A STUDY ON CUSTOMER SATISFACTION TOWARDS ATM

T.SATHIA BHAMA et al/ A STUDY ON CUSTOMER SATISFACTION TOWARDS ATM SERVICES

eISSN1303-5150 www.neuroquantology.com

A STUDY ON CUSTOMER SATISFACTION

TOWARDS ATM SERVICES

(With reference to Kanyakumari District)

1. T.SATHIA BHAMA

RegNo: 19223281012035, Research Scholar,Department of Commerce, Women’s Christian College,

Nagercoil – 1,Affiliated to Manonmaniam Sundaranar University, Tamil Nadu, India.

2. Dr. G. SWEETLIN SUBI

Assistant Professor,Department of Commerce,Women’s Christian College, Nagercoil – 1,Affiliated to

Manonmaniam Sundaranar University,Tamil Nadu, India.

*Research Scholar, Department of Commerce, Women’s Christian College, Nagercoil-1

**Assistant Professor, Department of Commerce, Women’s Christian College, Nagercoil-1

Abstract

The Automated Teller Machine (ATM) is one type of innovation that can mechanically accept

deposits, issue withdrawals, transfer funds between accounts, collect bills, and make small loans. The aim

of this paper was to provide the customer satisfaction in ATM service of public and private sector banks in

kanyakumari district. Customer satisfaction is a model to facilitate results that are significant, consistent

and effective to forecasting the financial ability of an organization. This research customer satisfaction

towards ATM services should be prepared with utmost carefulness. Determining customer satisfaction

must be a constant, reliable, suitable, precise and consistent process. A new approach in customer

satisfaction becomes an essential tool in strategic business units to the organization. The sample of the

study comprises of 150 bank customers were selected based on Kanyakumari District. The data were

collected from the respondents using a Stratified sampling method. Both primary data and secondary data

were collected. Primary data was collected through structured Questionnaire and secondary data were

collected through various journals, books, published articles, magazines, newspapers and websites. The

present study analyzed the customers satisfaction towards ATM services.

Keywords: Automated Teller Machine, collect bills, mechanically.

DOINumber:10.48047/nq.2022.20.22.NQ10419 NeuroQuantology2022;20(22):4190-4195

Introduction:

Automated teller machine (ATM) banking

is a popular access channel to banking products

and services behind branch banking. Banks have

been offering more access points to newer ATM

technologies that are faster, secure and with a

wider range of services that include cash

depositing to achieve competitive advantage

through the ATM banking. To retain bank

profitability, expanding the base of satisfied

customers is of essence. As such the concept of

customer satisfaction and what makes customers

satisfied is an area of frequent market studies.

Knowing the customer satisfaction towards ATM

banking is of significance when it comes to

deployment of ATM technologies..

An automated teller machine (ATM) is an

electronic telecommunications device that

enables customers of financial institutions to

perform financial transactions, such as cash

withdrawals, deposits, funds transfers, balance

inquiries or account information inquiries, at any

time.ATMs are alternative media for simple

banking transactions. Compared to crowded bank

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branches with long queues, people prefer to use

ATMs for their simple daily transactions

especially for cash withdrawals. Although some

more complicated banking transactions and even

credit applications can be handled by ATMs,

people see ATMs mostly as cash dispensers.

Customers also use ATMs in front of bank

branches to withdraw money faster then they

will do from the branch.

The ATM cards and their operations are

generally centralized through core banking

operations, with high security processor. They

are two different ATM cards at present time,

their namely domestic national card and

international ATM debit / credit cards. The

domestic national ATM cards can be used within

India and international credit card can be even

used in the foreign countries without any

hindrances. The card issued by the central unit of

bank climate to the customers based on the

request of customers. After receiving the ATM

card, the customers should physically visit the

banks to activate and also the customer should

visit the nearest ATM to create permanent

identification number and further usage of card.

In present day the ATM card operations is

directly linked to smart phone of the customers

for one time password (OTP) with the assurance

of conditional communication. After the first

operation, the customer can regularly change the

PIN for the full security purpose. These plastic

cards enable the customers to purchase all kinds

of goods through online without any hindrance.

OBJECTIVES OF THE STUDY

➢To analyze the factors leading to the

adoption of ATM services.

 To analyze theProblems in the Usage

of ATMS.

REVIEW OF LITERATURE

Chi and Phong (2016) found that two service

quality factors that have impacts on ATM service

quality of the bank, which are assurance and

tangibles, in which assurance has the strongest

effect on customer satisfaction.

