdraw an
settlement of their transaction
3. Safety to the bank
Many banks BPR inclusive have been facing a problem of fraudulent
actions practiced by their client or sometimes by their staff like
poor entries, and inappropriate transactions. Consequently leading
to a loss to the bank, but Through using ATM cards payment system,
this has created security as result of using sophisticated
controllable machines such as automatic teller machine ( ATM) and
point of sale (pos).
4. Segmentation benefits
ATM cards for instance visa and credits being a segmented product
only to those who possess an account in a particular bank it has
enabled the bank to benefit from such services as opening up a new
profitable market for the bank exploiting existing infrastructures,
and automating administration. Similarly, processing a transaction
at POS is such less expensive than processing either cash or a
paper (cheque) lower cash holdings, opportunities and also enables
and also enables and speeds up bank commercial activities as
customers and businessmen can burden logs and bugs of cash paper
money. (www.simtel.org.domestic. ATM cards transaction flow,
accessed on 2/6/2013)
1.2.7 DEVELOPMENT OF BANK’S ATMs
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The development of banking ATM( automatic teller machine) industry
has received much attention in recent years, mainly due to growing
ATM network. Recent scholarship has studied whether its growth has
maximized consumer welfare .The concern is rooted in the network
effects that depend on total number of users or customers
patronizing banking ATMs. Because the form of banking ATMs can be
regarded as network effects. The deposit-holding consumers of one
bank may potentially use their ATM cards at ATMs of competitor’s
institutions. ATM cards and ATMs form a system of complementary
components which produce account transactions. There are two type
of fees when a card-holder of one banks conducts a transaction
using an ATM owned by another ,one of which is a surcharge levied
by the banks owned the ATM , the other of which is a foreign fee
levied by the card-holder own bank. This involves the partial
incompatibility in that the foreign ATM use for account –holder is
imposing A TM fees from transaction despite the compatible
technologies (knittel and sting, 2008, 124)
1.2.8 AUTOMATED TELLER MACHINE:
ATM cards are the most convenient form of withdrawing money. It is
a magnetic card having a secret PIN (Personal Identification
Number) which is kept to be confidential by the user to prevent it
from misuse. One Can easily get money withdrawal by simply
inserting ATM cards into ATM with confidential pin code. These
Cards are also known as ATM- CUM DEBIT card. Nowadays ATM is serving
more than just withdrawing Machines. A minimum balance of Rs.1000
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is compulsory to withdraw. ATM card of any bank can be access In
any bank’s ATM
s1. ATM CARD ATM Machine
Figure 1.
2. How to Avail ATM Facility
This facility is for everyone who has Savings, Current or
Cash Credit account.
To get ATM Facility on your account you have to fill up
form provided by bank.
ATM card holder has to maintain minimum balance of Rs.1000
No any additional charges for this facility.
3. How ATM Works a. Swipe Card: The card reader in the
machine reads and stores the bank account information
Recorded on the magnetic strip of the card.
b. Enter Pin: The machine converts PIN into an encryption and
sends it to the host processor compares The PIN with the recorded
information for verification. /
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c. Request Amount: ATM sends the request to the host processor
which forwards it to the networks (Visa/Master Cards) for approval.
d. Account Check: The network asks the bank to authorize
withdrawal which is done after checking .The customer’s account.
e. Saying Yes: An electronic fund transfer takes place from the
bank to the host processor account. The host sends an approval code
to the bank.
f. Bill Count: An electronic eye counts out bills from cash
cartridges located either at the bottom or behind the computer
screen and pushes it out of the cash slots.
4. Other Uses of ATM Card:
24 hours Service
Cash withdrawals
Changing ATM PIN
To know about available balance
Paying routine bills, fees (utilities, phone bills, etc)
Mini bank statement (last 10 transactions)
One can deposit cheque
s5. Protecting Your Card
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i. Keep your card in a safe place to avoid damage.
ii. Memorize your Personal Identification Number (PIN). Never
write the PIN down on anything in our wallet or on the card
itself. Never tell your PIN to any other person, whether to
family member, office staff.
iii. When selecting a PIN, avoid numbers and letters that relate to
your personal information. For example, don’t use your
initials, birthday, telephone or vehicle number, if you have
such a number, contact your bank and get a new PIN issued. In
most of ATM, you can change your ATM pin yourself.
iv. Immediately report a lost or stolen card to your financial
institution.
v. To help guard against fraud, keep your ATM receipts until you
check them against your monthly statement.
5. Safety Tips at the Time of Withdrawal
i. Observe your surroundings before using an ATM. If the machine
is obstructed from view or poorly lit, visit another ATM.
ii. Take a friend with you - especially at night.
iii. Have your card out and ready to use.
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iv. Shield the screen and keyboard so anyone waiting to use the
ATM cannot see you enter your PIN or transaction amount.
v. Put your cash, card and receipt away immediately, Count your
money later, and always keep your receipt.
vi. If you see anyone or anything suspicious, cancel your
transaction and leave immediately. If anyone follows you after
making a transaction, go to a Crowded, well-lit area and call
the police.
vii. When using an enclosed ATM that requires your card to open the
door, avoid letting strangers Follow you inside.
viii. Check with your financial institution to determine what the
daily limit of funds that can be withdrawn from your account
is.
ix. Use swap ATM machine, Machine which take ATM card inside are
risky and some time they ate your ATM card, due to input of
wrong ATM pin, withdrawal amount given is more than balance
and for other reason.
x. Use your own Bank machine, where ever possible, the reason is
that if there is a problem in transaction then problem can be
solved by your bank directly but if other bank’s ATM is used
then to solve dispute you have to contact two bank branches.
xi. If your card jammed in ATM, report this immediately to the
bank
1.2.9 Thinks you need to know about ATM card
Do not store you ATM card with your PIN, memorize the pin and
destroy it.
