IMPACT OF AUTOMATED TELLER MACHINE (ATM) TRANSACTION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN RWANDA CASE STUDY OF BANK OF KIGALI (2015-2018)

Abstract

This study entitles the impact of Automated Teller Machine on Financial performance of commercial banks of Rwanda, case of Bank of Kigali. This study was being guided by the objectives which are to establish the effect of Automated Teller Machine transactions on financial performance of commercial Banks, find out the extent of commercial Banks performance influenced by Automated Teller Machine transactions, and establish the relationship between Automated Teller Machine transactions on financial performance of commercial Banks. The data collected from both primary and secondary sources was processed and analyzed so as to find out the hidden meaning that can be based on to draw conclusions. The logistic regression was used to analyze and interpret binary logistic was also used to analyze logistic regression. The process of data analysis was beginning after that data is collected, and then the data was entered into the SPSS software and therefore analyses. To interpret the responses of the respondents, the values of interpretation was used. The level of performance of commercial banks by observed response of respondents which are 84% of total number of respondents who agreed with Yes and 16% of total number of respondents who disagreed with NO. Exponentiation of the B coefficient which is an odds ratio indicates odds ratio is given by odds: 8/42 which gives 0.190 and is less than 0.5, Score test that is used to predict whether or not an independent variable would be significant in the model. This indicates that V1, V2, V3, V4, V5, V6 each of the predictors would be statistically significant. This helped a researcher to reject the null hypothesis H0 which says that there is no a significant relationship between Automated Teller Machine transaction and performance of Bank of Kigali, and confirm H1 which says that there is a significant relationship between Automated Teller Machine transactions on financial performance of Bank of Kigali.