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BANKING FINANCE

IMPACT OF AUTOMATED TELLER MACHINE ON CUSTOMER SATISFACTION IN ACCESS BANK NIGERIA PLC, KADUNA

IMPACT OF AUTOMATED TELLER MACHINE ON CUSTOMER SATISFACTION IN ACCESS BANK NIGERIA PLC, KADUNA

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IMPACT OF AUTOMATED TELLER MACHINE ON CUSTOMER SATISFACTION IN ACCESS BANK NIGERIA PLC, KADUNA

INTRODUCTION TO CHAPTER ONE

1.1 Background of The Study

Bank customers utilise automated teller machines (ATMs) to execute account transactions. Typically, a user puts a particular plastic card into an ATM that has information imprinted on a magnetic strip. The strip contains an identification code that is sent by modem to the bank’s central computer.

To prevent unauthorised transactions, the user must also enter a personal identification number (PIN) using a keypad. The computer then authorises the ATM to conduct the operation; most machines can issue cash, receive deposits, transfer funds, and display account balance information.

Banks have developed cooperative, countrywide networks so that a customer of one bank can use an ATM of another for cash access; as a result, all commercial bank ATMs in Nigeria are interconnected (Okoh, 2010).

Banks around the world have embraced and continue to adopt Automated Teller Machines (ATMs). They provide significant benefits to both banks and depositors. Depositors may be able to withdraw cash at more convenient times and locations than during branch banking hours.

Furthermore, by automating formerly manual activities, ATMs minimise the expenses of servicing some demand depositors. These potential benefits are amplified when banks share their ATMs, allowing depositors of other banks to access their accounts via an ATM owned by another bank (Andrews, 2003).

Banks have been the primary providers of ATMs. Two reasons for this are that they want to increase their market share, though due to the prevalence of ATMs, this is unlikely to be the primary means by which ATMs increase profitability for most banks, or/and that above a certain level of operations,

the cost of a single transaction conducted 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 tellers (Laderman, 19).

ATM deployment by banks and use by bank clients in Nigeria is new and has grown rapidly in recent years. This is especially true in light of recent bank consolidation, which has made it possible for more banks to deploy ATMs or, at the very least, become part of shared networks (Fasan, 2007).

The rising deployment of ATMs in the banking sector has highlighted the importance of technology relevance. ATM services have been available in Nigeria for less than ten years.

Initially, they were run as elitist services for individuals seeking exclusive services. Cards were few, and obtaining them was a difficult procedure.

ATM card use is currently being widely encouraged. Banks appear to no longer desire personal contact with their consumers. Some banks have resorted to penalising customers who do not have an ATM card by debiting their accounts if they withdraw less than a particular amount across the counters.

According to Agboola (2006), although only one bank had an ATM in 1998, fourteen had acquired the technology by 2004.

According to Agboola (2006), the introduction of ICT in banks has resulted in overwhelmingly favourable outcomes such as improved customer service, more accurate records, ensuring convenience in business time, immediate and fair attention, and faster services, among other things.

Furthermore, the banks’ image is improved, resulting in a more competent market. Work has also been made easier and more fascinating, and banks’ competitive edge, client relationships, and basic operational and planning problems have all been improved.

According to Fananopo (2006), Nigeria’s debit card transactions increased by 93 percent over prior years due to aggressive roll out initiatives by Nigerian banks backed by the interswitch network.

Between January 2005 and March 2012, the amount of ATM transactions over the interswitch network climbed from 1,065,972 in 2004 to 21,448,615 in 2012.

This represents a 92.6 percent increase over the previous year. As of March 2012, the network had around 1700 ATMs, and 18 banks had issued approximately 12 million cards.

According to a recent poll performed by Intermarc Consulting Limited, ATM services supplied by banks and non-financial organisations in Nigeria are the most popular e-business platforms in Nigeria (Intermarc Consulting Limited, 2007).

According to the report, most people are only aware with the standard financial services provided by Nigerian banks. According to the data, 99% of respondents were aware of savings accounts, 92 percent were aware of current accounts, and 72% were aware of local money transfer services.

However, among more modern banking services such as electronic banking, internet banking, point of sale (POS) transactions, and money transfer, ATMs emerged as the most popular with 96 percent awareness (Omankhanlen, 2007).

As a result, there is an obvious need to investigate the influence of automated teller machines (ATMs) on bank customer satisfaction. Against this backdrop, the research deems the subject worthy of investigation.

1.2 Statement of the Problem

If significant goals and objectives are to be met, the impact of Automated Teller Machines cannot be overlooked.

The introduction of automated teller machines into the banking sector improves service delivery and client satisfaction.

Another issue confronting automated teller machines in Nigeria is the deployment of old or inadequate technology, as well as a lack of basic knowledge and experience with the machine.

The success of our current organisation is dependent on how to satisfy customers or consumers by delivering a good service of economic growth. To that aim, this research was concerned with the impact of automated teller machines on customer satisfaction in Access Bank (Nigeria) Kaduna.

1.3 Objective of The Study

The study’s primary goal is to investigate the influence of Automated Teller Machines on bank customer satisfaction. Other specific goals include:

1. Look into how Access Bank’s Automated Teller Machine improves client satisfaction.

2. Examine the advantages that a customer gains from utilising an Automated Teller Machine (ATM) at Access Bank.

3. Identify the obstacles that are impeding ATM operation at Access Bank.

4. To emphasise the advantages of automated teller machines over the human system of queueing in line.

5. To ascertain the extent to which the Nigerian people use automated teller machines and the problems they confront.

1.4 Research Questions

The following research questions are addressed in the study:

1. How does Access Bank’s ATM improve client satisfaction?

2. What are the advantages of utilising an Automated Teller Machine (ATM) at Access Bank?

3. What are the obstacles that prevent Access Bank from operating ATMs?

4. What are the advantages of automated teller machines over the traditional method of queuing in line?

5. What is the degree of utilisation and problems encountered by Nigerians when using automated teller machines?

6. How might automated teller machines improve customer satisfaction?

1.5 research Hypothesis

H0: Automated teller machines (ATMs) have no discernible influence on customer satisfaction.

H1: The automated teller machine (ATM) has a substantial impact on customer satisfaction.

1.5 Importance of the Research

The study would provide bank executives and policymakers with information about automated teller machines as a major product of electronic commerce in Nigeria, allowing them to make strategic decisions.

The research is also significant because it will provide answers to factors that are working against the operation of Automated Teller Machines (ATM) in Access Bank.

This work will also be useful to students, scholars, and researchers who may wish to conduct a similar study as a springboard for their own work.

1.6 Scope of The Study

In order to achieve the study’s goal, emphasis will be paid to Automated Teller Machines (ATMs) and other electronic banking implementations.

The researcher intends to limit the study of the influence of Automated Teller Machine (ATM) in Access Bank (Nigeria) Kaduna in order to perform an empirical examination into the impact of ATM.

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