Automated Teller Machine - A Study With Reference To Awareness And Satisfaction Of Customers

Transcription

1 Automated Teller Machine - A Study With Reference To Awareness And Satisfaction Of Customers Dr Subramanian. S Professor of Finance, Dilla University, Ethiopia ABSTRACT In the liberalized, privatized and globalized banking environment, electronic banking (ebanking) is the only solution for banks and other financial service providers to gain competitive edge, operational efficiencies and direct marketing opportunities. We have observed a major change from metal and paper money to plastic cards to online banking and fund transfer. With the advancement of technology, banking has become easier, fast, accurate, safe and also time saving. Technology provides more opportunity to the customers as well as the banker for their convenience banking with or without customer awareness of the basic e- banking products of ATM and its services. The banks need to provide necessary information regarding their products and services to maximize customer satisfaction. Product awareness and customer satisfaction is very important tool for successful marketing and business growth. This main objectives of this research study makes an attempt to understand and test whether the customers are aware of the product or not, if aware, they are satisfied or not, if satisfied then what is the level of satisfaction. This study also makes an attempt to analyze and test if there is an association between awareness and satisfaction of ATM users of banks based on the primary sources of information collected from the samples of 255 respondents under convenience sampling method which was analyzed by SPSS. Key words: ATM (Automated Teller Machine), customer satisfaction, awareness, e-banking INTRODUCTION In the modern global e-business environment, the banks in Ethiopia provide a wide range of e- banking services offered to their customers. Electronic based business models are replacing conventional banking systems and almost all banks are rethinking business process designs and customer relationship management strategies. ATMs, Mobile Banking, SMS Banking and Net Banking are the tips of an ice-berg. Finland was the first country in the world to have taken a lead in e-banking. E-banking is a genetic term encompassing internet banking, telephone banking and mobile banking. In other words, it is a process of delivery of e-banking products and services through electronic channels such as telephone, internet, ATMs, mobile phone. E-banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. (Bankersonline.com/tech) In olden days accepting of deposits and sanctioning loans and advances to customers were the main functions of banks but to-day banks perform many new functions such as agency function, financing of foreign trade, credit creation. For performing all these functions efficiently many new e- banking products such as credit card, debit card, ATM are used by banks.( Gupta.V 27). To-day, in view of global business, the individual is not the icing. This will take the customer and banks towards cyberspace with innovative services taken to retain their customers. To-day, banks offer services like internet banking, mobile-banking, payment of bills on credit cards, ATM withdrawals which have had a major impact on the economic growth especially because they have led to the reduction of transaction time or increased the reach of banking and financial sector to sections of people previously unexposed to banking and financial services. All these new range of services are offered under the umbrella of e-banking. E-banking will offer a transparent environment to compare the cost and quality of services offered by a variety of financial institutions. ATMs offer hassle-free cash withdrawal. > RJEBS: Volume: 5, Number: 7, May-216 Page 26

