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Impact Of The Use Of Automated Teller Machine (ATM) Among Bank Customers In Asaba Urban, Delta State




The study examined the impact of the use of Automated Teller Machine (ATM) among bank customers in Asaba Urban, Delta State. To achieve this, the study was divided into five chapters. Three research questions were raised and answered in the study, related literature were reviewed in the study.  The study used a descriptive survey. The population of the study consists of fifty eight (58) Zenith Bank (traffic junction) Customers in Asaaba of Oshimili South Local Government Area of Delta State. Simple random sampling technique was used in selecting the fifty eight (58) Zenith Bank (traffic junction) customers in Asaba of Oshimili South Local Government Area of Delta State. Due to the small nature of the population, the sample was manageable because the research was able to get to all the respondents in the population. The instrument for data collection was questionnaire which was validated by two lecturers from the school of Business Education and expert in measurement and evaluation. The method of data collection was mean statistics to answer the research questions. The findings revealed that, Automated Teller Machine (ATM) enhance customers satisfaction in commercial bank, customers derived benefit from using Automated Teller Machine (ATM) in commercial bank and operation of Automated Teller Machine (ATM) in banks affect the bank customers. Based on the findings, it was recommended among others that Bankers should sensitize their customers on the proper use of Automated Teller Machine (ATM) and bankers should also procure modern technology to strengthen network signal to quick processing of ATM transaction in order to arouse customers satisfaction and benefit.



Background to the Study 

The  evolution  of  information  and  communications technology  (ICT)  has  brought development  and  adoption  of advanced  technologies in  commerce  and  industry. Such modern technology in the banking sector is the Automated Teller Machine (ATM) system (Komal, 2017).  Automated Teller 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, 2016).

According to Edet, (2017) automation is the use of machine instead of people to do a job or industrial process with respect to banking, it, involves the use of automatic machine and computer base device to perform banking activities in a way to increase speed, accuracy and capacity.  Automation allows bankers to get closer to their customers and deliver a wide range of service at a lower cost.  He further stated that it is belief that there are four ways in which automation can be use banking industry, and they are:- to perform greater expended base to be handled, to reduce substantial real cost of handling payment, cut the banks free from traditional constraints upon time and place and introduce new product and services

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The automated teller machine (ATM) is a cash dispenser that is designed to enable customer to enjoy banking service without coming into contact with any banks staff.  The ratio of machine is guided through instructions programme into the machine.  Users can gain access into ATM system through a personal identification pin number give to, the customers and must not be discloses to a third party (Akingbola, 2015). A mechanical cash dispenser, arguably an ATM, was developed, and build by Luther George Simjian and installed in 1939 in New York city by the city bank of New York, but remove after 6 months due to lack of over 25years, Nut ill, De ta Rue developed the first electronic ATM, which was installed first in Enfield, Town in north London on 27m June 1967 by Barclays bank (Andoh-Baidoo, and Osatuyi, 2016) he further stated that this instance of innovation was credited to John shepherd Barron, although various other engineers were awarded patents to related technologies at the times.  Shepherd  Barron was awarded on OBE in the 2005 New Year’s honour.  The first person to use the machine was Reg verney of’’ on the buses fame, a British television programme from the 1960.  The first ATMs accept only a single – use taken 1- voucher, which was retain by the machine.  These worked on various principles, including radiation and low-coercivity magnetism that was wiped by the card reader to make fraud more difficult.

Globally, Automated 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, 2013).

The use of ATM leads to the concept of “anywhere and anytime”‘ banking. Through the use of ATM cards, one can check account balances, make payment and withdraw money at ones convenience at ATM installed, without having to go to the banking hall. This is gradually creating a cashless society where customers no longer have to pay cash for the purchase of goods or services. For example bank customers can pay for Dstv subscription through “Quick teller platform” by transferring money directly from their account to pay for the subscription. As most people now own mobile phones, Banks have, also introduced mobile banking, this allows individuals to check their account balances on mobile phones. The delivery channels today in Nigeria are quite numerous as we have the automated teller machine (ATM), point of sales (POS), smart cards, internet banking etc. (Ikechukwu, 2014).

