Chapter 1

Introduction

Today banks carry out most of the activities taking place in both money and capital market,
because banks are fully computerized with the help of computer, we can overcome the draw
backs of the manual systems which have been followed over many decades. Among the various
services, ATM service is more preferable and convenient to the people, because the modern
world is fully computerized and it is easy to access to them from anywhere. Through the ATM
service, withdrawal, deposit, balance enquiry and many more facilities are processed in quick
manner as they are designed by the telecommunication industry as a more efficient way to send
computer data over a single network.
The study wish to probe into the facts so as to understand the services provided by the banks
and also to know the strength and weakness of the ATM services provided by the banks. The
study is to have an insight in which the customer‘s satisfaction with the ATM services and also
to identify the customer‘s opinions / expectations with regards to the same.
In banking industry E-services are revolutionize the way business is conducted. Electronic based
business models are replacing conventional banking system and almost of banks are rethinking
business process designs and customer relationship management strategies .It is also known as E
banking ,online banking which provides various alternative E channels to using banking services
that is ATM ,credit card ,debit card ,Internet banking ,mobile banking, electronic fund transfer,
electronic clear services, etc. However, as per Indian e banking scenario ATM is most
acknowledged than other E channels.

This computer based machine stands for an automated teller machine (ATM) is a specialised
computer that allows You to complete bank transaction without the need to see a bank
representative many ATMs are conveniently accessible any time of day Or night and can be used
for everything from withdrawing or depositing money to checking your account balance to
transferring money between accounts. Here, we’ll delve deeper into what an ATM is common
transactions performed at ATMs and important things to know before using them.
The most common ATM transaction is the withdrawal of funds from one’s account. Banks
typically impose limits on the maximum account that can be taken out each day. Account holders
can often use an ATM to deposit cash or cheques. When making this type of transactions you
will be asked to insert the funds into a slot in the machine. When money is deposit in the form of
a check, the bank sometimes might not provide you with access to the funds until the check has
cleared.
Customer satisfaction towards ATMs generally tends to be positive. ATMs provide convenience
by allowing customers to access their funds and perform various transaction24 / 7 without
needing to visit a physical bank branch. However, factors like ease of use, availability, security
and functionality can influence customer satisfaction. Banks continually work to improve ATM
services and address any issues to maintain high level of customer satisfaction. Customer
satisfaction equal to customer perception of the service received customer expectation of service.
In this way it is easy to generalize that if the perception of the service received exceeds the
expectation of the service, customer’s issues satisfaction will be positive.
Customer satisfaction with ATM is generally influenced by factors such as ease of use,
reliability, Speed of transaction, security, and the availability of services. A user friendly
interface, clear instructions, and quick transaction processing contribute positively to the overall
experience. Reliable and functional ATMs that rarely encounter technical also play a significant
role in customer satisfaction.
Objectives of the Study
1. To study the growth and progress of ATM services.
2. To understand the various services rendered through ATM.
3. To evaluate the attitude of customers towards ATM services.
4. To measure the customer satisfaction towards ATM services.
5. To offer some suggestion to improve the working conditions of ATMs
Scope of the Study
Karur is a textile city .Due to various job opportunities in Karur, people from other states
started migrating to this area. People living in this area are highly qualified and settled with a
high income. Almost all the people in this study are salaried people, they hardly find time to go
to the bank for banking transactions. Since the ATM services are provided across the city, it is
easy for them to do their banking activities. ATM cards are commonly used in this study area.
The study is an attempt to understand the customer's satisfaction towards ATM services in
Karur.
 Chapter 2

Review of Literature
1. In Customer Relationship Management in banking sector' Dr.A.Sarangapami and T.Mamatha
(2008) found that the introduction of ATMs, internet banking and credit cards.
2. Khan (2010) said that the key dimensions of automated banking service quality include
reliability, ease of use, privacy, convenience and responsiveness.
3. Wolifinbarger and Gilly, (2003) argue that reliability is the strongest predictor of customer
satisfaction.
4. Lovelock (2000) identified that secured and convenient location, adequate number of ATMs,
user-friendly system and functionality of ATM are the important factors for the customer
satisfaction.
5. Moutinho(1992)argued that ATM facility resulted in speed of transactions and saved time for
customers.
6. Much of the researches say that there is an association between customer’s usage pattern and
the demographic profile (Hood 1979, Murphy1983).
7. Moutinho(1992) Argued that ATM facility resulted in speed of transactions and saved time for
customers.
8. Lovelock (2000) identified that secured and convenient location, adequate number of ATMs,
user- friendly system, and functionality of ATM are the important factors for the customer
satisfaction.
9. Wolfinbarger and Gilly, (2003) argue that reliability is the strongest predictor of customer
satisfaction.
10. Jhametal (2008) found that private banks have been able to more attract the younger
customer with higher education levels, who are comfortable with multi – channel banking, the
customers of the national Bank are older and more satisfied with the traditional facilities.
11. Khan (2010) said that the key dimensions of automated banking service quality include
reliability, ease of use, privacy convenience and responsiveness.
12. Motwani D. And Shrimali D. (2012) in their study highlights the awareness level and
satisfaction of customers regarding ATM services. This is a descriptive research in which
convenient sampling method was used to collect data. Various statistical tools have been used
like chi-square test, ANOVA, weighted mean to test the hypothesis. The conclusion reveals the
awareness level is affected by demographic profile of customers.
13. Sabir, Ghafoor, Akhtar, Hateez and Rehman (2014), started that today’s business complete
for customers and customer satisfaction is becoming a key performance indicator and an
essential element of business strategy. They added that customer satisfaction expectations are
key drives behind customer satisfaction which in turn is an indicator of customer purchase
intensions and brand loyalty.
14. In designing model for predicting the cash needs of ATM’s within a network for a single
financial institution, Long-short term memory (LSTM) recurrent neural networks (RNN)
15. The data set utilised for this research was made up of the transactions made at seven ATM’s
in karachi, Pakistan ,between June 2013 and December 2015.using the SMAPE(Symmetric
Mean Absolute Percentage Error) the results of the trials may be reported.
16. The main purpose of this research paper to provide the biometric security in the ATM
transaction and for this purpose used biometric identification with the mobile number.
17. In research paper define that data security is important concept in banking sector when the
data transmit from ATM machine to bank server.
18.When the customer access the ATM machine then place finger on the figure print
modulethen system generate 4-digit code and send it to the customer’s registered mobile number.
19.The literature of behavioural studies on ATMs has mainly focused on adoption and diffusion
of technology, impact of technology adoption from customers’ perspective, suppliers’
perspective, and the banker’ perspective.
20. Suppliers of ATMs are also under pressure to provide ATMs to bank which can meet the
latest customer needs.