Frank (2016) showed that intermittent network

failure, problem of usage and fear of being duped

lead to under utilization of ATM usage.

Withdrawals and phone recharge were identified

as the principal services of ATMs.

Rameshkumar (2016) identified the most

important usage of ATM among the users to be

cash withdrawal, fund transfer and payment of

credit card bill. The frequency of usage of ATM is

noticed as higher among the employees and

professionals whereas the dominant frequencies

of usage among them are 4 to 8 times per month.

Statement of the Problem

The introduction and use of ATM system

of banking has received different perceptions.

One of the views is that, it may not have really

created customer satisfaction for bank clients,

and the other is that, it may have. Despite all the

merits of the ATMs, 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. The impact of Automated Teller

Machine cannot be ignored if meaningful goals

and objectives are expected to be achieved

(Balunywa, 2003). Automated teller machine is

introduced into the banking system to enhance

good services delivery and efficient customer

satisfaction. Present problem in automated teller

machine is the use of outdated or inappropriate

technology and lack of adequate knowledge or

experience about the machine being use is

another problem facing automated teller

machine. This study therefore examines the

Automated Teller Machine on customer’s

satisfaction in the banks of Kanyakumari districts.

RESEARCH METHODOLOGY

The data required for the present study

has been collected from both primary and

secondary sources. The primary data was

collected from customers of some public and

private branches in kanyakumari district. A well-

planned questionnaire was constructed for

collecting primary data from the customers.

Stratified Random Sampling method is used in

this study. The secondary data was collected

from associated research publications in books,

journals and periodicals, dailies and reports

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available on the chosen topic. Information on

particular bank website and related websites are

also used for data collection to develop

theoretical background of customer satisfaction

towards ATM services .

ANALYSIS AND INTERPRETATION

FACTORS LEADING TO THE ADOPTION OF ATM

SERVICES.

The adoption of ATM depends upon so

many factors like personal profile of customers

and their level of acceptance of new technology,

relative advantage of new system. Ease of use.

Compatibility and observability . The attributes of

diffusion have a significant impact on the

adoption of ATM. It is essential to examine these

factors for future policy implications. The

variables were drawn from reviews .These are

ATM’s speed, Safety of personal information ,

Simple to understand, Adjustment ,

Accommodate the life style, Adoption, ATMs

efficiency , Simple to accept , Simple to use,

Perceived value.

Table No: 1

FACTORS LEADING TO ATM SERVICES

S.No

Variables

Accommodatethelifestyle

.757

Adoption

.751

Simpletoaccept

.725

ATMsefficiency

.677

Simpletouse

.655

Perceivedvalue

.844

Accommodatetheactivities

.844

Acceptanceofnewthing

.672

Safety

.829

Simpletounderstand

.757

ATM’sspeed

.643

Adjustment

.596

SOURCE: PRIMARY DATA

The KMO of sampling adequacy and Bartlett’s test of sphericity have been conducted to test the

validity of data, since their KMO measure is greater than 0.5 i.e. (.836) and the chisquare value is 686.827

at 66 degrees of freedom which is significant at 5% level.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.836

Bartlett's Test of

Sphericity

Approx. Chi-Square

686.827

Sig.

.000

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Table: 2

FACTORS LEADING TO THE ADOPTION OF ATM SERVICES

Sl.

NO .

MAIN

REASONS.

NO.OF.

VARIABLES.

EIGEN

VALUE

% OF

VARIANCE

EXPLAINED

CUMULATIV E % OF

VARIANCE EXPLAINED

Usage

4.850

75.669

Acceptance

1.436

13.384

89.054

Speed

1.260

10.947

100.000

SOURCE: PRIMARY DATA

The variables ‘Accommodate the life

style’(.757), ‘Adoption’ (.751), ‘Simple to accept

(.725), ‘ATMs efficiency’ (.677) ‘Simple to

use’(.655) with higher loadings can be combined

together and are named as a factor called the

‘Usage’. The variables ‘Perceived value (.844),

‘Accommodate the activities’ (.844), ‘Acceptance

of new thing’(.672) with higher loadings can be

combined together and are named as a factor

called the ‘Acceptance’. The variables ‘Simple to

understand’ (.757), ‘ATM’s speed (.643),

‘Adjustment (.596) with higher loadings can be

combined together and are named as a factor

called the ‘Speed’. All the three factors explain

the variables to the extent of 100 percent. The

most important factor influencing the employees

as identified by the factor analysis is constraints

and Usage since its Eigen values are 4.850 and

1.436 respectively.

