SATHYABAMA INSTITUTE OF SCIENCE AND TECHNOLOGY

SCHOOL OF MANAGEMENT STUDIES

A STUDY ON CUSTOMER SATISFACTION TOWARDS ATM

SERVICES PROVIDED BY PUBLIC SECTOR BANKS IN
VELACHERY, CHENNAI

MINI PROJECT- VIVA VOICE

Project Guide - Dr.M.Soundarya
Assistant Professor,
School of Management studies
Student Name : SATHISHKUMAR R
Register number:
 INTRODUCTION

 ATM stands for Automated Teller Machine, a machine that allows customers of a banking institution to
transact banking business without any help as a cashier i.e. human clerk known or human bank teller.
 Automated teller machine also called automated banking machine.
 An automated teller machine is a computerized telecommunication device.
 ATM is an important invention for banking sector.
 Automated Teller Machines have found its rapid popularity because of its need in common men life.
 Contd..
There is always two sides of a coin, the Automated teller machines
which facilities the customers by providing better service also has a
darker side.
A number of customer have faced cheating and frauds through
Automated Teller Machines by withdrawal from their account not
transited by client himself and thereby customer have some time faced
unpleasant experience.
It is challenge now for the manufactures of Automated teller machine
how to minimize the frauds for keeping Automated teller machine in
functioning with its popularity being kept intact.
 LITERATURE REVIEW

SULTAN SINGH & KOMAL (2009) In the work entitled “Impact of ATM on Customer Satisfaction (A
Comparative Study of SBI, ICICI& HDFC bank)” examines the present ATM facilities provided by SBI,
ICICI & HDFC Bank and the factors affecting the choice of ATM services. The study based on primary
data has been collected through questionnaire. A sample size of 360 respondents has been taken
including120 for each bank i.e. SBI, ICICI & HDFC bank. The study reveals that material satisfaction
level is highest in SBI, then second is ICICI Bank and third is HDFC Bank. This is due to the size of the
respective bank and number of years of its establishment.
PIJUSH CHATTOPADHYAY & DR. S SARALELIMATH (2012),
In their study entitled “Customer Satisfaction in ATM Services: a Study with the Reference to Indian Bank
at Tiruchirappalli Corporation” examine the relationship between demographic variable and preference to
use ATM. The data was collected from 300customers from three sample cooperative bans in Pune city
through a structured questionnaire. Frequency and Percentage analysis and chi-square tests are applied for
data analysis and interpretation. The study reveals that a majority of the customers are highly satisfied with
ATM services and essential services. The customers prefer ATM with time and cost utility which provides
efficient services. Despite drawbacks in ATMs, it is still preferred as it benefits the bank, employees and
customers.
 Contd..
SEETHALAKSHMI & KAVITHA (2013) In their study “Customer Satisfaction in ATM Services: a Study with the
reference to Indian Bank at Tiruchirappalli Corporation” examine the customer satisfaction in ATM service provided
by banks in India. The data was collected from 100 respondents through a structured questionnaire. Collected data
was analyzed according to the objectives of the present research and result of the statistical analysis indicates that
there is no relationship between the demographic factors and customer satisfaction. The study reveals that customer’s
satisfaction in location and process of withdrawing the money under ATM scheme is high, whereas the satisfaction is
comparatively low in the aspects of transaction charge and prompt delivery of ATM card and suggested that banks
should proactively monitor customers’ preferences with regard to the transaction fee; delivering of ATM card
promptly and issue of new cards due to loss of original cards in order to retain their customers
SRINIVASA RAO, D RAJASEKHAR& NVIJAYARATNAM (2013)
In their study entitled “An Empirical Study of Customer’s Satisfaction in ATM Service” examines the various
dimensions of service quality and its effect on the customer satisfaction. The study based on primary data has collected
from the 120 respondents who are the customers of Andhra bank and ICICI banks of Vijayawada city through structured
questionnaire. The study reveals that the respondents of the Vijayawada are satisfied from the ATM services of public
and private sector banks. Respondents also prefer convenience and comfort of the ATM locations in the city.
 Contd..
DR.SMITA V. BHIDE & MRS.SHRADDHA M. BHOME (2014)
In the work “A Study of Customer’s Preference towards ATM Services in Co-Operative Banks in Thane City”
examines the awareness and preference to use ATM services and the problems faced by customers while using
ATM services offered by select Cooperative banks in Thane city. The data was collected from sample of 100
customers from three sample co-operative banks in thane city. Frequency and Percentage analysis are applied
for data analysis and interpretation. The study reveals that there is an increase in the usage of these machines
and waiting in long queues is one of the bigger problems faced by ATM users. This shows the need of
additional machines to be installed at these high-demand areas.
KANIKA VERMA (2014)
In their study “Measuring Customer Satisfaction towards ATM Services -A Comparative Study of Union Bank
of India and Yes Bank” examine the satisfaction level of customers of Union Bank of India and Yes Bank
based on various aspects related to ATMs. The data was collected through survey from bank customer and
later on will be analyzed by statistical technique and tools like Descriptive Statistics, Percentage Method, and
Ranking Method. The study reveals that majority of the respondents in both the banks dissatisfied with the
ATM Grievance settlement. Hence it is suggested the banks to developed and improvise the proper mechanism
to resolve the grievance settlement, as it leads to customer comfort and satisfaction.
 Contd..
 MS.VARALAKSHMI ALAPATI & MS.SHRUTHI VNAYAK(2015)
In their study entitled “A Study on Customer Satisfaction with the ATMs of SBI and ICICI Bank and Role of
ATMs for a Greener Environment” examine the level of customer satisfaction associated with various aspects
of ICICI Bank and SBI ATM. The study covers sample size of 150 respondents with the structured
questionnaire in Manipal, Karnataka. The study reveals that banks should take up various measures to
educate customers on the usage of ATMs. Quite a large number of both the bank’s ATMs are unaware of the
various facilities provided by the ATMs other than just cash withdrawal and balance statement. They should be
made aware of the facilities like transfer of funds, biller payments, mobile recharge, donating to charity etc. so
that the customers can make better use of the ATMs by deriving all its benefits.
 JOSEPH AND STONE (2003)
Joseph and Stone (2003) investigated some of the various roles technology plays in the US banking sector and
how technology in general impacts the delivery of banking service. The author developed a grid for bank
managers when making decisions concerning the priority of implementation of service-oriented technology.
Authors conducted an empirical evaluation of US bank customer perceptions of the impact of technology on
service delivery in the banking sector. They examined the United States customers’ perception of ATM quality
and found that user-friendly, convenient locations, secure positions, and the number of ATM provided by the
banks are essential dimensions of ATM service quality.
 Contd..
 DARCH AND CALTABIANO (2004)
Darch and Caltabiano (2004) explored the relationship between demographic, user situational, attitudinal variables
and ATM use in an Australian sample of older adults. These adults were volunteers aged 60 years and above, who
conducted their own banking transactions. Technology, perceived control and perceived user comfort were found to
have an independent significant effect on ATM usage. Age, education, attitudes and user situational variables were
found to be related to ATM use, only technology experience, perceived user comfort and control were found to be
determinants of ATM use. In another study in Bangladesh, Shamsdouha et al. (2005) found that 24 hours service,
accuracy, and convenient locations were main predictors of customer satisfaction. The study also indicated lack of
privacy in executing the transaction, fear of safety and complexity of the machine were the major cause of concern
for the customers.
 ISLAM ET AL. (2007)
Islam et al. (2007) examined the level of satisfaction of ATM card holders of a leading bank (HBSC) in Bangladesh.
300 well-structured questionnaires were distributed to ATM card holders. The study found significant relationship of
ATM service quality with customers’ satisfaction. The study identified that location, personnel response, quality of
currency notes, promptness of card delivery and performance of ATM were positively and significantly related to
customer’ satisfaction. The study also identified that the security, frequent breakdown of machine, and insufficient
number of ATM were major contributors of customers’ dissatisfaction.
 Research Gap

