Factors Influencing Customer Satisfaction with ATM Banking

Abstract

All banks in Malawi deploy Automated teller machines (ATMs) making ATM banking the second most popular access channel to banking products/services. Therefore, to continue achieving competitive advantage through ATM banking, bank managers need to know the key features of ATM banking whose performance greatly influence customers' satisfaction. 353 ATM card users rated the performance of ATM banking in 25 service quality attributes and further rated their perceived satisfaction with ATM banking. The regression analyses of the performance of the 25 ATM banking attributes and customers' satisfaction first reveal that the 25 attributes adopted from empirical studies provide a perfect model for predicting customer satisfaction. Secondly, reliability and responsiveness are the key service quality dimensions of ATM banking and thirdly, the analyses revealed 12 key attributes that influence customers' satisfaction with ATM banking and these are: ATM fees charged, ATMs not out of order, cleanliness of ATMs and ATM stations, accuracy of ATM transactions, ease of access to ATMs, readable slips, convenient location, employee accessibility to solve ATM problems, privacy at ATM stations, employee speed in solving ATM issues, ease of application process for ATM cards and cash availability in ATMs. Key words: customer satisfaction, ATM banking features, and ATM service quality. INTRODUCTION Automated teller machine (ATM) banking is a popular access channel to banking products and services behind branch banking. Banks have been offering more access points to newer ATM technologies that are faster, secure and with a wider range of services that include cash depositing to achieve competitive advantage through the ATM banking. To retain bank profitability, expanding the base of satisfied customers is of essence. As such the concept of customer satisfaction and what makes customers satisfied is an area of frequent market studies. Knowing the factors that influence customers' satisfaction with ATM banking is of significance when it comes to deployment of ATM technologies. Empirical studies have shown that customer satisfaction is an antecedent to customer loyalty (retention) and long term profitability (Bloemer and Kasper, 1994; Jones and Sasser, 1995; Macintosh and Lockshin, 1997; Taylor and Baker, 1994) making the concept of customer satisfaction important in firm's operations and marketing.