International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.

-2018
http://iraj.in
AN EMPIRIAL STUDY ON CUSTOMER SATISFACTION OF ATM
SERVICES IN AHMEDABAD CITY
1
SHAH MALAV VINESHKUMAR, 2BHAVIN BHATT

School of Doctoral Research And Innovation, GLS University, Ahmedabad, Gujarat, India.

Abstract - In the Present day world, the revolutionary development of the information and communication technology has
contributed towards the development of the banking sector. ATM is the most popular and widely used e-banking services in
the Indian banking industry. This study is an attempt to analyse the level of customer satisfaction in ATM service provided
by banks in India. For this investigation Primary data was collected from 110 respondents of Bank of Baroda & YES Bank
in Ahmedabad city through a structured questionnaire using random sampling method. The study reveals that the most
significant problem faced by the customers regarding ATMs is the out of order and out of cash condition of the machine and
the majority of respondents are fulfilling their requirement through using ATM service and they also happy with number of
ATM available in their locality, but most of respondents are not happy with transaction cost charged by different banks for
ATM service and addressing the grievances of the ATM customers.

Keywords - ATM, E-banking, Customer satisfaction, Bank of Baroda, YES bank.

I. INTRODUCTION III. REVIEW OF LITETURE

The technology plays a major role in the development  Sultan Singh &Ms.Komal (2009)in the work
of Banking Industry. Information & Communication entitled “Impact of ATM on Customer
Technology is the major Innovation in the field of Satisfaction (A Comparative Study of SBI, ICICI
technology which is used for access, process, storage & HDFC bank)” examine the present ATM
and dissemination of information electrically. One of facilities provided by SBI, ICICI & HDFC Bank
the facilities of banking services that are currently and the factors affecting the choice of ATM
provided to facilitate transactions for customers is services. The study based on primary data has
through an ATM (Automated Teller Machine). Some been collected through questionnaire. A sample
clients range obtained by the ATM is a 24-hour size of 360 respondents has been taken including
customer service for a wide range of banking 120 for each bank i.e. SBI, ICICI & HDFC bank.
transactions. The study reveals that material satisfaction level
ATMs have made hard cash just a door step away is highest in SBI, then second is ICICI Bank and
from our place throughout the day at any corner of third is HDFC Bank. This is due to the size of the
the world and it allow us to do a number of banking respective bank and number of years of its
functions-such as withdrawing cash from one’s establishment
account, making balance inquiries and transferring  PijushChattopadhyay&Dr. S Saralelimath
money from one account to another using a plastic, (2012),in their study entitled “Customer
magnetic-stripe card and personal identification Satisfaction in ATM Services: a Study with the
number issued by the financial institution, ATM Reference to Indian Bank at Tiruchirappalli
providing a variety of banking services to customers Corporation” examine the relationship between
without having to come directly to the branch of a demographic variable and preference to use
bank. It is very important to verify the customer ATM. The data was collected from 300
satisfaction regarding the ATM service, because of customers from three sample cooperativebans in
this reason this studyisundertaken. Pune city through a structured questionnaire.
Frequency and Percentage analysis and chi
II. CONCEPT OF ATM square tests are applied for data analysis and
interpretation. The study reveals that a majority
Automated teller machines (ATMs) were the first of the customers are highly satisfied with ATM
well-known machines to provide electronic access to services and essential‖ services. The customers
customers. The banks are able to serve customers prefer ATM with time and cost utility which
outside the banking hall. ATM is designed to perform provides efficient services. Despite drawbacks in
the most important function of bank. It is operated by ATMs, it is still preferred as it benefits the bank,
plastic card with its special features. The plastic card employees and customers.
is replacing cheque, personal attendance of the  Dr. R. Seethalakshmi&Dr. P. Kavitha (2013)
customer, banking hour’s restrictions and paper based in their study “Customer Satisfaction in ATM
verification. ATM is Services: a Study with the Reference to Indian
alsocalledautomatedteller,automatic-teller machine, Bank at Tiruchirappalli Corporation” examine
cashmachine,moneymachine. the customer satisfaction in ATM service