2 SIGNIFICANCE OF THE STUDY Competition and changes in technology and life styles have changed the face of banking and banks in the present environment are seeking alternative ways to provide and differentiate their services through online banking. ATM is designed to perform the most important function of bank. The plastic card is replacing cheque, personal attendance of the customer, banking hour s restrictions and paper based verification. ATMs have become a way of life and the banks which do not offer ATM services are by and large, not regarded favorable by the customer. The ATM consists of multitude of activities which is a major cause of making e-banking at 24 hours and 7 days service. In fact, banking is profitable and possible due to services of ATMs.. Technology provides more opportunity to the customers as well as the banker by the convenience of e- banking products while customers may or may not be aware of the ATM and its services. The banks need to provide necessary information regarding their products and services to maximize their customers satisfaction. In this background, the researcher make an attempt to find out whether the customers are aware of the ATM product or not, if aware, they are satisfied or not, if satisfied then what is the level of satisfaction. Many studies have been conducted abroad with respect to ATM services and characteristics of customers but in Ethiopia, only limited studies have been made so far. Due to lack of research on the perceptional and attitudinal level and lack of popularity of ATMs product in Dilla Town, it was felt necessary and important to conduct a study to know the perceptions and satisfaction level of ATMs users on various services offered by the banks. The basic requirement for conducting this study was to examine the customer feedback and their knowledge about ATM services provided by the banks to enable the financial institutions or banks to adopt a right business strategy which is the significance of the study. REVIEW OF LITERATURE A review has been done primarily to identify appropriate methodologies and a subset of the articles/reports which has been reviewed. A few important literatures on ATM product are: Christoslav et al (23) in a research asserted that ATM services are highly profitable for banks, and banks aggressively market the use of ATM cards. ATMs that are off bank premises are usually more profitable for banks because they attract a higher volume of non-bank customers, who must pay service fees. Kumbhar (211) observed that other than cost effectiveness of ATM service perception about all service quality dimensions is approximately same in public and private sector banks. Overall results shows that cost effectiveness of ATM service were core service quality dimension and it were significantly affecting on overall customer satisfaction in ATM service provided by commercial banks. Motwani D.and shrimali D. (212) in their study highlights the awareness level and satisfaction of customers regarding ATM services. This is a descriptive research in which convenient sampling method was used to collect data. Various statistical tools have been used like chi- square test, ANOVA, weighted mean to test the hypothesis. The conclusion reveals that awareness level is affected by demographic profile of customers. Shariq and Tondon (212) observed that the customers prefer ATM use over other e-banking services. Nearly 95 per cent of respondents use ATM services, followed by internet banking, and phone banking. Singh and Komal (29) found that size of respective bank, year of establishment, and performance of bank are the major factors which are responsible for the customer satisfaction towards ATM service of banks. Tuli, Khatri and Yadav (212) analyzed that most important factor which influence customer to use the ATM services is it s convenience in use and availability of machines. HYPOTHESES On the basis of the respondents responses, the following important statistical null hypotheses were formulated and tested. 1. There is no association between level of awareness and level of satisfaction among the banks. > RJEBS: Volume: 5, Number: 7, May-216 Page 27

