ASSESSMENT OF ATM SERVICE AND CUSTOMERS’ SATISFACTION: CASE OF SELECTED SWITCHED MEMBER COMMERCIAL BANKS IN ADDIS ABABA CITY

Abstract

It is a recent history in Ethiopian banking industry that competing banks share common facilities to give better service for customers via inter bank Switch with the view to improve customer services and maximize their profit .hence, the objective of the study was to assess the level of usage of ATM banking services and customers satisfaction in aftermath of EthSwitch. To achieve the research objective descriptive survey design was employed; both primary and secondary data were used. The primary data was collected from respondents using questioners consists of five point likert scale and some close ended. Convenience sampling technique was used to collect the data; designed questionnaires were distributed to 400 respondents having two and above years ATM usage experience. From total of 400 distributed questionnaires 385 were returned from the customer of the selected switched member banks. The collected data are analyzed using descriptive analysis like tables, percentages, mean and standard deviation. After interoperability of all banks ATMs the research finding shows that majority of the customers’ are dissatisfied with the ATM services due to various challenges associated with ATM such as; customers’ accounts being debited without dispensing, Shortage of money in ATM's, ATM malfunction due to connectivity problems and power, delayed response time in case of errors transaction, availability of limited services, high service charge for ATM service, Machine complexity , and ATMs late to updated balances are major problems causing dissatisfaction. Even there are problems; surprisingly the customers do prefer to get the service through the shared ATMs, because it saves time and convenience. Finally, the study recommend banks to improve patronage of the ATM services and challenges encountered by customers when using the ATM should be addressed to minimize the dissatisfaction and give customers enough confidence in the use of the ATM and will encourage them to recommend it to nonusers.