An Empirial Study on Customer Satisfaction of ATM Services in Ahmedabad City

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 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.-2018
http://iraj.in
provided by banks in India. The data was respondents in both the banks dissatisfied with
collected from 100 respondents through a the ATM Grievance settlement. Hence it is
structured questionnaire. Collected data was suggested the banks to developed and improvise
analysed according to the objectives of the the proper mechanism to resolve the grievance
present research and result of the statistical settlement, as it leads to customer comfort and
analysis indicates that there is no relationship satisfaction.
between the demographic factors and customer  Ms.VaralakshmiAlapati&Ms.Shruthi V
satisfaction. The study reveals that customer’s Nayak(2015)in their study entitled “A Study on
satisfaction in location and process of Customer Satisfaction with the ATMs of SBI and
withdrawing the money under ATM scheme is ICICI Bank and Role of ATMs for a Greener
high, whereas the satisfaction is comparatively Environment” examine the level of customer
low in the aspects of transaction charge and satisfaction associated with various aspects of
prompt delivery of ATM card and suggested that ICICI Bank and SBI ATM. The study covers
banks should proactively monitor customers’ sample size of 150 respondents with the
preferences with regard to the transaction fee; structured questionnaire in Manipal, Karnataka.
delivering of ATM card promptly and issue of The study reveals that banks should take up
new cards due to loss of original cards in order to various measures to educate customers on the
retain their customers usage of ATMs. Quite a large number of both the
 P Srinivasa Rao, D Rajasekhar& N bank’s ATMs are unaware of the various
VijayaRatnam (2013)intheir study entitled “An facilities provided by the ATMs other than just
Empirical Study of Customer's Satisfaction in cash withdrawal and balance statement. They
ATM Service” examines the various dimensions should be made aware of the facilities like
of service quality and its effect on the customer transfer of funds, biller payments, mobile
satisfaction. The study based on primary data has recharge, donating to charity etc. so that the
collected from the 120 respondents who are the customers can make better use of the ATMs by
customers of Andhra bank and ICICI banks of deriving all its benefits.
Vijayawada city through structured  RanasingheArachchige,
questionnaire. The study reveals that the SudathWeerasiriKosala, ChulaniKoththagoda
respondents of the Vijayawada are satisfied from (2017) in their Study entitled “The Impact of
the ATM services of public and private sector Automated Teller Machines (ATMS) Service
banks. Respondents also prefer convenience and On Customer Satisfaction. Researcher examine
comfort of the ATM locations in the city. the impact of ATM service quality towards the
 Dr.Smita V. Bhide&Mrs.Shraddha M. Bhome customer satisfaction in Sri Lankan state banking
(2014)in the work “A Study of Customer’s sector. This research bridges the gap that exists
Preference towards ATM Services in Co- in the current body of knowledge by
Operative Banks in Thane City” examines the investigating the ATM service qualities and their
awareness and preference to useATM services impact on customer satisfaction. It also examines
and the problems faced by customers while using the impact of demographic factors for the
ATM services offered by select Cooperative relationship between ATM service quality and
banks in Thane city. The data was collected from customer satisfaction. Given these gaps in the
sample of 100 customers from three sample co- literature, the research problem in this research
operative banks in thane city. Frequency and is: The factors which influence on customer
Percentage analysis are applied for data analysis satisfaction with relation to the ATM service. To
and interpretation. The study reveals that there is investigate the research problem, a pilot study
an increase in the usage of these machines and involving 30 state bank customers was used to
waiting in long queues is one of the bigger check the initial reliability and validity of the
problems faced by ATM users. This shows the constructs in the questionnaire. The factor
need of additional machines tobe installed at analysis was employed to refine the
these high-demand areas. measurement items and test for reliability and
 KanikaVerma (2014) in their study “Measuring validity. The study has used the primary data of
Customer Satisfaction towards ATM Services -A customer satisfaction survey (N=385). The data
Comparative Study of Union Bank of India and was collected using a structured questionnaire
Yes Bank” examine the satisfaction level of designed to ascertain the satisfaction levels.
customers of Union Bank of India and Yes Bank Regression, ANOVA and T-test were used to
based on various aspects related to ATMs. The identify significant factors and frequency
data was collected through survey from bank analysis was used to analyse customer
customer and later on will be analyse by satisfaction. The ATM service qualities have a
statistical technique and tools like Descriptive positive impact on the customer satisfaction and
Statistics, Percentage Method, and Ranking the demographic factors like age and educational
Method. The study reveals that majority of the qualification moderate the relationship between

An Empirial Study on Customer Satisfaction of ATM Services in Ahmedabad City

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 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.-2018
http://iraj.in
ATM service quality and customer satisfaction.  To analyse the various problems faced by
This paper identified the significant factors customers in ATM Centre.
which the banks may take care to enhance the  To study the awareness level of customer
customer satisfaction. towards ATM services provided by Banks.
 To provide suggestions on the basis of the result
IV. STATEMENT OF THE PROBLEM of the study.

Today, the banks are having developed technology in VI. LIMITATION OF THE STUDY
order to maintain its customers as well as to attract
more new customers. Providing ATM is one of the  Research is of limited Survey.
technical facilities offered by the banks to its valued  As it is based on Random Sampling, No equal
customers, as the user of ATM is increasing day by chance to be selected of whole population
day. It is important to make a study of the customer residing in specific Area.
satisfaction level with respect to various aspects of
ATM services offered to them. The main purpose of VII. METHODOLOGY OF THE STUDY
this study is to know the level of satisfaction of
various customers having ATM Service facility in The Study is based on a primary data collected
Bank of Baroda and Yes Bank in Ahmedabad. through the structured questionnaire. It covers the
sample size of 110 respondents selected randomly
V. OBJECTIVES OF THE STUDY from Ahmedabad city. Frequency, Percentage
Method, Ranking Method and weighted average
 To study the opinion of customers towards the Method will be applied for data analysis and
ATM services provided by Bank of Baroda and interpretation.
Yes Bank.

