The Impact of ATM Service Quality on Customer Satisfaction and Future Prospects :In the Case of CBE

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


Currently the banking service is well equipped with innovations and as the application of the technology in the banking industry is becoming so significant firms have made huge investment on technology based banking and shifting from bricks and mortar banking to such branchless mode of banking . Following such shift customers are also shifting to technology based banking service due to perceived usefulness, convenient to use , privacy and freedom of mobility. Thus the objective of the study was to examine the effect of ATM Service quality dimensions on customer satisfaction and future prospects of ATM in the case of CBE. With a high emphasis, a quantitative approach based on a convenience sampling technique was used, in which a structured survey questionnaire was employed to collect data from the customers. Also with less emphasis a qualitative method which is a structured interview was used to collect data from the bank. For data analysis a descriptive and inferential statistics were used while to aid computation SPSS was applied. The results of the study reveal that the effect of ATM service quality dimensions on customer satisfaction and future prospects of ATM is direct and significant. Also the results show that the effect of customer satisfaction on future prospects of ATM is direct and significant. More than 60% of respondents signed on positively showing that customers have interest and found out convenient to use the banking technology instead of having interaction with human tellers. It also allows customers to transact their banking service quickly, it saves time, their personal information is not misused by their bank ,support service is good. Hence it can be concluded that the overall application of CBEATM banking has a bright future in the Ethiopian banking industry and CBE has a chance to mobilize the potential customers and reap more profits through provision of quality service using the banking technology as an interface. To improve the service delivery and thereby standardize the service offering the bank has to work hard more on the technology based banking such as ATM in such a way that it can bring standardization of offerings and create more conducive technology based banking environment which is convenient and accessible with more freedom mobility. Also the bank has to increase features and improve the facilities of the technology based banking service in such a way that customers can receive a wider range of financial services. Specifically providing simple, differentiated customer-focus services based on changing and growing customer behavior and preferences. Studies conducted by (Ramsay and Smith 1999; Patricio et al. 2003; Lang and Colgate 2003) cited in AL-Hawari etal.(2005) show that customers prefer to use in combination the technology (ATM, internet and mobile banking) and yet the focus of this study was only on ATM banking service. So further research may assess the effect of ATM, internet and mobile banking in combination so that more insights will be generated. Finally as the study is cross-sectional in its nature and only the relationships instead of the causal direction was addressed, future studies can use the longitudinal studies to show the confirmation of causality.



ATM-banking, customer satisfaction, ATM service quality