THE PROBLEMS IN USAGE OF ATM SERVICES

The problems in usage of ATM services

may be related to the profile of customers, their

psychological fear on the usage, the technical

fault in electronic devices, higher cost, poor in

complaint handling, and poor service quality. In

the present study, the important problems in

usage of ATM services are drawn from Time

taken for processing, Losing of ATM card,

temporarily out of service, Higher service

charges, Misuse of cards, Damage of cards, Limit

for cash withdrawal and No cash.

TABLE NO: 3

PROBLEMS IN USAGE OF ATM SERVICES

S.No

Preference

Total Score

Mean Score

Rank

Time taken for processing

7370

49.13

Losing of ATM card

7467

50.98

Temporarily out of service

8074

53.82

Higher service charges

7104

47.36

VII

Misuse of cards

7656

51.04

III

Damage of cards

7443

49.62

Limit for cash withdrawal

7750

45.37

VIII

No cash

6806

51.66

SOURCE: PRIMARY DATA

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The above table 3 reveals that the

problems in usage of ATM services. The main

problems regarding-banking service is

“Temporarily out of service” since it is secured

first rank with mean score (53.82), second rank

goes to ‘No cash ’as it scored (51.66), third rank

goes to ‘Misuse of cards’ as its score (51.04),

followed by “Losing of ATM card” scored(50.98),

“Damage of cards” (49.62), “Time taken for

processing” (49.13), “Higher service charges”

(47.36)and “Limit for cash withdrawal” (45.37).

FINDINGS

 The present study indicates that there is

a significant association in Satisfaction

level regarding various factors of ATM

services provided by the Banks.

 .The factors leading to the usage of ATMs are

examined with the help of 12 variables. The

highly viewed variables are ATMs Perceived

value and accommodate the activities

respectively.

 The Garret Ranking Technique reveals that

the respondent’s most influential factor to

preference about the reasons for the

problems in usage of ATM services is there is

“Temporarily out of service”.

Suggestions

 The rate of usage of ATM services among the

respondents is not at an appreciable level. This

defect can be eliminated by customer conducting

awareness programs on the usage of ATM

services offered by the banks.

 Since most of the respondents are using the

ATM for getting cash (cash disposal), the bankers

are advised to keep sufficient amount of cash for

ready disposal in the ATM at all times. Some of

the branches are not keeping cash in ATM at all

times. This affects the customers’ trust on getting

cash when required. Hence, they are not willing

to go for further functions of ATM with

confidence. Since the bankers should create

customer trust by providing 24 hours cash

disposal in their ATMs.

 The provision of ‘safety and privacy’ in the ATM

services offered by the banks are not up to the

level of expectation of the customers, the

bankers are advised to fill up the quality gap

through proper customer analysis. They are

advised to provide safety measures to their

customers. Similarly, the privacy in the ATM

centre’s is not up to the expected level. Hence,

the privacy must be focused and delivered to

their customers in order to enrich customer

satisfaction.

SCOPE FOR FUTURE RESEARCH

The present study will be a base for many

future research avenues as follows. The study

may extend its scope to the state level.

 The study may be enlarged to

cover all on line banking

measures.

 The future research may focus

on the role of demographics of

the public in the utilization of

online banking.

 The future research may discuss

the causes and consequences of

online banking among the

customers

 A comparative study may be

undertaken on ATM services

among the household and

business customers in the near

future.

CONCLUSION

This study briefly explains the customer’s

satisfaction towards ATM services. It also

presents the traditional services as well as the

modern services provided by the banks. The

present generations is attracted more by the

modern services as it is more attractive and time

saving. From this study the researcher has learnt

most of the people are using ATM services and

the level of the customers is good. This study

clearly shows the usage of modern services and

its advantages. The variables related to the usage

of ATMS, factors leading to the adoption of

ATMS, customer satisfaction and the problems in

the usage of ATMS derived from this study.If the

bankers take necessary steps to take remedial

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measures to promote satisfaction to the

customers about the usage of new technologies.

REFERENCE

https://www.slideshare.net/

https://www.researchgate.net/

1. Chi AnhPhan and Phong Tuan NHAM

(2016) “Impact of Service Quality on

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Nigeria”, World Journal of Social

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3. Rameshkumar, N., (2016), “A Study on

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