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The ATM card must be inserting in the right way. If the card
is not positioned right, it will not get into the card slot on
the machine. Most ATM have on arrow that point the directions
as to how to insert the plastic
The ATM card must be valid and current the ATM cards have an
expiry date on the face of them when the card is expired; it
will be ejected when you attempt to use it.
Does not use an ATM when there is a person too close to you
they may be able to see your account balances and follow you.
Do not trust your pin number to another person protect your
ATM card at all costs
Where you have a joint account, each of the account signatories
should be issued with their own card to access the cash machine
1.3. BANKING SERVICES
The simplest definition of banking services would seem to be a wide
range of financial services, including;
Payment services
Deposit and lending services
Investment, pension and insurance services
E- banking (Barbara; 2006:55) ,national consumer
council;2012:264)
Performance
Performance is one of the key terms organization”” performance””
from a process view , performance means the transformation of
inputs for achieving certain outcomes. The company inform about the
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relationship between minimal and effective cost, between effective
cost and realized output (efficiency) and between output and
achieved outcome (effectiveness) of certain activities. (Richard ET
al.2009)
1.4 ATM
An unattended electronic machine in a public place, connected to a
data system and related equipment and activates by a bank customer to
obtain cash withdrawals and other banking services. Also called automatic
teller machine, cash machine, also called money machine.
An automated teller machine or automatic teller machine (ATM) is an
electronic computerized telecommunications to access their bank
accounts, order or make cash withdrawals( or cash advances using a
credit card 0 and check their account balances without the need for a
human bank teller (or cashier in the UK). Many ATMs also allow people
to deposit cash or cheques, transfer money between their bank account,
top up their prepaid accounts or even buy postage stamps.
On most modern ATMs, the customer identifies him or herself by
inserting a plastic card with a magnetic stripe or a plastic smart
card with a chip that contains his or her account number. The customer
then verifies their identity by entering a pass code, often referred
to as a PIN (Personal identification Number) of four or more digits.
Upon successful entry of the PIN, the customer may perform a
transaction. If the number is entered incorrectly several times in a
row (usually three attempts per card insertion). Some ATMs will
attempts retain the card as a security precaution to prevent
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unauthorized user from discovering the PIN by guesswork. Captured
cards are often destroyed if the ATM owner is not the card issuing
bank, as non-customer’s identities cannot be reliably confirmed.
ATM: is automatic teller machine, the most visible and perhaps most
revolutionary, element of virtual banking revolution is the cash
machine as it more popularly known. The use of ATMs has greatly
changed the lives of modern men and women. the introduction of ATMs
service has come to change the entire gamut of the way the banking and
financial services are operated in the world ATM are known for their
speed and convenience giving 24 Hours access to the bank customers to
operate their bank account in the physical environment with the help
of machines. ATMs have given an edge to the banks and financial
institutions in efficiently carrying out their operations. ATMs
provide the advantage of accessing the account of customers any time
anywhere an automated teller machine is a computerized devise that
provides the customers of a financial institution with the ability to
perform financial transaction without the need for a human cleck or
bank teller(mike fenton,2009)
1.4.1 DEBIT CARD
Debit card are also known as check cards. Debit card look credit cards
or ATM cards but operate like cash or a personal check. Debit cards
are different from credit cards. While a credit is a way to ‘’pay
later’’ a debit card is way to ‘’pay now’’ when you use a debit card,
your money is quickly deducted from your checking or saving account
Debit cards are accepted at many locations, including grocery stores,
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retail stores, gasoline stations, and restaurants.. You can use your
card anywhere merchants display your card’s brand name or logo. They
offer an alternative checkbook or cash.
1.4.2 ADVANTAGES OF ATM card
To the customers
ATMs provide 24hours, 7days a week and 365 days a year service
Service is quick and efficient
Privacy in transaction
Free from errors
On networking,carholder can access cash and service at any
location regardless of where he maintains account
Wider flexibility in withdrawals
Fund transfer across the branches / bank
Anywhere banking facility To the banks:
Alternative to extend banking hours
Alternative to new branches and to reduce operating expenses.
ATMs can be located in any convenient location in the city
Relieves bank employees to focus on more analytical and
innovative work
Increased market penetration.
1. The BK VISA Classic Credit Card Advantages:
• Worldwide acceptance at over 22 million merchant outlets and over
2
Million ATM locations all over the world.
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• Emergency cash from VISA ATMs located worldwide including over
250 locations in Rwanda.
• Prestige as a VISA cardholder and build up of a recognized credit
history
• Free credit period up to 55 days.
• Convenient option to pay up to as low as 25% of total outstanding
balance.
• Automatic credit enhancement on renewal, subject to satisfactory
usage.
