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

Project Abstract

This research project aims to investigate the impact of Automated Teller Machines (ATMs) on customer satisfaction in Access Bank Nigeria Plc, specifically focusing on the branch located in Kaduna. As technology continues to advance, the banking sector has witnessed significant changes in the way services are delivered to customers. ATMs have become a crucial component of banking operations, offering customers convenient access to various services without the need for direct interaction with bank personnel. The study will employ a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather data from customers who have utilized the ATM services at Access Bank in Kaduna. The quantitative surveys will focus on assessing customer satisfaction levels before and after the introduction of ATMs, while the qualitative interviews will provide deeper insights into the specific factors influencing customer perceptions and experiences with ATM services. The research will also explore the potential challenges and limitations associated with ATM usage in a banking environment, considering factors such as security concerns, transaction processing speed, and service reliability. By examining these aspects, the study aims to provide a comprehensive analysis of how ATMs impact customer satisfaction and overall banking experiences in Access Bank Nigeria Plc, Kaduna. Through the findings of this research, it is expected to contribute valuable insights to the existing literature on the role of ATMs in enhancing customer satisfaction in the banking sector, particularly within the context of a specific Nigerian bank branch. The results of the study may also offer practical recommendations for Access Bank and other financial institutions to optimize their ATM services and improve customer satisfaction levels. Overall, this research project seeks to shed light on the significance of ATMs in shaping customer experiences and perceptions in the banking sector, with a focus on Access Bank Nigeria Plc in Kaduna. By exploring the impact of ATMs on customer satisfaction, this study aims to provide valuable insights that can inform strategic decision-making and enhance service delivery in the Nigerian banking industry.

Project 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>