3 2. There is no significant difference between various demographic profiles of customers and satisfaction. METHODOLOGY Various services were identified and listed in the questionnaire handed over to customers. Based on the classification of ATM services given in the tables, customers awareness was evaluated by using the Yes/No pattern, giving one point for YES response and Zero for NO response. The satisfaction of the respondents towards services were assessed based on the Five point Likert scale given in the questionnaire (both Amharic and English version) and the point allotted to them are: Highly dissatisfied 1; Dissatisfied 2; Neither satisfied nor dissatisfied 3; Satisfied 4; Highly satisfied The descriptive and inferential analysis for each and every service mentioned in the questionnaire was arrived at both awareness and satisfaction level. Based on the pilot study, majority of the customers were belongs to Commercial Bank of Ethiopia (CBE), second Dashen bank, and other than these two banks, no other bank was popular in providing ATM services in Dilla Town of Ethiopia during the study period of Samples selected for the main study was divided into three categories; first belong to CBE, second to Dashen bank Ltd and the third category had Other Banks (see table no2 ). The sampling unit distributed sparsely, many of the respondents refused and some of the respondents did not cooperate in filling questionnaire. So the samples were selected under convenience sampling method which involves purposive or deliberate selection of the particular unit. The questionnaire was distributed to three hundred and fifty (35) respondents, the area covered 1 km in and around Dilla Town. Due care was taken to see that the sample included in the respondents belonging to various section of the society with varied qualification, income, profession, marital status, sex and age. In this study, data were collected from the way of survey from various banks ATMs, shopping centers, markets places, hotels etc. After follow-up of the 35 distributed questionnaires, 34 responded of which 255 usable were received. The usable responses rate accounted for 84 per cent, which was really satisfactory. Thus, only 255 questionnaires were taken into consideration for the analysis. Primary and secondary sources of information were used as well. According to chosen methodological research approach, the quantitative data was analyzed statistically using SPSS. RESULTS AND DISCUSSIONS On the basis of the analysis and tests the results of the study can be summarized as below: Table 1 shows the socio-economic variables of the respondents such as gender, age, educational level, occupation, area, monthly income, and marital status. Among 255 respondents, 57.6 per cent were females and 42.4 per cent were males. It reveals that the majority of the respondents were females. The reason for high proportion of female respondents shows more awareness and interest among them. Majority of the respondents (71.8%) using ATM services come under the age group 21-3 years and remaining 28.2 per cent belongs to other age groups. Under- graduate is the largest (41.2%) among 255 customers, followed by post- graduates (18.8%), doctorates 14.1 per cent, 12 th completed 11.8 per cent, and 9.4 per cent are 1 th completed. The occupation-wise classification of customers reveals that majority of the respondents were salaried class. The area-wise classification of the respondents shows that 89.4 per cent of them belong to urban and 1.6 per cent to rural. The monthly income of the respondents shows that the majority (52.9%) of the ATMs users monthly income is less than 4 Birr The marital status shows that the majority (71.37%) of the respondents are unmarried due to the reason behind their culture of late marriage. So, Banks should adopt right marketing strategy and assess their customers needs and expectation for satisfaction. Table 2 shows bank-wise classification of the customers, among the total respondents per cent belongs to CBE customers, per cent of Dhashen bank and remaining per cent belongs to other Banks. It is also noted that some of the respondents having account with more than one bank. It reveals that majority (69.41%) of the respondents were from CBE followed by Dhasen bank and Other banks. Table 3, shows the reason for choosing the bank account with 45.9 per cent for salary purpose, followed by 3.6 per cent for convenience like nearness to bank, more facility etc., and > RJEBS: Volume: 5, Number: 7, May-216 Page 28

4 per cent preferred to avail loan facility, 5.9 per cent of them were introduced by their friends and relatives, and 3.9 per cent for other purposes like transaction motive. It reveals that majority (45.9%) of the respondents selecting the bank account for their salary purpose followed by convenience (3.6%). Table 4 shows the majority( 63.5%) of the respondents are facing the problems of using their ATM services of the banks. Table 5 shows the various problems faced by respondents in using the ATMs services of the banks. It reveals that 55.6 per cent of the respondents experienced the problems of poor connectivity, 21 per cent experiences inadequate ATMs leading to long- queue, 11.7 per cent of respondents faced insufficient cash balance with their ATMs and remaining 6.2 per cent of the customers experienced all the above problems. It reveals that majority of the customers faced the problems of poor connectivity, inadequate number of ATM facility, and insufficient cash balance, hence, it is suggested that all the banks should provide appropriate infrastructure facility required to solve the problems for more satisfaction. Table 6, shows the opinion of the respondents of ATM users which reveals that 52.4 per cent for convenience, 12 per cent of respondents prefer for time saving, 11.1 per cent of no risk of carrying birr and 9.8 per cent felt that there is no distance barriers. It is concluded that the respondents preferred ATMs for convenience. The banks should provide more ATMs with sufficient cash balance and infrastructure for their customer s convenience banking. Table7 shows the overall awareness level of the respondents regarding ten types of ATM services provided by various banks is on an average. So, the banks should take immediate steps to increase their level of awareness through frequent customers meet, customer s awareness camp/training, encourage transaction through ATMs etc. Table 8, 9 and 1-shows the level of customer s satisfaction of the ATM services provided by various banks. It reveals that the satisfaction level of customer of CBE and Dashen bank is on an average. But other banks customers satisfaction level is on an average and below. It is also observed that very few number of ATM and in Other banks as the reason behind it. It is concluded that Other banks are not providing sufficient ATM services to their customers. So, the bankers should provide sufficient ATM Machines and adopt suitable policy to encourage transaction through ATM by way of offering incentive/ subsidies for improving their revenue, operational efficiency and level of satisfaction of customers. Hypothesis I, II &III, tests was conducted to find out whether there is any association between awareness and satisfaction level of CBE, Dashen bank, and Other Bank ATMs users. It was found that there is an association exists between level of awareness and satisfaction of ATMs users of various banks. It shows the overall level of awareness and satisfaction is on an average and moderate that is awareness increases with increasing level of satisfaction. It is concluded that the banks should take necessary steps to improve their product awareness among the existing users for higher satisfaction.. In Hypothesis IV, t-test was used to analyze the significant difference between satisfaction level of male and female respondents regarding to various bank ATM services. There is a significant difference existing between male and female respondents with regards to ATM services of Other banks that is females are more satisfied than males. There is no significant difference between male and female with respect to CBE and Dashen bank customers that shows male and female respondents are having same level of satisfaction. It is concluded that there is a significant difference between satisfaction level of male and female respondent of Other banks. Hypothesis V, t-test was used to find significant difference between urban and rural respondents with regards to various ATM services for satisfaction. There is no significant difference between urban and rural respondents regarding the level of satisfaction of banks that is urban and rural are having same level of satisfaction. Hypothesis VI, deals with a test for significant difference between the age groups with respect to satisfaction for various banks ATM services. There is a significant difference between age groups with respect to satisfaction for ATM services of Dashen bank and Other banks, while it was not found with CBE. It is concluded that significant difference between age group of Dashen bank and Other banks customers for satisfaction. Based on Duncan Multiple Range Test (DMRT), below 2 years age group of Dashen bank customers level of satisfaction significantly differs from other age > RJEBS: Volume: 5, Number: 7, May-216 Page 29