• Supplementary cards for spouse and (or) family members,
2 .The BK VISA Classic Credit Card Benefits:
A. BK Visa Classic Credit Card Pay: Especially in-built financing
feature to
Enable you to make large purchases through your Classic card.
B. BK Visa Classic Credit Card Buy: Specially arranged discounts at
carefully
Selected merchant outlets make your spending francs go further.
Periodically, BK VISA CLASSIC CREDIT Cardholders will enjoy
discounts and enhanced utilities by special arrangements with
certain merchants and
Shops. So to choose a card that is well worth your go, please call
4455
Or email BK@BK.rw to find out more on how to get a BK Visa Classic
Credit
1.4.3 DISADVANTAGES OF ATM card
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1. Cash withdrawals are restricted to certain amount as fixed by
the bank and notified to ATM cash holder
2. Cash dispensation is restricted to certain denomination of
currency notes usually 50/100/500
3.ATM could perform only particular function for other functions,
the customer has to visit the branch or direct one’s enquiries to
the concerned call centre (rajesh;2009;313).
Lack of human help to resolve problems
Higher cost due to ATM fees
Lack of security due to lighting
Limits on withdrawals all kinds of banking transactions
Ease of account access with stolen card/stolen information
Lowered opportunities to build customer relationships.
(cohen;2005;483).
Like of robbery when you leave the ATM
The ATM can break down or run out of cash
Fees charged to use ATMs of other banks can be expensive
1.4.4 Functions of Commercial Banks
1. Accepting Deposits:
Accepting deposits is one of major function of commercial bank; It
is the business of bank to accept. Deposits so that he can lend it
to other and earn interest. Basically, the money is accepted as
deposit for safe Keeping Banks also pay interest on these deposits.
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To attract depositors banks maintain different types of Accounts.
These are as following.
a) Fixed Deposit Accounts: The account which is opened for fixed
period by depositing amount is
Known as fixed deposit account. The money deposited in this account
cannot be withdrawn before Expiry of period. A high rate of
interest is paid on fixed deposits.
b) Current Deposit Account: Current deposit accounts are mostly
opened by businessmen and Traders who withdraw money number of
times a day. Banks does not pay interest on these types of Account.
The bank collects certain charges from depositors for services
rendered by it.
c) Saving Account:
Saving account is most suited for those people who want to save
money for Future needs. These types of account can be opened with a
minimum initial deposit. A minimum balance has to be maintained in
account as prescribed by bank. Some restrictions are imposed on
Depositor regarding number of deposit withdrawal and amount to be
withdrawn in given period.
d) Recurring Deposit Account:
The purpose of these accounts is to encourage public for regular
saving, particularly by fixed income group. Fixed amount is deposit
is deposited at regular intervals for a fixed term and repaid on
maturity.
2. Grant of Loans and Advances
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Besides accepting deposit, the second most important function of
commercial bank is advancing of loan to the public. After keeping
certain part of deposits received by bank as reserve and the rest
of balance given as loan. The different types of loan and advances
are given by bank as follow.
a) Call Money: There are generally short term credits that range
from one day to fort night. There are even one nigh call money
advances made available to bank with the help of this market. The
rate of Interest depends upon the conditions prevailing in money
market.
b) Overdraft:
In over draft, a customer can withdraw money from his current
account and available Balance below zero. When the amount withdrawn
is within the authorized limit then rate of interest Charged at
agreed rate. Overdraft is allowed normally against the security of
negotiable Instrument and credit worthy customers without security.
c) Cash Credit:
In cash credit, Bank advance loan against the customer current
asset or personal Guarantee. The borrower has option to withdraw
the funds as and when required to extent of his Needs but he cannot
exceed the credit limit allowed to him. The cash credit limit
depends on the Debtor’s needs and as agreed with the bank. The bank
charges interest only on money withdrawn from by them.
d) Discounting of Bills:
Under this type of lending, Bank pay amount before due date of bill
after
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Deducting certain rate of discount or commission, the holder of
bill get money immediately without Waiting for the date of
maturity, If bill of exchange dishonored on due date the bank can
recover the Amount from the customer.
e) Direct Loan: A loans granted for a fixed maturity period more
than one year. Loans are usually secured against some collateral
security; the borrower can withdraw entire money through cheques.
The interest is charged on entire amount of loan. Repayment of loan
either in installments or in lump Sum.
3. Credit Creation
Credit creation is also an important function of commercial Bank.
The process of credit creation automatically Performed when bank
accept deposits and provide loans Prof Sayers says, “Banks are not
merely supply of money but in an important sense, they are
manufacturers of money”. In this process, customers deposit their
money in bank. Bank keeps certain amount of deposit as cash reserve
and rest of balance given as loan and advances. Banks not required
keeping the entire deposits in cash. The amount of loan does not
give directly to borrower. The borrower opens account and then bank
deposit money in that account. Here, bank’s lends money and process
of credit creation starts. The current cash reserve ratio is 6% in
2011.
4. Secondary Functions:- These are as follow:-
a. Growth Sale and Purchased of Securities:
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On the behalf of customer, commercial bank sale and purchase Of
the securities of private companies as well as government
securities.
