A Theoretical Analysis of Automated Teller Machine (ATM) System on Customer Satisfaction in the Banking Industry: The Case Study of HFC Bank.

Abstract

The study sought to identify the impact of Automated Teller Machine System (ATM) on customer satisfaction in the banking industry, the case of HFC Bank, Koforidua branch. The study adopted both qualitative (case study) and quantitative methods respectively. HFC bank was selected to gather data, which was acquired from answers obtained from our administered questionnaires. The population of the survey constituted the management and non-management staff and customers of HFC Bank. The data gathered for the study were analyzed using correlation. Results of the study showed that there are high positive correlation between the constructs of Automated Teller Machine System (ATM), customer satisfaction and banking activities. The findings revealed that a higher percentage of the respondents admit that, the ATM has solved the problem of long queues at the banking hall whiles a few percentage of respondents   disagreed. They argued that the maximum amount one can withdraw with the card is not enough. Due to this, the need for joining long queues has emerged again. In conclusion, the researchers confirmed that the introduction of Automated Teller Machine (ATM) has increased the level of customer satisfaction, although there are some problems which need to be addressed by management. Recommendations were given that, management should increase the maximum amount one can withdraw with the card from GH₵ 500 to GH₵ 1,000. Again, management should educate their customers on the use of the ATM in order to avoid difficulties in the usage of the ATM. Finally, another ATMs can be installed, to ease congestion at the banking hall, thus increase the level of customer satisfaction. Keywords: Automated Teller Machine (ATM), customer satisfaction and banking activities and Ghanaian banking industry.