5 group where as it was not significant with CBE customers that is age does not influences the customer satisfaction. CONCLUDING REMARKS AND IMPLICATIONS The outcome of the study reveals that there is an association between awareness and satisfaction level of customers. Bankers should take necessary steps to improve their customers awareness such as frequent customers meet/awareness camp, encourage transaction of customers through ATM by offering subsidy /incentives for perennial satisfaction. Majority of the respondent s satisfaction is on an average and below due to lack of ATM connectivity, inadequate ATM facility, and insufficient cash balance therefore it is suggested that the banks administration should arrange proper infrastructure with respective authority and provides facility for continuous usage of ATMs throughout 24X 7day which can be useful to increase the number of ATMs users and customers satisfaction as well. As a result the focus is going to shift from generic banking service to customized banking services. It is clear that attracting new customers is a difficult, expensive and time consuming process. So, the banks should adopt suitable strategy to create more product awareness among existing customers for better satisfaction and improve operational efficiency otherwise they may lose their business growth in future. It is also possible to create paperless-eco-free cashless society which can improve economy of the country at large. There is a possibility of conducting future scope of research on all other e- banking products such as net banking, card banking, and mobile banking customers satisfaction. This is the future scope for further research. APPENDICES: Table 1: Socio-economic Profiles of the Respondents Respondents profiles Frequency Percentage Gender Male Female Age group Less than Above Educational level Doctors Post-graduates Under-graduates th standard th standard Others Occupation Businessman Government employees Private employees Professional Others Area Urban Rural > RJEBS: Volume: 5, Number: 7, May-216 Page 3

6 Monthly Income(birr) Below Above Marital status Unmarried Married Divorced Source: primary data Table 2: Bank wise classification of the respondents Yes No Customers of the Bank Count Percent Count Per cent Commercial Bank of Ethiopia Dashen bank Other banks ** ** Note: Other banks such as Awash International Bank, Addis international bank, Bank of Abyssinia, Construction and Business Bank, Cooperative Bank of Oromia, Development Bank of Ethiopia, Lion International Bank, NIB International Bank, Oromia International Bank, South global bank, United Bank, Wegagen Bank. Table 3: Reasons for choosing the bank account of the respondents Reason for choosing Frequency Percentage Salary Convenience Loan facility Friend &relatives Any other Table 4: Problems of using ATMs services Frequency Percentage Yes No Table 5: Problems experiences in ATM channels Problem experienced Frequency Percentage ATM is inadequate Insufficient cash balance Lack of connectivity Inconvenient location All the above Table 6: Opinion of ATMs users of the banks Opinion Frequency Percentage Convenience Time saving No risk of cash carrying > RJEBS: Volume: 5, Number: 7, May-216 Page 31