The researcher collected 50 reviews from both National and International studies.

The literature reviews were selected from numerous studies that have been carried out in India and other countries. In

order to fill up this research gap, the present study has been undertaken by the researcher. In this study, the researcher

has concentrated on customers satisfaction towards ATM Services availed by commercial banks.

Though a large number of research studies have been attempted to analyze the ATM services provided by , So far no

research study has covered the velachery city .

In this sense, the present study tries to fill up the research gap through its observations and analyses of the data

collected for its purpose.

 OBJECTIVES OF THE STUDY

The major objectives of the study are:-

[1] To know the conceptual framework of Automated Teller Machine.
[2] To analysis the customers opinion towards the ATM services availed by the public sector banks
operating in velachery.
[3] To identify the customers satisfaction towards the ATM services availed by the public sector
banks operating in velachery.
[4] To asses the problems faced by the customers while availing ATM Services by the public sector
banks in velachery.
[5] To suggest suitable strategies for effective usage of ATM Services.
 Hypothesis of the study
 There is no significant association between Age and Educational qualification.
 There is no significant difference between Age and customers satisfaction towards ATM services.
 There is no significant association between Age and customers opinion towards ATM Services
 There is no significant difference between Educational qualification and problems faced by
customers while availing ATM services.
 RESEARCH METHODOLOGY
[1] SOURCE OF DATA :
The study is based on primary as well as secondary data. It exhibits a clear picture about views expressed by the
sample customers of the banks functioning in velachery city about the customer satisfaction in ATM services.
Primary data was collected from 130 respondents and secondary data was collected from text books, record of
banks, various websites.
[2]SAMPLING METHOD AND SIZE :
Convenience samples method was used to select the sample respondents from 130 customers of all banks
branches operating in velachery.
[3] METHOD OF COLLECTING DATA:
Questionnaire method was adopted for collecting data from the customer of banks operating in velachery.
[4]TOOLS FOR ANALYSIS ;
Percentage analysis, Chi-Square, ANOVA were used for analyzing the data.
 ANALYSIS AND INTERPRETATION
GENDER - WISE CLASSIFICATION OF THE RESPONDENTS

