A STUDY ON CUSTOMER SATISFACTION TOWARDS ATM SERVICE

IN SBI BANK

Ms. AISHWARYA AR, 1M.COM

SRM Institute of Science and Technology Ramapuram Campus, Chennai-600089
Mail ID: [email protected]
Dr. A. JAYABAL
Department of Commerce, SRM Institute of Science and Technology Ramapuram Campus
Chennai-600089

ABSTRACT

AUTOMATED TELLER MACHINE (ATM) Technology has always been a major

driver of bringing changes and making things easier in timely manner. Due to technological
development bank has provide so many services to the customer like Internet Banking, Mobile
Banking etc. Banking is a popular access channel to banking products and services behind
branch banking. This paper presents the study of ATM on customer satisfaction. This is a
comparative study major banks i.e., State Bank of India. This paper has been divided into two
sections. First section presents the introduction of ATM, brief history of Bank compiled through
the literature available in the field. It also includes the review of the various services provided by
the bank under study. Second section presents the result obtained on the basis of the data
collected for the bank from the public. A sample of respondents equally and unequally
representing each has been taken through questionnaire. Data has also been collected through
many sectors also. Then various tools have been used accordingly to compile the result.
INTRODUCTION

AUTOMATED TELLER MACHINE (ATM) Technology has always been a major

driver of bringing changes and making things easier in timely manner. Due to technological
development bank has provide so many services to the customer like Internet Banking, Mobile
Banking etc. Banking is a popular access channel to banking products and services behind
branch banking. Banking have been offering more access points to newer ATM technologies that
are faster, secure and with a wider range of services that includes cash depositing to achieve
inexpensive advantages through the ATM Banking. As such the concept of customer satisfaction
and what makes customer satisfied is are of frequent market studies. Electronic based business
models are replacing conventional banking system and almost of banks are rethinking business
process design and customer relationship management strategies. It is also known as e-banking,
online banking which provides various alternative e-channels to using banking services i.e.,
ATM, credit card, debit card, internet banking, mobile banking, electronic fund transfer,
electronic clearing services etc., however, as per India e-banking scenario ATM is most
acknowledge than another e-channel.

HISTORY OF STATE BANK OF INDIA:

State Bank of India (SBI) is that country's largest commercial bank. The
government-controlled bank the Indian government maintains a stake of nearly 60 percent in SBI
through the central Reserve Bank of India--also operates the world's largest branch network, with
more than 13,500 branch offices throughout India, staffed by nearly 220,000 employees. SBI is
also present worldwide, with seven international subsidiaries in the United States, Canada,
Nepal, Bhutan, Nigeria, Mauritius, and the United Kingdom, and more than 50 branch offices in
30 countries. Long an arm of the Indian government's infrastructure, agricultural, and industrial
development policies, SBI has been forced to revamp its operations since competition was
introduced into the country's commercial banking system. As part of that effort, SBI has been
rolling out its own network of automated teller machines, as well as developing anytime-
anywhere banking services through Internet and other technologies. SBI also has taken
advantage of the deregulation of the Indian banking sector to enter the bank assurance, assets
management, and securities brokering sectors. In addition, SBI has been working on reigning in
its branch network, reducing its payroll, and strengthening its loan portfolio. In 2003, SBI
reported revenue of $10.36 billion and total assets of $104.81 billion.

SWOT ANALYSIS OF SBI:

SBI has its roots since 1806 which was later transformed under various names, finally
SBI Was established after the act in parliament on May 1955. In the year 1959 SBI took over 8
state owned banks and since then it started to grow up carrying its heritage of servicing people at
various economic levels.

STATEMENT OF THE PROBLEM:

The study is dividing into two segments. The first segment is to find out the customer
satisfaction. Then in the second segments is to identify the ATM services towards customer.

OBJECTIVES OF THE STUDY:

 To study the problems faced by customers while using ATM.

 To determine the relationship between service quality.
 To study the level of satisfactions provided by the SBI Banks.

STUDY AREA:

The project entirely focused on the study of customer satisfaction towards ATM service in SBI
Bank around the Tiruvallur city.The study covers among 30 respondents through questionnaire
for ATM cardholders through using ATM machine to gain the required data.

SAMPLING OF STUDY AREA:

The research was carried on with the respondents who have using ATM cards through
ATM machine selection of sample:
The techniques adopted for the collections of data sample random convenient sampling
technique. About 30 respondents were interviewed for the study.
RESEARCH METHODOLOGY:

Research methodology is defined as the specification of method and procedures for acquiring
the information needed. It is plan of framework for doing the study and collecting the data in
order.

SOURCES OF DATA COLLECTION:

Data refers to information or facts data could be broadly classified as primary data are used for
the study.

Primary data collection:

Primary data was collected by primary survey method through a structured questionnaire this is
directed towards the aim of finding the research, which includes of the respondents.

Secondary Research:

A secondary data is those, which have already been passed through statistical process. The
secondary data was collected from company records, text book, journal, news, papers and
reports.

REVIEW OF LITERATURE

Sabir, Ghafoor, Akhtar, Hafeez and Rehman (2014), stated that today’s businesses compete
for customers and customer satisfaction is becoming a key performance indicator and an
essential element of business strategy. They added that customer satisfaction expectations are
key drivers behind customer satisfaction which in turn is an indicator of customer purchase
intensions and brand loyalty.

Elliot Boateng (2014), he states that ATM Centre’s should be opened in shopping Malls, Market
Centre’s and various campuses. ATM has a positive impact on customer’s satisfaction than the
traditional way of banking. Also, most of the non-users of ATM have the intent of diverting to
the usage of ATM.

