The impact of automated teller machine (atm) on customer satisfaction in access bank nigeria plc, kaduna

Thesis Overview

<p> </p><p><b>INTRODUCTION</b></p><p>1.1 &nbsp; &nbsp;<b>Background<br>of the Study</b></p><p>Automated Teller Machines (ATM) are devices used<br>by bank customers to process account transactions. Typically, a user inserts<br>into the ATM a special plastic card that is encoded with information on a<br>magnetic strip. The strip contains an identification code that is transmitted<br>to the bank’s central computer by modem. To prevent unauthorized transactions,<br>a personal identification number (PIN) must also be used by the user using a<br>keypad. The computer then permits the ATM to complete the transaction; most<br>machines can dispense cash, accept deposits, transfer funds, and provide<br>information on account balances. Banks have formed cooperative, nationwide<br>networks so that a customer of one bank can use an ATM of another for cash<br>access, by extension all commercial bank’s ATM in Nigeria are inter-connected<br>(Okoh, 2010).</p><p>Globally, Automated Teller Machines (ATMs) have<br>been adopted and are still being adopted by banks. They offer considerable<br>benefits to both banks and their depositors. The machines can enable depositors<br>to withdraw cash at more convenient times and places than during banking hours<br>at branches. In addition, by automating services that were previously completed<br>manually, ATMs reduce the costs of servicing some depositors of demand. These<br>potential benefits are multiplied when banks share their ATMs, allowing<br>depositor of other banks access their account through a bank’s ATM (Andrews,<br>2003).</p><p>Banks have become the principal deployers of ATMs.<br>Two reason for this are that they want to increase their market share, although<br>due to the prevalence of ATMs, it is not likely to be the primary means by<br>which ATMs increase profitability for most banks, or/and above a certain level<br>of operations, the cost of a single transaction performed at an ATM is<br>potentially less than the cost of a transaction conducted from a teller, as<br>ATMs are capable of handling more transactions per unit of time than are<br>tellers (Laderman, 1990).</p><p>In Nigeria the deployment of ATM by banks and its<br>use by bank customers is just gaining ground and has burgeoned in recent times.<br>This has happened especially after the recent consolidation of banks, which has<br>in all probability, made it possible for more banks to afford to deploy ATMS or<br>at least become part of shared networks (Fasan, 2007).</p><p>The increased deployment of ATMs in the banking<br>sector has made the issue of technology relevance important. ATM services have a history that is less than<br>ten years in Nigeria. At first, they were operated as elitist services designed<br>for those desirous of exclusive services. Cards were rare and the process for<br>obtaining them tortuous.</p><p>Presently, the use of ATM cards has been widely<br>promoted. Banks no longer appear to want personal contact with their customers.<br>Some banks have resorted to penalizing the customer as it were, for not<br>possessing an ATM card, by debiting the account of such a customer for<br>withdrawing below a certain amount across the counters. Agboola (2006) reported<br>that although only a bank had an ATM in 1998, by 2004, fourteen of them had<br>acquired the technology.</p><p>Agboola (2006) discovered that the adoption of ICT<br>in banks has produced largely positive outcomes such as improved customer<br>services, more accurate records, ensuring convenience in business time, prompt<br>and fair attention, and faster services etc. Also, the banks’ image is improved<br>creating a more competent market. Work has also been made easier, and more<br>interesting, the competitive edge of banks, relationship with customers, and<br>the solution of basic operational and planning problem has been improved.<br>Fananopo (2006) stated that Nigeria’s debit card transaction rose by 93 percent<br>over previous years owing to aggressive roll out initiatives by Nigerian banks,<br>powered by interswitch network the number of ATM transactions through<br>interswitch network had increased from, 1,065,972 in 2004, to 21,448,615<br>between January 2005 to March 2012.</p><p>This is a rise of 92.6 percent with respect to the<br>previous years. More than 1700 ATMs have been deployed on the network, while<br>about 12 million cards have been issued by 18 banks as at March 2012.