THE EFFECT OF AUTOMATED TELLER MACHINE ON CUSTOMER SATISFACTION IN NIGERIN BANKS
- Project Research
- 1-5 Chapters
- Quantitative
- Mean and Standard Deviation
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Background of the Study
Automated Teller Machines, sometimes known as ATMs, are machines that allow clients of banks to do financial transactions. Typically, a user will insert a specific plastic card that is encoded with information on a magnetic strip into the ATM. This card may be used to withdraw cash. The strip has an identifying code on it, and that code is modem-sent to the main computer at the bank (Adams, 2021). The user is required to enter a personal identification number (PIN) using a keypad in addition to the PIN in order to prevent illegal transactions (Agboola, 2021). The computer then gives the authorization for the automated teller machine to finish the operation; most machines have the capability to dispense cash, receive deposits, transfer money, and offer information on account balances. A customer of one bank may use an automated teller machine (ATM) of another bank for cash access since banks have developed cooperative, countrywide networks; hence, all commercial banks' ATMs in Nigeria are inter-connected (Okoh, 2010).
Banks all across the world have implemented Automated Teller Machines (also known as ATMs), and this trend is expected to continue. They provide significant advantages, not just to banks but also to the people who deposit money with them. Depositors are able to withdraw cash from the machines at times and locations more convenient to them than those offered by bank branches during regular business hours. In addition, because ATMs are capable of automating activities that were formerly carried out manually, they are able to cut the expenses associated with serving certain demand depositors. These potential benefits are amplified when banks share their automated teller machines (ATMs), which allows depositors of other banks to access their accounts through an ATM belonging to a certain bank (Andrews, 2003).
The majority of automated teller machines (ATMs) are now being placed by banks. Two of the reasons for this are that they want to increase their market share, despite the fact that due to the prevalence of ATMs, this 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 usage of automated teller machines (ATMs) by bank clients and the deployment of ATMs by banks themselves are only getting off the ground but have experienced explosive growth in recent years. This is especially true following the recent wave of bank consolidation, which, in all likelihood, made it feasible for more banks to afford to deploy ATMs or, at the very least, become part of shared networks. This development came about as a direct result of the recent financial crisis (Fasan, 2007). The problem of the relevance of technology has become increasingly essential in the banking sector as a result of the rising deployment of ATMs. In Nigeria, automated teller machine services have a history that is significantly less than 10 years. In the beginning, they were run as elitist services that were created for those who were interested in exclusive services. Cards were difficult to get, and the procedure for doing so was time-consuming (Adoki, 2021).
At the moment, there is a significant push toward using bank cards and ATMs. It would appear that banks are no longer interested in maintaining personal relationships with their clientele. Some financial institutions have taken to "penalizing" customers, in a sense, for their lack of ability to obtain an ATM card by deducting money from their accounts if the consumer withdraws less than a certain amount at a traditional teller machine. According to Agboola (2006), there was just one bank that possessed an ATM in the year 1998, but by the year 2004, fourteen of them had obtained the technology.
According to the findings of Agboola (2006), the implementation of ICT in banks has resulted in a variety of beneficial effects, including the enhancement of customer service, the maintenance of more accurate records, the promotion of convenience during business hours, the provision of prompt and fair attention, and the acceleration of service times, amongst other things. Additionally, the image of the banks is enhanced, resulting in a market that is more competent. Work has become not only simpler but also more exciting, and as a result, banks' competitive edge, relationships with clients, and the ability to solve fundamental operational and planning problems have all been enhanced. According to Fananopo (2006), aggressive roll out activities by Nigerian banks, driven by interswitch network, contributed to a 93% increase in the number of debit card transactions conducted in Nigeria over the course of the preceding years. The amount of transactions carried out by automated teller machines (ATMs) over the interswitch network rose from 1,065,972 in 2004 to 21,448,615 between January 2005 and March 2012.
This is an increase of 92.6 percent in comparison to the years prior to this one. More than 1700 automated teller machines have been installed on the network, and as of March 2012, around 12 million cards have been issued by 18 different banks.
According to the findings of a recent survey that was carried out by Intermarc Consulting Limited, the most popular platform for conducting business online in Nigeria is ATM services, which are offered by both financial and non-financial organizations in Nigeria (Intermarc Consulting Limited, 2007). According to the findings of the research, customer knowledge of the numerous financial services that may be obtained from Nigerian banks is mostly restricted to the traditional banking services. According to the data, there was a familiarity with savings accounts among 99 percent of the respondents, familiarity with current accounts around 92 percent, and familiarity with local money transfer services among 72 percent. However, among the more modern banking services such as electronic banking, internet banking, point of sales (POS) transactions, and money transfer, ATMs have emerged as the most popular with a 96 percent awareness level. Awareness of ATMs also ranked higher than awareness level about current accounts and slightly below awareness level about savings account (Omankhanlen, 2007).
Because of this, it is abundantly evident that research on the influence of automated teller machines (ATMs) on the level of pleasure experienced by bank customers is required. In light of all of this, the researchers believe that the subject topic is important enough to warrant further inquiry.
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