Empirical Study of the Use of Automated Teller Machine (ATM) among Bank Customers in Dhaka City, Bangladesh

Abstract

Automated Teller Machine (ATM) is perceived to offer considerable benefits and challenges both to the banks and their customers, yet these are rarely empirically investigated. The study was conducted in purposively selected eight ATM location points of four banks in Dhaka City, Bangladesh. The sample size was made up purposively selected one hundred and eight-two (182) and another twelve (12) respondents for survey and in-depth interviews respectively. Data were collected and analyzed through quantitative and qualitative methods. Results showed that most respondents were utilizing the machine for various purposes. Also, respondents mentioned convenience, quick funds transfer, and time saving as the real benefits of the machine. Some respondents mentioned fear of armed robbery attack, technical hitches, invalid debit and perennial network failure as the challenges of utilizing the machine. On the whole, most respondents (67.0%) evaluated the machine as having benefited them more than it had cost them. The bivariate analysis showed that more female bank customers (?²=6.469; p<0.05); more relatively younger customers (?²=66.846; p<0.05); more customers with relatively higher level of education (?²=26.892; p<0.05) and more student customers (?²=61.196; p<0.05) agreed the machine had benefited them more than other groups. Qualitative data also confirmed the various benefits and challenges of the machine to the customers. Using the modernization and rational choice theories, the study argued that ATM is a modern technology which some bank customers were selectively adopting based their real subjective and objective experiences. The study concludes that for the benefits of ATM to be consolidated and to gain wider acceptance among bank customers, the challenges inherent in the machine should be addressed.

Keywords: ATM, bank customers, benefits & challenges, modernization, rational choice