The current competition from both national and international markets has created a new assignment for companies to give serious consideration to providing a high quality of service to satisfy and maintain customers. This paper aimed to analyze the effects of ATM service quality on customer satisfaction and customer loyalty. The Bank of Kigali has been chosen as a case in this research. For this investigation, primary data was collected from 284 respondents from Bank of Kigali through a structured questionnaire. Collected data were analyzed with SPSS (Statistical Package for the Social Sciences, 23.0) according to the objectives of the present research. Results of the statistical analysis indicate that the age group of 26-35 dominates with 59.2% of total respondents, with males showing dominance in terms of gender with 75% and 54.2% of respondents being graduates. The study reveals that there is a significant relationship observed between service quality and customer satisfaction, and customer satisfaction and customer loyalty. However, an insignificant relationship has been observed between service quality and customer loyalty. Therefore, the Bank of Kigali must maximize the quality of services offered to its customers through ATMs to create a good brand image and gain loyalty from users.

ATM as one type of Electronic banking systems have become a strategic technology in the banking sector by delivering banking products/services and are expected to offer competitive advantages to banks investing in ATM technology over those that do not. In Rwanda, the cash-based system is now gradually being replaced by the card-based system and this requires banks to improve ATM service quality to satisfy customers. The aim of this paper was to conduct empirical evidence from ATM cardholders of five selected commercial banks in Rwanda to analyze the relationship between ATM service quality and customer satisfaction. To achieve this objective, a structured questionnaire was used to collect primary data of 250 ATM users in five commercial banks from Kigali, capital city of Rwanda (Bank of Kigali, Cogebanque, Equity Bank, Banque Populaire du Rwanda Limited and Ecobank). The questionnaire consists mainly of 32 constructs observed under seven ATM service quality dimensions (Reliability, Responsiveness, Assurance, Empathy, Tangibles, ease of use and Convenience) and a five-point rating scale was adopted as the scale for the statements formulated in the questionnaire. Findings showed that 70.8% of respondents were under or equal to 35 years old which presents a range of youths in Rwanda. From the results, 70% of respondents claimed that they have never been educated on utilization of ATMs. Using SPSS, customer satisfaction has shown a strong correlation with all seven ATM service quality. The multiple regression results identified ease of use as the most important dimension on customer satisfaction and it was followed by convenience, empathy and Tangibles. Therefore, it is suggested that banks could improve their customer satisfaction ratings by educating customers to use ATM and not forget other important improvements in automated teller machine banking services.