THE IMPACT OF
AUTOMATED TELLER MACHINE (ATM) ON CUSTOMER SATISFACTION IN ACCESS BANK NIGERIA
of the Study
Machines (ATM) are devices used by bank customers to process account
transactions. Typically, a user inserts into the ATM a special plastic card
that is encoded with information on a magnetic strip. The strip contains an
identification code that is transmitted to the bank’s central computer by
modem. To prevent unauthorized transactions, a personal identification number
(PIN) must also be used by the user using a keypad. The computer then permits
the ATM to complete the transaction; most machines can dispense cash, accept
deposits, transfer funds, and provide information on account balances. Banks
have formed cooperative, nationwide networks so that a customer of one bank can
use an ATM of another for cash access, by extension all commercial bank’s ATM
in Nigeria are inter-connected (Okoh, 2010).
Teller Machines (ATMs) have been adopted and are still being adopted by banks.
They offer considerable benefits to both banks and their depositors. The
machines can enable depositors to withdraw cash at more convenient times and
places than during banking hours at branches. In addition, by automating
services that were previously completed manually, ATMs reduce the costs of
servicing some depositors of demand. These potential benefits are multiplied
when banks share their ATMs, allowing depositor of other banks access their
account through a bank’s ATM (Andrews, 2003).
Banks have become the
principal deployers of ATMs. Two reason for this are that they want to increase
their market share, although due to the prevalence of ATMs, it is not likely to
be the primary means by which ATMs increase profitability for most banks,
or/and above a certain level of operations, the cost of a single transaction
performed at an ATM is potentially less than the cost of a transaction
conducted from a teller, as ATMs are capable of handling more transactions per
unit of time than are tellers (Laderman, 1990).
In Nigeria the
deployment of ATM by banks and its use by bank customers is just gaining ground
and has burgeoned in recent times. This has happened especially after the
recent consolidation of banks, which has in all probability, made it possible
for more banks to afford to deploy ATMS or at least become part of shared networks
deployment of ATMs in the banking sector has made the issue of technology
relevance important. ATM services have a
history that is less than ten years in Nigeria. At first, they were operated as
elitist services designed for those desirous of exclusive services. Cards were
rare and the process for obtaining them tortuous.
Presently, the use of
ATM cards has been widely promoted. Banks no longer appear to want personal
contact with their customers. Some banks have resorted to penalizing the
customer as it were, for not possessing an ATM card, by debiting the account of
such a customer for withdrawing below a certain amount across the counters.
Agboola (2006) reported that although only a bank had an ATM in 1998, by 2004,
fourteen of them had acquired the technology.
discovered that the adoption of ICT in banks has produced largely positive
outcomes such as improved customer services, more accurate records, ensuring
convenience in business time, prompt and fair attention, and faster services
etc. Also, the banks’ image is improved creating a more competent market. Work
has also been made easier, and more interesting, the competitive edge of banks,
relationship with customers, and the solution of basic operational and planning
problem has been improved. Fananopo (2006) stated that Nigeria’s debit card
transaction rose by 93 percent over previous years owing to aggressive roll out
initiatives by Nigerian banks, powered by interswitch network the number of ATM
transactions through interswitch network had increased from, 1,065,972 in 2004,
to 21,448,615 between January 2005 to March 2012.
This is a rise of
92.6 percent with respect to the previous years. More than 1700 ATMs have been
deployed on the network, while about 12 million cards have been issued by 18
banks as at March 2012.
A recent survey
conducted by Intermarc Consulting Limited revealed that ATM services provided
by Nigeria by banks and non-financial institutions stood as the most popular
e-business platforms in Nigeria (Intermarc Consulting Limited, 2007). The
report showed that awareness for various banking services rendered by Nigerian
banks is mostly limited to the traditional banking services. The findings shows
that 99% of the respondents were aware of savings account, while 92 were aware
of current accounts and 72 percent are aware of local money transfer services.
However, among the more modern banking services such as electronic banking,
internet banking, point of sales (POS) transactions, money transfer, ATMS
emerged as the most popular with 96 percent awareness level ATM awareness also
ranked higher than awareness level about current accounts and slightly below
savings account (Omankhanlen, 2007).
Hence, there is
clearly a need to study the impact of automated teller machine (ATM) on bank
customer satisfaction. It is against this background that the research sees the
subject-matter worthy of investigation.
1.2 Statement of Problem
The impact of
Automated Teller Machine cannot be ignored if meaningful goals and objectives
are expected to be achieved.
machine is introduced into the banking system to enhance good services delivery
and efficient customer satisfaction. Presently Nigeria problem in automated
teller machine is the use of outdated or inappropriate technology and lack of
adequate knowledge all experience about the machine being use in another
problem facing automated teller machine.
The success of our
present day organization on how to satisfy customer or consumer by providing a
good service of economic growth this end this research preoccupied with the
impact of automated teller machine on customer satisfaction in Access Bank
1.3 Objective of the Study
The main objective of
the study is to examine the impact of Automated Teller Machine on bank
customer’s satisfaction. Other specific objectives are:
Investigate how Automated Teller Machine enhances customer’s
satisfaction in Access Bank.
Examine the benefits a customer derives from using Automated Teller
Machine (ATM) in Access bank.
Identify the challenges militating against ATM operation in Access Bank.
To highlight the advantage of automated teller machine over manual
system of queue in line.
To determine the level of usage of automated teller machine by the
Nigeria populace and the problem they encounter.
1.4 Research Questions
In the study, the research questions below are
proffered with answer:
1. How does ATM enhance customer’s
satisfaction in Access Bank?
2. What benefits do customers derive from
using Automated Teller Machine (ATM) in Access Bank?
3. What are the challenges militating against
ATM operation in Access Bank?
4. What are the advantages of automated
teller machines over manual system of queuing in line?
5. What level of usage and problem encounter
Nigeria populace on use of automated teller machines?
6. How can the automated teller machine
enhance customer satisfaction?
1.5 Significance of the Study
The study would
enable banks executives and indeed the policy makers of the banks and financial
institutions to be aware of Automated teller Machine as a major product of
electronic commerce in Nigeria with a view to making strategic decisions. The
research is equally significant because it would provide answers to factors
militating against the operation of Automated Teller Machine (ATM) in Access
Bank this work would also be useful to student, scholars and researchers who
may wish to undertake a similar study as they will use it as springboard to
their own work.
1.6 Scope of the Study
In pursuance of the
objective of the study, attention shall be focused on Automated Teller Machine
(ATM) among other electronic banking implementation. In order to conduct an
empirical investigation into the impact of Automated Teller Machine (ATM), the
researcher intend to restrict the study of the impact of Automated Teller
Machine in Access Bank (Nigeria) Kaduna.