IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 3 NO. 2 2017

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Impact of Automated Teller Machine on Customer Satisfaction and Profitability of Commercial Banks

Ekanem Edem Udo Udo (PhD), Alhaji Abiso Kabir, Adeogun Bukola Simeon (PhD) and Adeniyi M. Yusuff

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Abstract

Technology has made service delivery faster and as a result it has been introduced into commercial banks as they are considered very relevant to the growth of the financial industry in recent times. Indeed, automation is necessary for a well-balanced economy as it plays a very important role in the functioning of financial industry in general and commercial banks in particular. Automation in banks have contributed immensely to the missing link between customers and commercial banks by facilitating services and operational advantages. However, previous experience shows that most customers of banks suffer delays in transaction due to system failures, incompetence of staff members and other reasons. The main aim of this study is to investigate the impact of automated teller machine (ATM) on customer satisfaction and profitability of commercial banks in Nigeria. The study used a quantitative approach to data collection to gather information from selected customers and workers of commercial banks in Maiduguri, Borno state, Nigeria. In this study, a well- structured closed ended questionnaire was designed and distributed to participants in the responding organizations to elicit information pertaining to their adoption of ATM in conducting financial transactions with commercial banks. The data obtained were analyzed and presented in tabular form with the aid of descriptive statistics. This study found that the generality of the concept of electronic automation has in the past few decades accorded great acceptance and relevance in almost all organizations, institutions and especially the banking institutions. In addition, automation has from its inception contributed immensely to the development of the banking activities, customer satisfaction and profitability of commercial banks in Nigeria. Future researchers could use a qualitative method of data collection to find out real life experiences of commercial bank workers and customers as regards the impa

keywords:

Automated Teller Machine, Customer Satisfaction, Profitability, Commercial Banks, Nigeria.

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