Investment on Automated Teller Machines and Banks’ Customer Satisfaction in Nigeria

Abstract

The issue associated with off banking hall and off hour transactions is currently taking a center stage in the Nigerian banking sector which influenced banks to provide Automated Teller Machines in order to dispense cash, make financial enquiries as well as funds transfers for the purpose of rendering efficient banking services to customers. But recently in Nigeria, deposits were also made through them in some banks. In Nigeria, it performances was bedeviled by some factors which necessitated this paper to focus on the relationship between investment on Automated Teller Machines and customers satisfaction using selected Banks in Nigeria. The study made use of secondary data obtained from annual reports and financial statement of sampled banks quoted in the Nigerian Stock Exchange for the period 2001-2010. Data were analyzed through the Ordinary Least Square regression model using the Statistical Package for Social Sciences. Finding revealed that investment on Automated Teller Machines, related software and hardware had a significant impact on banks’ customer satisfaction as measured by Total Deposit. The study recommends that banks should increase their investment on Automated Teller Machines, focus more on data security aspect and service diversification in order to build a strong and reliable relationship with customers for increased profitability

Keywords: Automated Teller Machines, Banks, Customer Satisfaction, Hardware, Software, Total Deposits, Profitability