The Effects of Atm Cards on Customer Satisfaction in Nigeria’s Banking Industry
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY In this modern society or the entire world has grown to a level that the use of computers in the chain of production is inevitable. The genesis of automation in the banking industry in Nigeria can be linked to the on-going struggle by individual banks for survival and growth. Automation means the use of automatic equipment in place of manual labor, also can be the use of machine for four D’s task where the four D’s stands for Dangerous, Difficulty, Dirty and Dull. In Nigeria, Automatic Teller Machine technology is becoming more common than it ever was. ATMs appear to be mainly provided by banks in Nigeria. Yet, their widespread adoption by customers of banks is not clear, as it appears that peoples’ perception of the technology is diverse, which in turn affects their decision to actually use ATMs or not. ATMs are set up to provide 24 hour services to bank customers, who cannot expect to be able to transact with Adoption of ATMs in Nigeria banks in the same period of time (Ugwu, 2008). Nevertheless, it is observed that banks still have many customers transacting with tellers within their doors, and queues are still not a thing of the past inside banks. The level of patronage of ATMs is also not well defined, and even epileptic at best, as sometimes long queues were observed outside ATMs, while at other times, there are few or no customers. It is consequently, important to discover why this is so, because as a technology, ATMs are supposed to make life easier and more efficient for the customers of banks. Concerning banks, ATMs ought to assist in improving a banks’ turnover, therefore low patronage of ATMs by their customers could affect the banks’ profit adversely. Therefore, there is a need to study the constructs that could affect the adoption of ATM Cards. Using a popular and widely used theory such as the theory of diffusion of innovation, it is expected from this study that the extent
1.1 BACKGROUND OF THE STUDY In this modern society or the entire world has grown to a level that the use of computers in the chain of production is inevitable. The genesis of automation in the banking industry in Nigeria can be linked to the on-going struggle by individual banks for survival and growth. Automation means the use of automatic equipment in place of manual labor, also can be the use of machine for four D’s task where the four D’s stands for Dangerous, Difficulty, Dirty and Dull. In Nigeria, Automatic Teller Machine technology is becoming more common than it ever was. ATMs appear to be mainly provided by banks in Nigeria. Yet, their widespread adoption by customers of banks is not clear, as it appears that peoples’ perception of the technology is diverse, which in turn affects their decision to actually use ATMs or not. ATMs are set up to provide 24 hour services to bank customers, who cannot expect to be able to transact with Adoption of ATMs in Nigeria banks in the same period of time (Ugwu, 2008). Nevertheless, it is observed that banks still have many customers transacting with tellers within their doors, and queues are still not a thing of the past inside banks. The level of patronage of ATMs is also not well defined, and even epileptic at best, as sometimes long queues were observed outside ATMs, while at other times, there are few or no customers. It is consequently, important to discover why this is so, because as a technology, ATMs are supposed to make life easier and more efficient for the customers of banks. Concerning banks, ATMs ought to assist in improving a banks’ turnover, therefore low patronage of ATMs by their customers could affect the banks’ profit adversely. Therefore, there is a need to study the constructs that could affect the adoption of ATM Cards. Using a popular and widely used theory such as the theory of diffusion of innovation, it is expected from this study that the extent