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Hence, there is clearly a need to study the impact of automated teller machine (ATM) on bank customer in Asaba. It is against this background that the research sees the subject-matter worthy of investigation.

Statement of the Problem

In recent times in Nigeria, customers of banks are no longer only concerned about safety of their funds and increase return on investments but demand efficient, fast and convenient services. Customers want a bank that will offer them services that will meet their particular needs and support their business goals at any given time, even after working hours. All these are only achievable through the use of ATMs. A business person no longer want to travel with cash for security reasons, they want to be able to view their activity online, finds out if their cheques are cleared, transfer funds from their account to other account at their convince. All these are achievable through electronic banking. A bank customer who travels out of the country and still needs to withdraw or purchase goods without necessarily carrying cash will only need to fund his Visa card account and he can withdraw cash through an ATM with automatically calculate with the exchange rate and gives the customer the currency spent in the country he is. Nicholas (2015) revealed that the number of ATM users is increasing instantly due to restriction against withdraw from the teller leading to queues outside banks and chaos at all cash vending machines which led to customer dissatisfaction

Inspite of this laudable impact of ATMs to bank customers, a lot of them do not subscribe to its use, owing to several complaints from some ATM users who complain about problems arising from fraudulent activities of ATM fraudsters and normal challenges, such as telecommunication break down, age which makes most ATM machines in Nigeria to run on generators, UPS and inverters. As such doubt is expressed about the impact of Automated Teller Machines (ATM) on bank customer satisfactions. Balunywa, (2017) disclosed that ATM has diverse merits but customers still complain of shortfalls on the use of the system such as; break downs of ATMs, long queues at ATM service points, retention of customers cards, limited knowledge on the use of ATM cards, fraudulent transactions and its operation in just a few languages. Much as Stanbic Bank has managed to put up 173 machines they are still experiencing long queues in the banking hall and at the ATM point with no clear known cause. Korah (2015) argued that ATM technology in banking industry has caused long queues which lead to continuous customer dissatisfaction since people wait for hours to get the cash needed to meet their daily expenses and limit customers daily withdraw. It is against this problem that the researcher seeks to investigate on the impact of the use of Automated Teller Machine (ATM among bank customers in Asaba, Delta State.

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Purpose of the Study

The main purpose of the study was to assess the impact of the use of Automated Teller Machine (ATM) among bank customer in Asaba Urban, Delta State.

Specifically, the study sought to:

  1. Investigate how Automated Teller Machine enhances customer’s satisfaction in commercial bank in Asaba.
  2. Examine the benefits a customer derives from using Automated Teller Machine (ATM) in commercial bank in Asaba.
  3. Identify the challenges militating against ATM operation in commercial bank in Asaba.

Research Question

  1. To what extent does ATM enhances customer’s satisfaction in commercial banks?
  2. To what extent does customers benefit from using Automated Teller Machine (ATM) in commercial banks?
  3. To what extent do the challenges militating against ATM operation in banks affect their customers?

Significance of the Study

The significance of this study could be of immense benefit to students, bank executives/policy makers of banks and financial institutions, scholars and researchers and bank customers.

The study could be of immense benefit to the students because it will enlighten them on the relevance of ATM machine for transaction and with this it will enable them to make the payment of schools fess, school due and other school payments easily so as to reduce stress for them and they can equally withdraw money easy when their parents/guidance send them money.

The study could also be of immense benefit to the bank executives/policy makers of banks and financial institutions because it will enable them 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 could provide scholars and researchers who may wish to undertake a similar study as they will use it as springboard to their own work.

Finally, it could also be beneficial to the customer in the sense that they will know the importance at ATM.  It will also benefit from this study since they are all an account holder or a bank’s customer.

Scope of the Study

The study focuses on impact of the use of Automated Teller Machine (ATM) among bank customers in Asaba Urban, Delta State. The study covers ATM enhancement on customers, benefit of the use of ATM to customers and challenges facing ATM operation.

Pages:  109

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo

Material contains Table of Content, Abstract and References.


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