Exploring Customer Satisfaction through Electronic Banking Adoption in Rwandan Commercial Banks: A Case Study of Banque Populaire du Rwanda

 1Jeannine Uwimana and 2David Nyambane

1Department of Business Management Mount Kenya University

2Faculty of Business and Management Kampala International University, Uganda



This study examines the relationship between electronic banking and customer satisfaction at BPR branches in Nyamirambo and Muhima. The research aims to identify the influencers influencing electronic banking adoption, evaluate customer satisfaction levels, and establish the correlation between usage and customer contentment. The study involved 89 respondents from 850 users, using Slovin’s method to ensure a representative sample. Demographic insights revealed a predominance of male customers aged between 26-30 years, with bachelor’s level education. Most respondents had under a year’s experience with electronic banking, highlighting its accessibility and ease for transactions. The study found that electronic banking fulfilled the majority of banking needs, leading to increased satisfaction levels among bank clients. However, the research emphasizes the need for increased awareness about mobile banking products due to lower adoption rates. Recommendations include disseminating information about electronic banking services, elucidating their functionality, and highlighting their benefits to enhance adoption rates and maximize customer satisfaction.

Keywords: Electronic Banking Adoption, Customer Satisfaction, Rwandan Commercial Banks, Banque Populaire du Rwanda, Information Technology in Banking


Technology is making a tremendous impact upon service companies in general and the financial services sector is no exception. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamentals importance and concerns to all banks and indeed a prerequisite for local and global competitiveness in banking industry [1]. As a result of this technological improvement business environment in financial sector is extremely dynamic and experience rapid changes and demands banks to serve their customers electronically. The evolution of e-banking started from the use of Automatic Teller Machine (ATM) and Finland is the first country in the world to have taken a lead in e-banking [2]. According to [3], Electronic banking is the automated delivery of new and traditional banking products and services directly to the customer through the electronic communication like computers, ATM‟s and internet websites. It also means the provision of retail and small value banking products and services through electronic channels. [4], define Internet banking as an internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. With the exception of cash withdrawals, Internet banking gives customers access to almost any type of banking transactions at the click of a mouse. However, Electronic banking is a 24-hour access to cash through an automated teller machine (ATM) with Personal Identification Number (PIN) for the purpose [5] or direct deposit of paychecks into checking or saving accounts. However, internet banking includes the systems that enable financial institutions customers, individual or businesses access accounts, transact business or obtain information on financial products and service on public or private network including internet while it is further defines internet banking as the act of conducting financial intermediation through the internet. Many banks worldwide including developing countries like Uganda use computers and computerized equipment like ATM’s which is the perfect example for such equipment whose purpose is to provide banking services to customers at their convenience and such banking service include cash withdraws, balance enquiries, mini bank statement and many others [6]. The use of the Internet as a new alternative channel for the distribution of financial services has become a competitive necessity instead of just a way to achieve competitive advantage with the advent of globalization and fierce competition [7]. According to [8] there is little doubt that the proliferation of, and advancements in, Internet-based technologies have resulted in fundamental changes in how companies interact with their customers. However, [9] explains that since the rise of the internet the way business interact with people and other businesses has changed and banks have benefited with the advantages associated with the electronic banking services. The benefits banks derive from electronic banking products and services delivery are improved efficiency and effectiveness of their operations so that more transactions can be processed faster and most conveniently, which will undoubtedly impact significantly on the overall performance of the banks, [10] Customer satisfaction refers to the extent to which customers are happy with the products and/or services provided by a business. [11] Describes it as an electronic connection between the bank and the customer in order to prepare, manage and control financial transactions. Electronic banking according to [12] is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick and mortar institution. In Rwanda, the central bank has taken many initiatives towards introducing and upgrading safe and efficient modes of payment systems in the country to meet the requirements of the public 74 large and the international standards in particular. A payment system is usually known as a set of instructions, instruments and procedures that are involved in making a payment from payment initiation to finality. Technological innovations contribute to the distribution channels of banks and hence improve their positions to better finance businesses [13]. Many more sophisticated electronic banking products were thereafter, introduced to improve service delivery and customer satisfaction. [14] reports that Automated Teller Machines (ATM), Cards, Telephone Banking, Personal Computer Banking and Internet Banking are now available in the banking system.Thus, Rwandan banks today are seriously into new electronic delivery channels for banking products and services with a view to delivering better services and satisfying customers the more. Electronic banking allows customers to access banking services 24 hours a day, 7 days a week. Like ATMs, electronic banking empowers customers to choose when and where they conduct their banking transactions. However, electronic banking innovations at Nyamirambo and Muhima branches seem not to have achieved its aims. Long queues are still seen in the banking hall. Those long queues are as the results of the breakdown of the computers used by bank tellers. This discourages customers, especially when the weekend is nearby.                      


