Impact of automated teller machine on customer satisfaction in Commercial banks:the case of NFC Bank Buea

Abstract

Commercial banks have been going through a major transition.

Despite this transition, despite a wealth of information on the nature and breadth of internet banking, there is a paucity of research on the impact of internet banking operations in banks that have adopted it vs those that have not.

The purpose of this study was to look into the impact of automated teller machine services on customer satisfaction in commercial banks in Cameroon, using the NFC Bank Buea Branch as a case study.

The study’s major goal was to look into the impact of ATM services provided by commercial banks in Buea in the case of NFC Bank Buea.

Data for this study was gathered from both primary and secondary sources.

The study’s data was examined using descriptive statistical tools such as percentages and frequencies, with the target population consisting of 33 NFC Bank respondents. Data was collected utilizing questionnaires for easy interpretation.

According to the findings, ATM Banking adoption has a greater impact on the banking sector’s performance in terms of time and quality improvement than cost reduction, as many writers have claimed.

The study also found that the introduction of ATM Banking had a favorable impact on the bank’s human resource performance in terms of greater efficiency and effectiveness of commercial banks, as well as higher customer satisfaction and productivity.

The report suggests that crucial infrastructure that facilitates the use of ATM Banking products be supplied, as well as a fixed network service to improve ATM machine usage at all times.

THE FIRST CHAPTER

INTRODUCTION

1.1 The Study’s Background

Globally, an industry’s client happiness is determined by how well Automated Teller Machine services are located. Customer dissatisfaction will be caused by poor ATM service performance. Nearly 3.5 million ATMs have been installed.

The concept of out-of-hour cash distribution arose from bankers’ needs in Asia and Europe; however, little was known about a Japanese device known as the “computer loan machine,” which provided cash as a three-month loan at 5% per year after inserting a credit card; the machine was operational in 1966.

As a convenient manner of receiving money from banks, ATM cards are quickly replacing perplexing withdrawal paperwork. They’re redefining the rules of financial transactions in a sense.

A wise person no longer needs to carry a wallet full of cash; instead, he or she should take an Automatic Teller Machine (ATM) card from his or her pocket, insert it into the machine’s slot, punch in a few data, and walk away with hard cash (Singh and Komal, 2009).

Adrian Ashfield came up with the idea of a card that included the key and the user’s identity in February 1962, and it was given UK pattern 959,713 for “access controller” in June 1964, and it was assigned to W.S Atkins and partners, who worked for Adrian Ashfield.

The first cash machine was reportedly installed by Barclays Bank in its Enfield town branch in North London on June 27, 1967, and was opened by Reg Varney, an English actor. This invention was created by a team lead by John Shepherd Barron of the De La Rue printing firm, who was honored by City Bank in New York in 2005 for his work.

ATMs are thought to have evolved from early cash dispensers and were initially introduced in the early 1970s. A token in the shape of a punch card was used to operate the dispensers. This allowed a consumer to withdraw cash in sachets of appropriate denominations. These sachets are processed, and the clients’ cards are returned to them.

The most crucial function of a bank is performed by an ATM.

Cheques, human attendance of customers, banking hours restrictions, and paper-based verifications are all being phased out in favor of plastic cards. ATMs serve as a jumping off point for electronic fund transfers. The ATM can give account information as well as receive instructions from consumers who have ATM cards.

An ATM is a type of electronic fund transfer machine that can handle cash deposits, account transfers, balance inquiries, cash withdrawals, and bill payments (Hood, 1976).

Automatic Teller Machines (ATMs) are used by the majority of bank customers in various parts of the world, and today’s western youth have never known a world without them.

ATMs have taken about 30 years to become commonplace instances of public walk-up-and-use gadgets.

Adoption has been difficult, requiring faith in the technology as well as a willingness to change behavioral methods in the very sensitive area of personal finance.

Financial institutions have played a key role in promoting ATM usage. The ATM thrives in civilizations where time is valuable and money is plentiful.