B.Transfer of Funds
Commercial Bank also provide facilities to transfer funds from one
place to
Another place in form Bank draft, cheques, mail transfer etc.
c. Collection and Payment of Credit Instrument:
Commercial Bank collect and make payment on behalf of their
customers Commercial Bank collect and pay negotiable instruments
and also pay rent, income tax fees, insurance premium etc.
d. Locker Facility:
Commercial Banks provides locker facility to their customers. We
can keep Gold, silver and important documents in locker.
e. Letter of Credit:
Letter of credit certified the credit worthiness of their
customers which issued by commercial banks.
f. Collection of Information: Commercial Banks also collect the
information relating to Industry, Trade, commerce which made
available to their customers.
g. Traveler’s Cheque ad Credit Card: Commercial Banks issue
traveler’s cheques and credit cards to their customers. They can
travel without fear of theft and loss of money. Credit card is used
to make payment for purchases so that individual does not have to
carry cash.
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h. Foreign Exchange: Commercial banks provide facility to their
customers dealing in foreign Exchange; Commercial Banks are
authorized dealers in India.
I. Educational Loans: Commercial Banks also provide educational
loan to student for higher studies at reasonable rate of interest.
j. Consumer Finance: Commercial Banks provide consumer finance
facility for purchase consumer durables like televisions,
refrigerators etc.
k. Automated Teller Machine: Now days with the help of ATM, we can
deposit or withdraw money from our account any time.
1.5 CUSTOMER
A person’s company or other entity which buys good and service
produced by
anotherperson,companyorotherentity( www.investorwords.com/5877/custo
mers.htm . accessed, on28/04/2013) there are so many definition of
customer and the following are some of them : SANDRA(2009) defines
a customer as ,, the most important person ever this office in
person or by mail,, A customer is a person’s organization that buys
something ( service or goods) from a shop or business. Customer is
also a person who brings us his wants and needs, and it is our job
to handle them profitably to him and ourselves,, ( PHILIPH
HOTLER,1998) then, there are two types of customers: internal and
external customers.
1.5.1 CUSTOMER SATISFACTIONS
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Is a term frequently used in marketing? It is a measure of how
products and services supplied by a company meet or surpass
customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals. It is seen as a key
performance indicator within business and is often part of a
Balanced Scorecard. In a competitive marketplace where businesses
compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of
business strategy. Within organizations, customer satisfaction
ratings can have powerful effects. They focus employees on the
importance of fulfilling customers' expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and
profitability.... These metrics quantify an important dynamic. When
a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective.
Therefore, it is essential for businesses to effectively manage
customer satisfaction. To be able do this, firms need reliable and
representative measures of satisfaction. In researching
satisfaction, firms generally ask customers whether their product
or service has met or exceeded expectations. Thus, expectations are
a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed
and will likely rate their experience as less than satisfying. For
this reason, a luxury resort, for example, might receive a lower
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satisfaction rating than a budget motel—even though its facilities
and service would be deemed superior in 'absolute' terms." The
importance of customer satisfaction diminishes when a firm has
increased bargaining power. For example, cell phone plan providers,
such as AT&T and Verizon, participate in an industry that is an
oligopoly, where only a few suppliers of a certain product or
service exist. As such, many cell phone plan contracts have a lot
of fine print with provisions that they would never get away if
there were, say, 100 cell phone plan providers, because customer
satisfaction would be far too low, and customers would easily have
the option of leaving for a better contract offer. There is a
substantial body of empirical literature that establishes the
benefits of customer satisfaction for firms. This literature is
summarized by Mittel and Freneau (2010). They summarize the
outcomes in terms of customer behaviors, immediate financial
outcomes such as sales and revenues, and long-term outcomes based
on the stock market www.freemarket Wikipedia.org
1.6 HOW TO WITHDRAWALS MONEY FROM AN ATM
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Insert your ATM card
Enter your PIN
Select ‘’withdrawals’’
Several amount will be displayed on the screen or enter theamount you want by pressing the numbered buttons.
Choose the account you want to withdrawals if asked
Take your cash,,,Take your card,,,,,Take your withdrawals slip
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PARTIAL CONCLUSION
As conclusion of first chapter, we have been use different types of
documentation which treat about ATM banking service and clarify key
concepts in general and in particular in Rwanda where the bank of
Kigali. Rendered service quick to its customers in orders to
improve the customers satisfaction through quick services and
reliable.
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CHAPTER TWO: THE LEVEL OF CUSTOMER SATISFACTION FOR USING ATM AT
BANK OF KIGALI
2. INTRODUCTION
This chapter aims to present, and analyze and discuss data
collected from the field. The data related to the use of ATM
service on growth in bank of Kigali and the challenges facing by
customers these electronic devices. The current data verify the
first hypothesis formulated as follows: the level of the use ATM
at BK bank performance by using the ATMs card service. The chapter
begins by short presentation of BK, demographic profile of
respondents, data presentation and interpretation and finally the
work ends.
2.1. PRESENTATION OF BANK OF KIGALI (RWANDA)
2.1.1 HISTORY
The Bank of Kigali was started in 1966 to provide commercial
banking services to individuals, small businesses, and large
corporations. The bank was 50 percent owned by Banque Belgolaise
before the Government of Rwanda purchased that shareholding in
2007. Subsequently, the government sold minority shareholding to
other corporate entities, including the Social Security Fund of
Rwanda and the National Post Office of Rwanda. In 2011, there were
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plans for the government to divest more of its ownership in the
bank by floating 25 percent shareholding on the Rwanda Stock
Exchange (RSE). On 21 June 2011, the Rwandan Capital Market
Advisory Council approved plans for the bank to float 45 percent of
its shares on the RSE and list its shares on the RSE. Trading in
the shares of the bank started on 30 June 2011.