The first objective of this study was to determine factors that influence internet banking adoption at BPR Nyamirambo and Muhima branches. The information indicates that the dominant number of respondents users of electronic banking in BPR Nyamirambo and Muhima branches use ATM (85.4%) and the small number of respondents (14.6%) use Mobile Banking which help them to access their account at anytime and anywhere, the findings showed that out of 89 respondents 77.5% affirmed that it is easy for them to transfer money from one account to another account,65.2% affirmed that they can also check transaction details and statement,79.8% confirmed that it is easy for them to withdraw money from any ATM branch without visiting bank teller. The respondents‟ users of Mobile Banking strongly agreed with 85.5% that they can buy electricity and airtimes electronically. Out of 89 of respondents 67.4 % affirmed that electronic banking services are 24 hours continuous services without being out of services. All these determined factors that influence customers to adopt electronic banking at BPR Nyamirambo and Muhima branches which lead to their satisfaction. The second objective was to assess the level of customer satisfaction at BPR Nyamirambo and Muhima branches. Before the introduction of electronic banking services 65.2%of customers affirmed that they spent much time in the queue waiting to be served but now they spent few minutes on ATM machines to make transaction. The dominant number of respondents 52.8% strongly disagreed that electronic banking services are secure, out of 89 respondents 85.4% strongly agreed that ATM machines are located in convenient places. Most of the respondents 80.8% are truly enjoy and satisfied with the service they get each time they use electronic banking services. Findings showed that out of 89 respondent 76.4% confirmed that there are sometimes problems associated with electronic banking like breakdowns of ATM machines and network problems. Findings revealed that electronic banking has satisfied most of people banking needs. The third objective was to examine the relationship between electronic banking adoption and customer satisfaction. The findings revealed that there exists a positive relationship between electronic banking and customer satisfaction. The Pearson’s correlation between electronic banking and customer satisfaction stood at 0.975% which is a strong direct relationship the two variables. This shows that customers are satisfied with the electronic banking services provided by BPR Nyamirambo and Muhima branches. It is therefore true to say that electronic banking has a significant effect on customer satisfaction.


Basing on data analysis and discussion that mentioned, hence this study can be concluded that the responses of respondents on electronic banking variable is positive; majority respond are agree and strongly agree to the effects of electronic banking methods employed at BPR Nyamirambo and Muhima Branches, the service is quick, easy to use, easy to transfer money from one account to another ,easy to check transaction details and statement , easy to withdraw and easy to buy airtimes and electricity electronically. Findings reveal that Electronic Banking has satisfied most of people banking needs, most bank clients enjoy using e-Banking, this results into a high level of satisfaction. Findings revealed that there is a positive relationship between electronic banking adoption and customer satisfaction. The Pearson’s correlation between electronic banking and customer satisfaction stood at 0.975% which is a strong direct relationship between the two variables. It is therefore true to say that electronic banking has a significant effect on customer satisfaction.


Based on the research findings, skills of the researcher and other constraints accounted, researcher can finish this work by giving the following recommendations all aim at further improvement in decision making by use Electronic Banking for the great success of BPR-Nyamirambo and Muhima branches. Based on the findings of this research, it is recommended that: The findings showed that a small number of respondents use Mobile Banking; much need to be done in the area of creating awareness about the availability of electronic banking services, how they operate and benefits. Bank should organize public exhibitions and make products accessible to all customers. The ATMs need to be operational 24/7 and such need to be in good working condition most of the time in order to reduce ATM machines break down and network connections. The study showed that most customers are strongly agreed with the 24 hours continuous service provided by electronic banking services. In this regard the ATM machines should be managed 24 hours a day to reduce breakdown and network problem. Better still the bank can consider having their own repair technicians to take care of faults as and when they happened.


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CITE AS: Jeannine Uwimana and David Nyambane (2023). Exploring Customer Satisfaction through Electronic Banking Adoption in Rwandan Commercial Banks: A Case Study of Banque Populaire du Rwanda.  INOSR ARTS AND HUMANITIES 9(2):32-50.