Abstract
The purpose of this study is to investigate the factors affecting customers’ satisfaction towards the use of Automated Teller Machines (ATMs). To address the research objectives, 200 questionnaires were distributed to respondents. A total of 176 were returned which is equivalent to 88% of the total response rate. Data were collected using semi-structured questionnaires and they were organized, coded and analyzed using Minitab18 software. The collected data were analyzed using descriptive Statistics, correlation and multiple regression model. Descriptive analysis showed half of the respondents (50%) agreed that time saving is the main reason to use ATM services. Majority of customers use ATM Banking for Cash withdrawal services and majority of the CBE customers were satisfied by the ATM services provided to them. However, customers were facing different problems associated with ATM service. Some of the problems were the unreliable network for ATM services, limited amount of money to be withdrawn per day, reduction in balance without cash payment, bank charges for ATM services, machine out of cash, card gets blocked or locked up and waiting in line to use ATM Machines. The multiple regression findings also revealed that responsiveness, efficiency, appearance, reliability and convenience of ATM have a significant and positive influence on customers’ satisfaction. Key words: Commercial Bank of Ethiopia (CBE), automated teller machine (ATM), customer satisfaction, service quality.
Highlights
In modern economics, service sector plays a significant role side by side with manufacturing and other sectors
It reveals that 16 (9.09%) of the respondents considered the problem of Automated Teller Machines (ATMs) of their bank branch to be bank charges for ATM services, 7 (4%) of the respondents perceived the problem to be card got blocked or locked up, 14 (7.95%) indicated the problem to be machine out of cash, 85 (48.30%) perceived the problem was unreliable network for ATM services, 23 (13.07%) perceived the problem to be reduction in balance without cash payment, 28 (16%) believed it is limited amount of money to be withdrawn per day
Based on the descriptive results, out of total respondents more than 50% agree that time saving is the reason to use ATM services, followed by faster transaction; banking service at anytime and anywhere is another significant reason to use ATM services
Summary
Service sector plays a significant role side by side with manufacturing and other sectors. According to Agbor (2011), banking sector does its activities socially and economically in a country. Service personnel of such service industries are concerned about their service quality and client satisfaction. Electronic based business models are replacing conventional banking system and most banks are rethinking business process designs and customer relationship management strategies. It is known as e-banking, online banking which provides various alternative e-channels to using banking services, that is ATM, credit card, debit card, internet banking, mobile banking, electronic fund transfer, electronic clearing services etc. It is known as e-banking, online banking which provides various alternative e-channels to using banking services, that is ATM, credit card, debit card, internet banking, mobile banking, electronic fund transfer, electronic clearing services etc. (Singh and Komal, 2009)
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