7 No distance barriers All the above Source: primary data Table 7: Overall awareness of ATM services of the banks Yes No ATMs SERVICES Count percent Count Percent Cash withdrawal Balance enquiry Mini-statement Fund transfer between accounts PIN change,reset Forex services Mobile recharge, top up Any time, 24/7 access Bill payments Access account at any branch ATMs Table 8: Mean and SD of satisfaction on equality of ATMs services of CBE ATM SERVICES Mean S D Cash Withdrawal Balance Inquiry Mini-statement Fund transfer between accounts PIN change, reset etc., Forex services Mobile recharge, top up /7 access, anywhere, anytime banking Bill payments Access account at any branch ATMs Source: primary data, SD-standard deviation Table 9: Mean and SD of satisfaction on equality of ATMs services of Dashen bank ATM SERVICES Mean S D Cash Withdrawal Balance Inquiry Mini-statement Fund transfer between accounts PIN change, reset etc., Forex services Mobile recharge, top up /7 access, anywhere, anytime banking Bill payments Access account at any of the branch ATM Source: primary data Table 1: Mean and SD of satisfaction on equality of ATMs services of Other banks ATM SERVICES Mean S D Cash Withdrawal Balance Inquiry Mini-statement > RJEBS: Volume: 5, Number: 7, May-216 Page 32

8 Fund transfer between accounts PIN change, reset etc., Forex services 2.. Mobile recharge, top up /7 access, anywhere, anytime banking Bill payments 2.. Access account at any of the branch ATM Source: primary data, SD-standard deviation HYPOTHESIS -I Null Hypothesis: There is no association between overall awareness of ATMs services and level of satisfaction CBE customers Table 11: Chi-square test for association between overall awareness of ATMs services and level of Satisfaction of CBE Customers Level of Awareness Low Moderate High Level of satisfaction Low Moderate High (82.4) (17.6) () (1.) [ 87.5] [11.1 ] [ ] [28.8 ] (7.7) (76.9) (15.4) (1.) [12.5] [74.1] [25.] [44.1 ] () (25.) (75.) (1.) [ ] [14.8 ] [75.] [27.1 ] (27.1) (45.8) (27.1) (1) [1.] [1.] [1] [1.] 2 value P value ** Note: 1 The value within ( ) refers to Row Percentage, 2. The value within [ ] refers to Column Percentage, 3. ** Denotes significant at 1% level HYPOTHESIS -II Null Hypothesis: There is no association between overall awareness of ATMs services and level of satisfaction Dashen bank customers Table 12: Chi-square test for association between overall awareness of ATMs services and level of Satisfaction of Dashen bank Customers Level of Awareness Low Moderate High Source: primary data Level of satisfaction Low Moderate High (72.7) (27.3) () (1.) [ 1.] [21.4 ] [ ] [36.7 ] () (1.) () (1.) [] [64.3] [] [3. ] () (2.) (8.) (1.) [ ] [14.3 ] [1.] [33.3] (26.7) (46.7) (26.7) (1) [1.] [1.] [1] [1.] 2 value P value ** > RJEBS: Volume: 5, Number: 7, May-216 Page 33