In December 2012, regional media reports indicated that the bank
was in the middle of an expansion into neighboring Uganda. In
February 2013, the bank received regulatory approval to open an
office in Kenya.
The Bank of Kigali is the largest commercial bank in Rwanda by
assets. As of December 2014, its total assets were approximately
US$704.54 million (RWF: 482.62 billion). The shareholders' equity
stood at approximately US$130.73 million (RWF: 89.55 billion). In
2010, the bank was ranked among the top fifteen commercial banks in
East Africa. The move will make BK the second local company to be
privatized through an IPO after government successfully sold, to
the public, 25 of 30 percent of the shares it owned in Bralirwa,
the country's largest brewery.
2.1.2 BACKGROUND OF BANK OF KIGALI RWANDA
1. Geographical location of BK/Rubavu
BK/Rubavu branch is located at Gisenyi city in western province,
Rubavu district, Gisenyi sector, Nengo cell, nearest kivu beach
before WASAC office /Rubavu
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Source: http://www.BK.rw,visited on 12/08/2013
BK /Rubavu branch started its activity in 1978 in the main
objective of collecting deposit and providing won to their clients.
2. Ownership
As of December 2013, the ownership of the bank's stock stood as
depicted in the table below:
Table 1: ownership of BK (Rwanda)
Ranj2k Name of Owner Percentage Ownership
1 Government of Rwanda 29.6%
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2 Social Security Fund ofRwanda 25.1%
3 Internationalinstitutionalinvestors 16.4%
4 Retail investors 12.2%
5 Local institutional investors8.8%
6 Regionalinstitutionalinvestors 6.2%
7 Employees and directors 1.6%
8 Other state-owned entities 0.10%
Total 100.00%
Source: Result of our survey (August 2015)
2.2 OBJECTIVE OF BK RWANDA
2.2.1 Mission, vision and values of BK Rwanda ltd /Rubavu branch
2.2.1 Mission Our mission is to be leader in creating value for our
stakeholders by providing the best financial services to businesses
and individual customers, through motivated and professional staff.
2.2.1.1 Vision
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Bank of Kigali aspires to be the leading provider of the most
innovative financial solutions in the region.
2.2.2 Values
Customer focus
Integrity
Quality
excellence
2.3 METHODOLOGICAL APPROACH
In the following pages the researcher is going to give up details
on the methodology used to collect data based on the questionnaire,
the responses and their analysis are indicated below by the use of
tables
2.3.1 PERIOD OF SURVEY
The survey was conduct in August 2015. The questionnaires were
administered to a sample of BK customers chosen at random. The
total number of the respondents has been fixed to 95 persons. To
find a sample, we used the determinative table of the professor
ALIN BOUCHARD. Does this table stipulate that when the universe is
infinite that is so say 10,000 people one takes a sample of 96
people considering a margin of mistake of 10% (bouchard,A )
Since in our research, the universe is finished of 15,500 customers
from, we will apply this formula for the corrected size.
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NC¿ N∗nN+n
nc= corrected sample,
N= population
n= size of corresponding sample to 96 While apply this formula
for our case, we find the following
NC=15,500∗9615,500+96
=148800015596
=95
This size of the sample that we investigated was classified into
parts which are followed:
We had sample size for customer which are 95
We have sample of 26 staff equally to 26
Total sample size was 121 people. Regarding to respondents was show
in form of statistical table and percentages.
2.4 IDENTIFICATION OF RESPONDENT
The identification of the respondent is done considering the
following aspects: age, sex, and educational level.
2.4.1 IDENTIFICATION OF RESPONDENTS BY AGE
The variable “age” has a great importance because it can influence
a person’s opinion on the service he receives. Thus, an adult does
not appreciate things the same way than a person who is still young
with no much experience as banking customer. This variable allowed
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me to know the age group of the groups of the respondent as we can
see in the table below
Table 1.1 Distribution of respondents by age
Age Number %
18-30 25 27.5
30-40 50 52.7
40-50 12 13.3
Over 50 8 6.5
Total 95 100
Source: Result of our survey 2015
Regarding to age , the above table shows that 27.5% of the
respondents are between 18 and 30 years old ,52.7% are between 30
and 40 years old , 13.3% are between 40 and 50 years old and 6.5%
are over 50 years old. And 95% these were card holders all of them
2.4.2 Gender of respondents
The variable gender allowed identifying the number of men and women
who participated to this survey .their details are summarized in
the table below:
Table 1.2 Distribution of card holders by gender
Gender Number %
Male 70 73.8
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Female 25 26.2
Total 95 100.0
Source: Result of survey, 2015
On the graphic, we have the following presentation:
Figure 1. Distribution of respondents by Gender
male female010203040506070
Gender
Gender
Source: table 1.2
From this table, we find that the majority of respondents were
male73.8% against 26.2% for women, During the survey, male are into
business than female and therefore more are into business than
female and therefore more are into business than female and
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therefore more male seem to believe in the venture of the new
technology in modern banking.