Narteh (2013) opined those conveniences are regarded as the area or site of the ATM and
includes 24/7 accessibility of the services to the customers.

Pandian & Sharma (2013) said that in this modern world where money plays an important role
for survival ATM helps the people to take money whenever needed by them and also during
emergency conditions. Nearly 95% of respondents use ATM services, followed by internet
banking, and phone banking.

Tuli, Khatri & Yadav (2019) analyzed that most important factor which influence customer to
use the ATM services is its convenience in use & availability of machines.

Mr. Ramraj T. Nadar (2020) Assistant Professor, Guru Nanak College, Mumbai, India.
“Customers’ satisfaction towards ATM service. A study of bank customers in Navi published in
International Journal of Physical and Social Sciences Volume2, Issue 7 July

LIMITATIONS OF THE STUDY:

 The study is purely based on the information provided by the SBI ATM card
holders.
 The survey has been limited to the study area.
 The sample size is restricted to 30 only.

ANALYSIS OF DATA:

The data thus collected was compiled classified and tabulated the table was prepared from the
given information and questionnaire for collection of data using mathematical tools, then
proposed this data.

Percentage analysis:
It helps to find percentage value for the questions.

Percentage= number of respondents/ total number of respondents X100.

 DATA ANALYSIS AND INTERPREATION

AGE OF THE RESPONDENTS

TABLE NO: 4.1

AGE (IN YEARS) FREQUENCY PERCENT

19-35 years 27 90

35-45 years 3 10

Above years 0 0

Total 30 100

Source: primary data

INFERENCE

From the above table, it is inferred that 90% of the respondents were between 19-35 years, 10%
of the respondents are between the age group of 35-45 years.

GENDER OF THE RESPONDENTS

TABLE NO: 4.2

GENDER FREQUENCY PERCENT

Male 10 33.3

Female 20 66.7

Total 30 100

Source: primary data

INFERENCE
From the above table, it is inferred that the 33.33% of the respondents were male and 66.7% are
Female.

TYPES OF ATM SERVICES YOU ARE WILLING TO USE

DEPOSIT

TABLE NO: 4.3

DEPOSIT FREQUENCY PERCENTAGE

Yes 27 90

No 3 10

Total 30 100

Source: primary data

INFERENCE

From the above table, it is inferred that 90% of the respondents were willing to use deposits
through ATMs and 10% of the respondents are not willing to use deposits through ATMs.

TYPES OF ATM SERVICES YOU ARE WILLING TO USE

WITHDRAWAL

TABLE NO: 4.4

WITHDRAWAL FREQUENCY PERCENTAGE

Yes 26 86.6

No 4 13.34

Total 30 100

Source: primary data

INFERENCE
From the above table, it is inferred that 86.6% of the respondents were willing to use withdrawal
through ATMs and 13.34% of the respondents are not willing to use withdrawal through ATMs.

FINDINGS

PERSONAL INFORMATION

Around 90% of the respondents are in between 19-35 years.

Majority of the respondents are Female.

80% of the respondents are satisfied towards ATM facility available as per their
requirement.

90% of the respondents are willing to use deposit.

86.6% of the respondents are willing to use withdrawal.

56.6% of the respondents are willing to use recharge services.

13.3% of the respondents are often visit the bank.

53.3% of the respondents are satisfied towards the perception regarding ATM services.

70% of the respondents are came to know about ATMs.

50% of the respondents are facing the technical problem in ATM.

53.3% of the respondents are have to in a queue while using ATM Booth.

90% of the respondents are satisfied with ATM providing customers a good service.

SUGGESTIONS

The following are the suggestions provided from this study:

 The Bank should educate the customers and create awareness about ATM services among
the customers in age group of above 45.
 The bank can concentrate on the ATM services problems to make it easier so that the
customers can learn it quickly.
 The bank must motive the customers to use ATM services.

CONCLUSION
This study examined the ATM service satisfaction towards the customers of SBI Bank in
Tiruvallur city by circulating questionnaires. Social demographic analysis indicates that, majority
of the customers are satisfied with the SBI Banks. The modern banking system of ATM service
is new and innovated to attract the people and easy way of transacting to customers. Those days
we were gone when very few of traders transacted with banks. These are the days where
everyone need to deal with money and transact with banks. The real benefits and the objectives
of the ATM service will give it fullest benefits only when it is accessible even will be in the
hands of everyone to have bank account.
REFERENCE

AI-Hawari. M, “Measuring banks” develops the ATM service quality based on previous
studies include convenient location and user-friendless functions of ATM.


Gounares. S & Koritos C. Investigating the drivers of internet banking adoption decision.
A comparison of three alternative frameworks. International Journal of Bank Marketing,
26 (5), 282-304.


Khan “Investigated the study of Automated Teller Machine Service Quality and
Customer Satisfaction in Pakistani Banks”. Vol.13, No.3, pp.333-344.


Kumbhar, “Factors affecting customers, he identified various dimensions of ATM
Service quality as system availability, Easiness, Convenience and problem handling and
contact”.


Katono, “The most important e-service quality, focusing specifically on automatic teller
machines (ATMs)”. Vol. 6 No 3, pp.200-216.


Narteh. Service quality in automated teller machince, an empirical investigation.
Managing Service Quality. An International, 23 (1), 62-89.

Elliot Boateng (2014) Impact Assessment of ATM on customer satisfaction of Banks in
Ghana, Adrri Journal of Arts and social sciences. Vol7, No 7(1)
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