Individuals with personal bank accounts and access to a wide range of technology make up this culture.

ATMs are convenient and trustworthy for these people every day; they just need to click a few buttons to collect their money.

As ATMs transcend new boundaries and penetrate new cultures, it’s critical to comprehend the impact of cultural factors on people’s perceptions of, and actions toward, the machines.

This knowledge is critical for boosting technology adoption and design localization, or the process of injecting a specific cultural context into goods intended for other cultures (Anderson, 1993).

Although the goal of these services is to satisfy customers, it is necessary to comprehend client awareness, perception, and, most significantly, satisfaction level. Customers are attracted and retained by offering a variety of customised solutions backed up by a cutting-edge distribution system (the ATMs).

The entire project is aimed towards assisting banks in providing quick service to their customers while completely avoiding human intervention. Customers benefit from ATMs because they can withdraw cash quickly and easily without having to haggle with a bank teller for change or new bills.

The ATM has evolved into a platform for non-cash transactions such as bill payment, insurance payment, statement printing, and even internet access (Krishna and Rao, 2006).

As of 2014, the ATM value (per 100,000 adults) in Cameroon was 3.52. The ATM was introduced by NFC (National Financial Credit) in 2012 to make life easier for its devoted consumers. It has seven branches spread over Cameroon’s ten regions.

Though the bank does not currently cover the northern parts of Cameroon, plans are in the works to open branches there. The company was founded in 1989 and is currently rated second in Cameroon’s commercial activity.

1.2 Statement of the Problem

ATMs are a new means of getting financial services that is demanded by customers’ business needs and facilitated by rapidly changing technology. The banking industry has adopted ATMs as a result of advances made possible by growing use of Information and Communication Technology (ICT) in society. ATMs offer a novel way of distributing client services that is anticipated to improve efficiency, sales performance, and customer satisfaction (Mboma, 2011).

ATMs were first introduced in Cameroon in 2004 and have faced numerous challenges since then, including ATM machine breakdowns, long lines at ATM service stations, user card retention, poor awareness of how to use ATM cards, and fraudulent transactions and operations.

In nations such as the United States, the United Kingdom, Malaysia, Singapore, Finland, and Australia, studies have been conducted on the impact of ATMs in providing services and consumer satisfaction (Gerrard and Cunningham, 2006).

To the best of my knowledge, Cameroon has done insufficient work in terms of ATM services and customer satisfaction issues. As a result, the researcher was motivated to examine and discover the impact of ATM services on customer satisfaction at the NFC bank Buea.

1.2.1 Research Problems

The main problem of this study remains, based on the background study, what effect ATM services have on customer satisfaction. The following research questions were devised in response to this issue:

1. How do ATM services and customer satisfaction relate to each other?

2. What are the advantages of ATM services for NFC bank customers?

3. What are the difficulties that clients who use ATM services face?

1.3 The Study’s Objectives

The main goal is to In the case of NFC Bank, to investigate the impact of ATM services on customer satisfaction in commercial banks in Buea.

1. Determine if there is a link between ATM services and client satisfaction.

2. To give NFC Bank customers access to the benefits of ATM services.

3. To look into the issues that clients have when using ATM services.

1.4 The Study’s Hypothesis

H0: The use of ATMs has no discernible impact on consumer satisfaction.

H1: The availability of ATM services has a substantial impact on consumer satisfaction.

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Impact of automated teller machine on customer satisfaction, Impact of automated teller machine on customer satisfaction,Impact of automated teller machine on customer satisfaction

Impact of automated teller machine on customer satisfaction, Impact of automated teller machine on customer satisfaction,Impact of automated teller machine on customer satisfaction

Impact of automated teller machine on customer satisfaction, Impact of automated teller machine on customer satisfaction,Impact of automated teller machine on customer satisfaction

Further reading: Account project topic and materials

 The effect of automated teller machine services on customer satisfaction of commercial banks in Cameroon