2.4.3 Educational level
The educational of respondents was selected and is reflected in
summary form in the following table:
Table 1.3 Distribution of card holders by educational level (visa
card)
Educational level Number %No schooling 1 2Primary level 16 21.1Vocational training 10 15.8High school level 21 20University level 44 41.1total 95 100Source: Result of survey, 2015Table 1.3 above shows that the most
number of cardholders has university level of education which
represented by 41.1% only 2 %of the card has no schooling and only
21.1% for primary level and 15.8% represent cardholders having
vocational training and 20% for high school level. This implies
that early adopter of ATM banking system tend to be better-educated
people. The reason behind this is that they have some knowledge on
his innovative payment method to read and search on it.
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Figure 2. Distributions of respondents by educational level
no schooling
primary level
vocational training
high school level
university level
010203040
Educational level
Educational level
Source: 1.3 above shows that the most number of cardholders has
university level of education which represented by 41.1% only 2 %of
the card has no schooling and only 21.1% for primary level and
15.8% represent cardholders having vocational training and 20% for
high school level This implies that early adopter of ATM banking
system tend to be better-educated people. The reason behind this
is that they have some knowledge on his innovative payment method
to read and search on it.
2.5 Type of cards mostly used by the cardholder
Table 1.4 Types of cards mostly used by the card holder
Type of banking
system
Number of
respondent
%
Master cards 5 5.2Visa horizon cards 95 94.7
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Any other 0 0Total 95 100Source: Result of our survey, 2015
The table above shows that the cards is mostly used visa horizon
card as it is seen that all cardholders from different location
responded that they use visa horizon card. In addition , this is
shown by the fact that all 90 respondents that they use visa
horizon card, which is represented by 94.7% where as master and
others the research through the cardholders might be using are
represented by 5%,which is represent by 5,2%
Figure 3. Types of cards mostly used by the card holder
Master cards
Visa horizon cards
Any other0
20406080
100
Most usedcards
most usedcards
Source: from table 1.4
That shows the cards is mostly used visa horizon card as it is seen
that all cardholders from different location responded that they
use visa horizon card. In addition, this is shown by the fact that
all 90 respondents that they use visa horizon card, which is
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represented by 94.7% where as master and others the research
through the cardholders might be using are represented by 5,2%
2.6 Interview of bank Kigali/ Rubavu branch employees
This is the analysis of responses provided by 26 staff of the bank
exactly in consumer banking department from the sample, the
responses and their analysis are shown here shown here under the
use of table and graphics.
2.6.1 Type of cards mostly issued by banks
Table 1.6 Type of cards mostly issued by banks
Types Number of
respondent
%
Visa card 26 100
Master card 0 0
Any other 0 0
Total 26 100
Source: Result of our survey, 2015
The table above shows the type of cards issued by BK and it shows
that it is only visa card that it issued as all the sample of 26
employees indicated visa card which represents 100% of the total
sample of the cards. So the master card or any other cards that the
research through could be issued by bank are represented by 0%.
Figure 4. Of type of cards mostly issued by bk
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Type of cards mostry issued by banks
Visa cardMaster cardAny other
Source: table 1.6 shows the type of cards issued by BK and it shows
that it is only visa card that it issued as all the sample of 26
employees indicated visa card which represents 100% of the total
sample of the cards. So the master card or any other cards that the
research through could be issued by bank are represented by 0%.
2.7 Level of acceptance of this card in relation to others
Table 1.7 level of acceptance of this card in relation to others
frequency Number of respondent%
Less than 20% 0 0
21%-30% 0 0
31%-40% 1 3.8
41%-50% 12 45.8
above 13 50.5
Total 6 100
Source : our survey,2015
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The table above shows the level of acceptance of visa horizon card
(the card which is mostly issued by accepted above 50% as it has a
share of 50, 5%
Figure 5. The level of acceptance of this card in relation to others
Level of acceptance of this card in relation to other
less than 20%21%--30%31%-40%41%-50%Above
Source: table1.7 shows the level of acceptance of visa horizon card
(the card which is mostly issued by accepted above 35% as it has a
share of 50, 5%
2.7.1 Admiration of electronic banking
Table 1.8 Admiration of electronic banking
Option Number of respondent %
Yes 26 100
No 0 0
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Total 26 100
The table shows if Rwandese accepts ATM payment cards and the
options shows that they do accept payment by the use of cards as
well the sample of 26 employees responded yes option represented by
100%.
Figure 6. Shows admiration of electronic banking
Admiration of electronic banking
yesNo
Source: from table 1.8 that shows if Rwandese accepts ATM payment
cards and the options shows that they do accept payment by the use
of cards as well the sample of 26 employees responded yes option
represented by 100%.
2.8 issuance facilitates bank operation
Table 1.9 issuances facilitates bank operation
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Option Number of respondents %
No 0 0
Yes 26 100
Total 26 100
Source; Result of our survey, 2015
It seem that electronic cards facilitate banking operations as all
6 respondent accepted yes option, which is represented by 100%.
When the researcher wanted to know why respondents are saying that,
they respondent that the electronic banking makes banking halls
less crowded and the workers can spend more time or energy doing
core-banking dues.
