Influence of ATMs on Spending Pattern: Situation at Technical Academic Institutions in India

Abstract

The use of ATMs in technical institutions is very interesting, and for many reasons for there are many questions that tend to pop up once the use of ATMs is called into question vis-a-vis the youth. Do students intermingle, influence each other and spend more? Does technical education make students more tech-savvy? Does the location of ATMs influence the withdrawal of cash- and more pressingly, do students withdraw more frequently when an ATM is placed near their hostel or near the college shopping areas? Does the availability of a 24 hour cash source make them spend more, eat out more, and skimp less? Does the ease of transaction make parents supply more money to student (albeit lesser amounts with greater frequency)? Does the introduction of more services than just the withdrawal of money make technically aware and e-comfortable students use these services? Do more ATMs in a limited area mean more cash withdrawn? All these questions have been deeply probed, and answered in this paper based on an exhaustive questionnaire survey conducted amongst the students of one of Indias premier technical academic colleges -National Institute of Technology, Trichy (NITT). This survey has also thrown up some interesting results. Most students feel they spend more due to the presence of ATMs in the campus. The popularity of ATMs seems to be on the rise-for there is a strong pitch for the inclusion of more features to the ATMs. However, and quite worryingly for ATM manufacturers, there is a high incidence of technical glitches occurring. On the whole, the survey seems to conclude that while the introduction of the latest technologies in e-governance is indeed a welcome trend, to sustain the technology and adapt it to a dynamic market environment, the technology must be subjected to relentless innovation and adaptation to local requirements.