CAUSES AND EFFECTS OF ATM DOWN TIME ON FOREIGN CURRENCY GENERATION PERFORMANCE (THE CASE OF NAZARETH ARADA DASHEN BANK)

Abstract

Automatic Teller Machines (ATMs) provide a critical service to bank customers and an increasingly important source of revenue to the banks themselves. ATM Transactions have become an essential component of the banking industry. The downside of this vital role of ATMs is that downtime in ATM machines can result in major headaches for financial institutions and cause customers to be dissatisfied, eventually leading to lost revenues and decreased profitability. This study investigates significant dimensions of ATM downtime, its causes and effect on FCY generation performance of Nazareth Arada Dashen Bank. Questionnaire was used to collect the data from a convenience sample of 40 customers who are foreign electronic card holders who consistently uses the branches ATM. An interview was also made with 3 key personnel of the branch and 4 payment card department (PCD) supervisors, who are directly involved in the service. The results of this study indicate that efficient operation, cut down in ATMs downtimes, and increase the reliability of Dashen Bank and responsiveness to these potential problems. Consequently a significant dimension of ATM service quality positively and significantly contributes toward customer satisfaction, which ultimately contribute for high revenue and increases foreign currency gain. The study makes a significant contribution to the effective monitoring and management of an ATM down time, literature because few empirical studies are available dealing with this new segment of electronic banking, the Automatic Teller machines (ATM) in Ethiopia.