Figure 7. Issuances of cards facilitate bank operation
Yes No0
1
2
3
4
5
6
7
Issuances of facilitates bank operations
If issuances of cards facilitate bank operations
Source: table1.9
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this line It seem that electronic cards facilitate banking
operations as all 6 respondent accepted yes option, which is
represented by 100%. When the researcher wanted to know why
respondents are saying that, they respondent that the electronic
banking makes banking halls less crowded and the workers can
spend more time or energy doing core-banking dues
Table 2.9 Level of using ATM card at bank
Question: The level of using ATM cards?
convenience Strongly
agree
agree disagree Strongly
disagree
Total
Frequency 78 15 2 0 95% 82.1 15.7 2.1 0 100
Source: Result of our survey, 2015
The above table shows the respondent how level of use ATM card in order
to growth bank. 78 respondent 82% said that they were strongly
agree that they used ATM card in order to minimize cost, 15 respondent
15% said that they were agree to this regard and0 respondent 0 % said
that they were strongly disagree that , this means that this system
charge high cost.
Figure8. Show the level of using ATM cards at bank
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strongly Agree
Agree
Disagree
StronglyDis Agree
0
20
40
60
80
Level for using ATM
Level of ATM used
Source: Table 2. Show the level of using ATM cards at bank which is
means that level of use ATM card in order to growth bank . 78
respondent 82% said that they were strongly agree that they used ATM
card in order to minimize cost, 15 respondent 15% said that they were
agree to this regard and0 respondent 0 % said that they were strongly
disagree that , this means that this system charge high cost.
2.10 Growth of users of ATM
Introduction of automated teller machine ( ATM) and the plastic cards
have given the banking customers the facility of around the clock 24h/7
a week in banking , the table below to understand the growth of users
of ATM for the period between 2009-2013’’
1.4.1 Evaluation of users of ATM card in BK from 2009-2013
Table 1.5 Number of customer
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Period 2009 2010 2011 2012 2013Number of
customers
2071 2371 3092 4793 8135
Evaluation
Of customer%
14% 23% 55% 69%
Source: Result of survey, 2015. According to the table above shows
that the users of ATM cards are increasing year to years based on
being up dated to the important of using ATM card which means that in
2009 the number of customer was 2071. In the following year arrive to
2371 of users of ATM card and in 201the number of customers was 8135
of users. Regarding to the result shown above describes how the
customer of BK knows the important of using ATM card on their daily
activities.
2.11 Level of customer satisfaction with ATM banking system
Table1.5.1 Level of customer satisfaction with ATM banking system
Level of
satisfaction
Number of
respondent
%
Very satisfied 24 25,2
satisfied 60 63,1
neutral 6 6,3
dissatisfied 3 3,1
Very dissatisfied 2 2,1
Total 95 100
Source: Result of survey, 2015
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From the table above 63,1% of the respondents were satisfied were
satisfied with ATM banking services, where 25,2% of respondents
were very satisfied with ATM banking services,6,3% of respondents
were neutral(not satisfied, not dissatisfied) with ATM banking
services,2,1% of respondents were very dissatisfied with electronic
banking services and 3,1% were dissatisfied with electronic banking
services.
Graphic 6. Level of customer satisfaction with ATM banking system
very satisfied
satisfied
neutral
dissatisfied
very dissatisfied
0102030405060
Level of customer satisfaction
level of stisfaction with ATM bk
Source: table 1.5.1 the level of satisfaction with ATM banking system these
graphic shows that above 63% of the respondents were satisfied were
satisfied with ATM banking services, where 12% of respondents were
very satisfied with ATM banking services, 9% of respondents were
neutral (not satisfied, not dissatisfied) with ATM banking
services, 8% of respondents were very dissatisfied with electronic
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banking services and 7% were dissatisfied with electronic banking
services.
The majority says that customer satisfaction is higher because to
use withdraw by ATM easily and quick services it help bank in their
activities task rather than waiting on the outlet/ teller and
reducing queue. Let is to look forward level of customer
satisfaction instantly
Level one of customer Satisfaction “A level one customer is a
customer who is not satisfied with the company. In this case the
customer satisfaction is at minimum. The customer is likely to
leave the company and never return. He can also badmouth the
company. There are several reasons in which a customer might be
converted to a level one customer such as the deliveries not
happening on time, the service is not proper, or over commitment
being given by the sales force. Lack of features in the product
generally does not result in a level one customer satisfaction.
This is because if the features were lacking, the customer would
not buy the product at all. Thus when there are a high number of
level one customers, you can understand that the problem is from
within the company and not from outside.
Level 2 to Level 4 of customer satisfaction” Most of the companies
fall in this level. This is because this is the average level of
customer satisfaction. In this case the customer might be happy
with the brand but there is no guarantee that he will stick back
with the brand. The customer does not badmouth the company but at
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the same time he does not also spread a positive word about the
product. The customer would not be brand loyal but he would be
ready to switch brands whenever there is a new offering the market.
Thus these are not the customers on whom you can rely for a long
term. Obviously each and every company will have at least 60% of
the customers who fall in this level of customer satisfaction.
Level five of customer Satisfaction“Level five of the customer
satisfaction level represents a group of customers who are highly
satisfied customers. They are unlikely to shift the brand or the
product and they have a high emotional bond with the brand. Take
shoes such as Adidas, Nike or Reebok. These are companies which try
to increase the number of highly satisfied customers as much as
possible. This is because the highly satisfied customer is likely
to spread a positive word of mouth. After that looking these level
of customer satisfaction means that the level of customer
satisfaction at BK has in level five which means that are highly
satisfied customers from that services of bank like ATM services.