9 HYPOTHESIS -III Null Hypothesis: There is no association between overall awareness of ATMs services and level of satisfaction Other banks customers Table 13: Chi-square test for association between overall awareness of ATMs services and level of Satisfaction of Other banks Customers Level of Awareness Low Moderate High HYPOTHESIS IV Level of satisfaction Low Moderate High (71.4) (28.6) () (1.) [ 83.3] [28.6] [ ] [21] (14.3) (71.4) (14.3) (1.) [16.7] [71.4] [2.] [38.9 ] () () (1.) (1.) [ ] [] [8.] [22.2] (33.3) (38.9) (27.8) (1) [1.] [1.] [1] [1.] 2 value P value.** Null Hypothesis: There is no significant difference between male and female with respect to various banks ATMs services for satisfaction Table 14: t test for significant difference between male and female with respect to various Banks ATMs services for satisfaction Gender Female Male t value P value Name of the bank Mean SD Mean SD CBE DASHEN BANK Ltd OTHER BANKS ** Note: **P value denotes significant at 1 % level, *P value denotes significant at 5 % level HYPOTHESIS V Null Hypothesis: There is no significant difference between urban and rural with Respect to various banks ATMs services for satisfaction Table 15: t test for significant difference between urban and rural with respect to various Banks ATMs services for satisfaction Area of the respondents Urban Rural t value P value Name of the bank Mean SD Mean SD CBE DASHEN BANK OTHER BANKS Note: **P value denotes significant at 1 % level, *P value denotes significant at 5 % level HYPOTHESIS -VI Null Hypothesis: There is no significant difference among age group with respect to ATMs services for satisfaction of customers Table 16: ANOVA for significant difference among age group with respect to ATMs services for satisfaction of customers > RJEBS: Volume: 5, Number: 7, May-216 Page 34

10 Age (years) Name of the bank Upto Above 4 F value P value CBE (7.99) (9.74) 11.8 (3.73) 2.67 (13.26) DASHEN BANK Ltd 29.5 b a 19.4 a 2.67 a * (4.94) (1.7) (1.4) (13.26) OTHER BANKS (7.36) (7.32) 18. (11.32) * Note: *P value denotes significant at 5 % level Different alphabets between age group denote significant at 5% level using Duncan Multiple Range Test (DMRT). REFERENCES: 1. Algu Pandian.V& R.K.Sharma (212), A Study of Customers Attitude towards ATM Services of Banks in Rajapalayam, Tamilnadu. International Journal of Finance & Marketing, Vol 2 Issue 3 pp Christolav E. A., Marianne A.H. and Jeanne M. H. (23). US Consumer s and electronic banking Board Division of Consumers and Community Affairs. Los Angeles 3. Gupta.V (27). E-banking: Animator from Udaipur: An Evaluation from Marketing Perspective. blogspot.com/27/1/e-banking.html. 4. Kumbhar Vijay M (211), Customer satisfaction in ATM service: an empirical evidences from public and private sector banks in India, Management research practice, Vol. 3, issue-2, pp Mohammed Shariq & Rameshwar Tondon (212), A study of ATM usage in Banks in Lucknow, Kanpur & Varansi. International Journal of Engineering & Management Sciences, Vol. 3 Issue 2, pp Motwani D.and shrimali D. (212) consumer adoption and satisfaction towards ATM servies: a comparative study of Udaipur city, International journal of research: pariper, Vol.1, Issue- 12, December 212 (ISSN: ) 7. Richa Tuli,Abhijeet Khatri & Anita Yadav (212), A Comparative Study of Customer Attitude towards ATM of SBI & ICICI bank. International Journal of Marketing & Technology, Vol.2 Issue 8, pp Sultan Singh & Komal (29), Impact of ATM on customer satisfaction. Business Intelligence Journal - August, 29 Vol. 2 No.2 pp Vijay M. Kumbhar (211), Factors Affecting on Customers Satisfaction: An Empirical Investigation of ATM Service. International Journal of Business Economics & Management Research, Vol.2 Issue 3 pp ) 1. Zikmund, W. G. (23), Business Research Methods, USA: Thomson South-Western.\ > RJEBS: Volume: 5, Number: 7, May-216 Page 35