The Effect of E-Banking Adoption on Customer Satisfaction and Loyalty in Commercial Banks in Rwanda: A Case of Bank of Kigali

The study sought to assess the impact of e-banking adoption on customer satisfaction and loyalty in commercial banks in Rwanda. The study specific objectives were: to identify the relationship between using of electronic banking and customer satisfaction in Bank of Kigali Bank; to determine whether the e-banking adoption can affect customer satisfaction or at Bank of Kigali; to identify the opportunities that can increase customer satisfaction by using electronic banking adoption at Bank of Kigali; to identifies the major challenges of electronic-banking on customer satisfaction at Bank of Kigali. The study adopted a descriptive cross-sectional study design. The study involved collection of data at a single point in time in the target population. Descriptive means that the study described phenomenon as it is without doing any form of manipulation. The study used a sample size 400 respondents from staff and customers (clients) of Bank of Kigali. Sampling techniques for this study were both simple random and purposive random. Purposive sampling was used to obtain Bank of Kigali official, simple random was used because when sampling population all were having equal probability of being selected. The source of data was primary and secondary data. To get primary data, the researcher went to the field and collected raw data from respondents, in this study, questionnaires, interviews and observations were used to collect primary data. Secondary data was collected by way of document reviews. Based on correlation analysis among the explanatory variables reliability, empathy and responsiveness are good predictors of level of customer satisfaction in electronic banking due to their higher correlation coefficient in relation to assurance and tangibility. The independent variables those are the five e-banking adoption dimensions, have a positive relationship with customer satisfaction in e-banking. Beside for the response of question in reliability, responsiveness, assurance, Reliability on customer Satisfaction in Bank of Kigali.67.8% of respondents strongly agreed that the bank performs its Electronic banking adoptions without errors, 23.3% agreed with the statement, none of respondents were undecided, 6.4% disagreed with the statement while 2.5% strongly disagreed with the statement. Also 18.9 % of respondents strongly agreed that Electronic banking adoptions are performed within the promised time; 20.6 % agreed with the statement, 23.9% were undecided, 31.1% disagreed with the statement while 5.6 % strongly disagreed with the statement. Moreover, 45.8% of respondents strongly agreed that Bank shows sincere concern in solving my problems, related to electronic banking business operations, 14.4% agreed with the statement, 23.9% were undecided, 10.6 % disagreed with the statement while 5.3% strongly agreed with it. The study findings also showed that 11.7 % of respondents strongly agreed that the bank performs electronic banking adoption exactly as promised. 75.8 % agreed with the statement none of respondents were undecided. The study recommended that Bank of Kigali E-banking Service requires integrated and collaborative approach with all stakeholders. Bank of Kigali should collect customer experience data in real-time across all channels and touch points.