PARTIAL CONCLUSION
In this chapter, we are examining the first hypothesis which says
that the level of customer satisfaction by using ATM at bank of
Kigali/Rubavu we have observed that the use of ATM is one of the
Greatest recent improvement in the bank services.ATM services it
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has increased the accessibility to money as long as the client
has his/her card can go to the ATM irrespective of time, it has
supported reduces queues in the banks which speed up also
transaction speed It has greatly increased security of people
walking with money because one can move with a card that has
millions in it without any problem but you can’t walk with liquid
money more security, like one that has an electronic.
By the way, the level customer satisfaction o of bank it shows
that there are positive perceptions of customers towards the ATM
service card in bank of Kigali to growth the bank comes from it
is easy and it simples their transaction. According to customers
ATM provide full access to services and when they don’t waste
time queuing for cash at bank branch faster than writing a cheque
Otherwise ATM has positively improvement growth at bank
performance supported operation 24 hours (around clock) 7 days a
week fulfill the principle of any time and everywhere banking as
to day’s world. Time is the most valuable asset a person has and
the common saying that time is money nowadays. the majority says
that customer satisfaction is high because to use withdraw by ATM
it was easily and quick services rather waiting on the
outlet/teller and reducing queue
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CHAPTER 3. THE CONTRIBUTION OF ATM SERVICE ON THE GROWTH IN
COMMERCIAL BANK’’
Introduction
In this chapter aims at verifying the second hypothesis of the
study, the researcher is going to assess the contribution of the use
of ATM on the growth of BK/Rubavu branch.
3.1. Growth of savings
‘’BK RWANDA LTD’’ RUBAVU branch offers to its customers several
options to save their money, to this end, deposit have
experience change as follows;
Table 3.1 Evaluation of saving ATM from 2009 to 2013 in RWf
2009 2010 2011 2012 2013
Ordinary saving 479635491 672910980 788173060 978989987 979768992
Saving performed
using
BK based service
152657850 354786254 476658698 589878856 765890889
Total saving 632293341 102769723 126483175 156886884 174565988Variation in % 30,4 56,6 40,2 44Contribution of
ATM at
30,8% 31,2% 33% 33,8% 46,40%
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BK in GrowthSource: financial statement of BK /Rubavu branch from 2009 to 2013
In the above table, there is a growing trend in the customer’s
savings. The total amount of saving was 632293341 in 2009 this
amount increased by in 30, 3% in 2010 by in 30, 4% in 2010.
Concerning the savings performed using ATM base services in 2009
such savings represent 30.8% of total saving this percentage
increasing in 2013 to became 46.4% and 33,8% in2012. These result
shows that the use of ATM based service in saving is going
increasing.
The Graphical presentation of that increasing is given below:
Figure10
2009 2010 2011 2012 20130
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
Evaluation of saving trough atm from 2009 -2013
EVALUATION OF SAVING TROUGH ATM FROM 2008 to 2013
Source: from table3.2 in financial statement of BK 2009-
2013published in 2013
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3.2 Growth of credit between 2009-2013
As we have seen in preceding pages, customers adhere to a financial
institution in order to have their needs met in terms of savings and
loans. Therefore, to achieve positive results, BK Rubavu must give
credit to its customers since they are paid by a certain interest
rate. The table below allows understanding the growth of credits for
the period between 2009-2013.
TABLE 3. 3 Growth of credit from 2009 to 2013
2009 2010 2011 2012 2013Total credit 1 743 194 959 1 823 916590 1 957 087 9752 268 421 7143 285 987 962Variation in % 4,6 7,3 17.7 55.3
Source: financial statement of BK/Rubavu branch 2009-2013
This table shows that amount allocated to credit by BK Rubavu branch has
experience very positive growth between 2009 to 2013. The growth
continued in 2010 to 2013. Comparing 2009 and 2010, there is a change of
4, 6% while between 2010 and 2013, it was 53% the contribution made by
BK to the growth of credit is that they have increased the savings. And
as we know, the savings are collected in order to give credits to
customers. So, the loan portfolio increases as the savings increase
Figure 11. Growth of credit between 2009 to 2013
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2009 2010 2011 2012 20130
1
2
3
4
5
6
7
Evaluation of credits
Evaluation of credits
Source: from table 3.3
Table 3.5 the state the level of time withdraw of using ATM
cards businesses.
Question: state the level of time withdraw of using ATM cards
convenience Strongly
good
good Low good Very low good Total
Frequency 62 20 13 0 95
% 65 21 13 0 100
Source: Result of our survey 2015
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The above table shows how people use ATM because of saving time. 62
respondent 65% said that they used of ATM in order to save time, 20
respondent, either 13 good that there is time saving in using ATM
cards ,only 13 persons very low good . Few people said they used the
system not to the reason of saving
3.3 TABLE: Usage of ATM card
Q.Do all customers use ATM card? We taken sample of 26 staff of
employees
Option Yyes NNo Total
frequency 126 110 226
percentage 661,5 338,4 1100
Source: Result of our survey, 2015
The above table shows the customers use ATM card,16 respondent61 said
that they used ATM and 10 persons 38,4 said that they did not use ATM
card. This means that many customers use ATM card in order to do not
spending their time.
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