VIII. DATA ANALYSIS AND INTERPRETATION

Table 01: Demographic Profile of the ATM Customers

Aspects Variable Frequency Percentage Rank
Male 72 65.5 1
Gender Female 38 34.5 2
Total 110 100

Below 20 years 6 5.5 4

20- 30 years 52 47.3 1
Age 30-45 years 37 33.6 2
Above 45 years 15 13.6 3
Total 110 100

Household 11 10 4
Business 44 40 1
Occupation Service 36 32.7 2
Student 19 17.3 3
Total 110 100
Table 01 gives a clear picture of the demographic profile of the sample respondents. It shows that the male
respondents are more than the female respondents in using the ATM services of the banks. It also depicts that
the majority of the respondents using ATM services falls in the age group of 20-30 years and Business sector
people constitute a major portion of the ATM customers.
Table 02: Total Respondents
BOB Bank YES Bank Total
57 53 110
Table 02 gives a clear picture of the participant of the respondents and the data are collected by random
sampling.
Table 03: Customer Purpose of using ATM Facility
Purpose Frequency Percentage Rank
Depositing Cash 09 08.2 4
Check Account Balance 09 08.2 4
Withdrawal of Cash 53 48.2 1
Mini Statement 08 07.3 6

An Empirial Study on Customer Satisfaction of ATM Services in Ahmedabad City

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 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.-2018
http://iraj.in
Utility Bill Payment 08 07.3 6
Pin Exchange Services 07 06.4 7
Transfer of Funds 15 13.6 2
Cheque Deposits 01 0.8 8
Linked Aadhar Card 00 00 10
Passbook printing 00 00 10

Table 03 indicates that the primary purpose of all the respondents to use the ATM facility is withdrawal of cash.
Pin exchange facility, Transfer of fund, Mini statement and check account balance, Utility bill payment, are the
other priorities of the customers in using the ATM. The data also shows that customers do not prefer to use
ATMs for Linked Aadhar Card and Passbook printing.
Table 04: Frequency and Duration of Using ATM Services
Aspects Particulars Frequency Percentage Rank
Daily 20 18.2 3
Once a week 56 50.9 1
Frequency Once a month 25 22.7 2
Rarely once in a year 09 08.2 4
Total 110 100

Less than 6 months 30 27.3 3

6 months to 1 year 38 34.5 1
Duration 1 year to 5 year 32 29.1 2
More than 5 year 10 09.1 4
Total 110 100

Table 04 shows that majority of the respondents use ATM facility at least once a week or more. This indicates
that the customers frequently depend on ATM services for the various purposes. At the same time, it is evident
that the customers are not using ATMs on a daily basis and the majority of the respondents are using ATMs
since 5 years. This indicates that there is increasing use of ATMs services by the customers over the last one
decade.
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 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.-2018
http://iraj.in
Table 05: Problems Faced By ATM Users
Aspects Frequency Rank
Waiting in Long Queues (Line) 12 5
Card get locked 05 7
Limit on Daily Withdrawal 20 2
Incorrect Amount of Cash Dispensed 04 8
ATM working to slow 19 4
Inability to print Slip 09 6
Machine out of Cash 22 1
Machine out of order 19 4

Table 05 clearly indicates that the most significant problem faced by the customers regarding ATMs is the out
of order and out of cash condition of the machine. The limit on the daily withdrawal of cash is also another
difficulty faced by the customers related to ATMs. But it is to be noted that very few respondent has complained
about the incorrect amount of cash dispensed which shows the improvement of machine accuracy.
Table 06: Level of Customer Satisfaction with reference to Various Aspects

An Empirial Study on Customer Satisfaction of ATM Services in Ahmedabad City

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 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-4, Issue-3, Mar.-2018
http://iraj.in
Table 06 reveals that the majority of customers are of Bank of Baroda and YES bank in Ahmedabad city. .
the opinion that the ATMs are successful in fulfilling The study reveals that the most significant problem
their cash requirement with the minimum transaction faced by the customers regarding ATMs is the out of
time. Besides, the customers are highly satisfied with cash condition and Out of Order of the machine. The
sufficient number of ATMs in their locality and also majority of respondents are fulfilling their cash
with the safety of the ATM transaction. But it is very requirements through ATM service and they are also
evident that a major portion of the respondents are happy with the number of ATMs available in their
not happy with the transaction cost charged by the locality, but most of respondents are not happy with
banks for the ATM services. Therefore the banks the transaction cost charged by banks for ATM
need to concentrate on addressing the grievances of service and their mechanism to address the
the ATM customers through efficient redressal grievances of the ATM customers. Therefore the
measures to enhance the customer satisfaction. banks need to concentrate on addressing the
grievances of the ATM customers through efficient
FINDINGS redressal measures to enhance the customer
satisfaction
The following are some the major findings found in
course of the study: REFERENCE
 The majority of respondents belong to male
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study makes an attempt to find out customer
satisfaction regarding the ATM service provided by

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