</p><p>A recent survey conducted by Intermarc Consulting<br>Limited revealed that ATM services provided by Nigeria by banks and<br>non-financial institutions stood as the most popular e-business platforms in<br>Nigeria (Intermarc Consulting Limited, 2007). The report showed that awareness<br>for various banking services rendered by Nigerian banks is mostly limited to<br>the traditional banking services. The findings shows that 99% of the<br>respondents were aware of savings account, while 92 were aware of current<br>accounts and 72 percent are aware of local money transfer services. However,<br>among the more modern banking services such as electronic banking, internet<br>banking, point of sales (POS) transactions, money transfer, ATMS emerged as the<br>most popular with 96 percent awareness level ATM awareness also ranked higher than<br>awareness level about current accounts and slightly below savings account<br>(Omankhanlen, 2007).</p><p>Hence, there is clearly a need to study the impact<br>of automated teller machine (ATM) on bank customer satisfaction. It is against<br>this background that the research sees the subject-matter worthy of<br>investigation.</p><p>1.2 &nbsp; &nbsp;<b>Statement of Problem</b></p><p>The impact of Automated Teller Machine cannot be<br>ignored if meaningful goals and objectives are expected to be achieved.</p><p>Automated teller machine is introduced into the<br>banking system to enhance good services delivery and efficient customer<br>satisfaction. Presently Nigeria problem in automated teller machine is the use<br>of outdated or inappropriate technology and lack of adequate knowledge all<br>experience about the machine being use in another problem facing automated<br>teller machine.</p><p>The success of our present day organization on how<br>to satisfy customer or consumer by providing a good service of economic growth<br>this end this research preoccupied with the impact of automated teller machine<br>on customer satisfaction in Access Bank (Nigeria) Kaduna.</p><p>1.3 &nbsp; &nbsp;<b>Objective of the Study</b></p><p>The main objective of the study is to examine the<br>impact of Automated Teller Machine on bank customer’s satisfaction. Other<br>specific objectives are:</p><p>1. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>Investigate<br>how Automated Teller Machine enhances customer’s satisfaction in Access Bank.</p><p>2. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>Examine<br>the benefits a customer derives from using Automated Teller Machine (ATM) in<br>Access bank.</p><p>3. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>Identify<br>the challenges militating against ATM operation in Access Bank.</p><p>4. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To<br>highlight the advantage of automated teller machine over manual system of queue<br>in line.</p><p>5. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br>To<br>determine the level of usage of automated teller machine by the Nigeria<br>populace and the problem they encounter.</p><p>1.4 &nbsp; &nbsp;<b>Research Questions</b></p><p>In the study, the research questions below are proffered with answer:</p><p>1. &nbsp; &nbsp; How does ATM enhance customer’s<br>satisfaction in Access Bank?</p><p>2. &nbsp; &nbsp; What benefits do customers derive from<br>using Automated Teller Machine (ATM) in Access Bank?</p><p>3. &nbsp; &nbsp; What are the challenges militating against<br>ATM operation in Access Bank?</p><p>4. &nbsp; &nbsp; What are the advantages of automated<br>teller machines over manual system of queuing in line?</p><p>5. &nbsp; &nbsp; What level of usage and problem encounter<br>Nigeria populace on use of automated teller machines?</p><p>6. &nbsp; &nbsp; How can the automated teller machine<br>enhance customer satisfaction?</p><p>1.5 &nbsp; &nbsp;<b>Significance of the Study</b></p><p>The study would enable banks executives and indeed<br>the policy makers of the banks and financial institutions to be aware of Automated<br>teller Machine as a major product of electronic commerce in Nigeria with a view<br>to making strategic decisions. The research is equally significant because it<br>would provide answers to factors militating against the operation of Automated<br>Teller Machine (ATM) in Access Bank this work would also be useful to student,<br>scholars and researchers who may wish to undertake a similar study as they will<br>use it as springboard to their own work.</p><p>1.6 &nbsp; &nbsp;<b>Scope of the Study</b></p><p>In pursuance of the objective of the study,<br>attention shall be focused on Automated Teller Machine (ATM) among other<br>electronic banking implementation. In order to conduct an empirical<br>investigation into the impact of Automated Teller Machine (ATM), the researcher<br>intend to restrict the study of the impact of Automated Teller Machine in<br>Access Bank (Nigeria) Kaduna.</p> <br><p></p>