S. NO Gender No. of Percentage

respondents
1 Male 48 37
2 Female 82 63
3 Total 130 100

INFERENCES:
Table and figure helps to infer that among 130 respondents contacted, 37% are male respondents and the
remaining 63% of them are female respondents. Hence, it can be concluded that ATM services provided by the
banks operating in VELACHERY are highly utilized by female respondents.
 MARITAL STATUS OF THE RESPONDENTS

S. NO Marital status No. of Percentage

respondents

1 Married 61 47

2 Unmarried 69 53

3 Total 130 100

INFERENCES
As per table, 47 percent of the 130 respondents surveyed were married, while the remaining 53
percent were unmarried. As a result, it can be stated that unmarried respondents make maximum use
of ATM services provided by the banks in VELACHERY.
 AGE – WISE CLASSIFICATION OF THE
RESPONDENTS
S. Age No. of Percentage
NO respondents
1 Below 20 10 8
2 20 – 30 73 56
3 31 – 40 22 17
4 41 – 50 13 10
5 Above 50 12 9
6 Total 130 100

INFERENCE
According to table 4.3, 8% of the 130 respondents contacted are under the age of 20, another 56%
are between the ages of 20 and 30, 17% are between the ages of 31 and 40, 10% are between the
ages of 41 and 50, and 9% are beyond 50. To be specific, the ATM was used mostly by 56 percent
of customers in the age group of 20 to 30 years.
 REASON FOR USING ATM SERVICES BY THE RESPONDENTS

S.NO Purpose of ATM No. of Percentage

respondents
1 Cash deposit 29 22%
2 Withdrawal of cash 80 62%
3 Mini statement 11 8%
4 Check account balance 6 5%
5 Pin change 4 3%
6 Total 130 100%

INFERENCE
Table shows that 22 percent of respondents preferred ATM services for depositing cash, 62 percent
preferred ATM services for withdrawing cash, another 8% preferred ATM services for taking a mini
statement, another 5% preferred ATM services for checking account balance, and the remaining 3%
preferred ATM services for changing their pin. As a result, the majority of respondents (62%) use the
ATM to withdraw money. It is evident that in order to escape the long queues at the bank, customers
prefer to withdraw their money from ATMs. It also reduces the work burden of bank employees.
 Objective 2: Customers Opinion towards ATM Services

S.NO Machine works No. of Percentage

respondents
1 Works all time 51 39%
2 Frequent 30 23%
disturbance
3 Sometimes out of 37 28%
service
4 Always in out of 12 9%
service
5 Total 130 100%
 The majority of responders 39% opined that the ATM work all the
time. 28 percent of respondents say that sometimes ATMs are in out
of service, 23 percent says that ATMs are frequently disrupted, and 9
percent says that ATMs are always out of service. 9 percent of
respondents claim that they have never had a difficulty in using an
ATM.
Objective 3: Satisfaction level towards customers while availing
ATM Services

S.NO Satisfaction Level No .oF Percenta

respondents ge

1 Highly satisfied 34 26%

2 Satisfied 59 45%

3 Neutral 23 18%

4 Dissatisfied 8 6%

5 Highly dissatisfied 6 5%

6 Total 130 100%

Contd..
 Above table represent that 26% of the respondents contacted were
Highly satisfied with the services of ATM , 45% of them were
satisfied with the ATM services, another 18% of the respondents are
neutral with the services, and 6% of the respondents are dissatisfied
with the services, remaining 5% of them are highly dissatisfied with
the ATM services. Hence, majority (45%) of the respondents are
satisfied with the ATM services.
Objective 4: Problems faced by customers while availing ATM Services by the
Public Sector Banks

S.NO ATM problems Always Very often Sometimes Rarely Never

1 Cards get blocked 24 14 36 40 16

2 Machines out of cash 12 27 20 33 38

3 Non printing of 5 17 6 42 59
statement
4 Machines out of order 14 18 19 42 37

5 Long waiting time in 22 18 29 36 25

queues
6 Lack of privacy 30 25 33 19 23
Contd..
 Only 14% of respondents feel their cards are blocked frequently; 40%
say their cards are blocked occasionally.
 38% of those respondents believe that ATM machines never run out of
cash. Only 12% of respondents believe ATMs are constantly out of
cash.
 59 percent of respondents believe they have never received a non-
printing statement from an ATM machine.
 Only 5% of respondents believed that ATM machines never produce
statements. According to 42 percent of respondents, ATM machines are
rarely out of service.
 MAJOR FINDINGS

[1] The majority of responders 39% opined that the ATM work all the time. 28 percent of
respondents say that sometimes ATMs are in out of service, 23 percent says that ATMs are
frequently disrupted, and 9 percent says that ATMs are always out of service. 9 percent of
respondents claim that they have never had a difficulty in using an ATM.
[2] 45% of the respondents are satisfied with the ATM services.
[3] Only 14% of respondents feel their cards are blocked frequently; 40% say their cards are
blocked occasionally.
38% of those respondents believe that ATM machines never run out of cash. Only 12% of
respondents believe ATMs are constantly out of cash.
59 percent of respondents believe they have never received a non-printing statement from an
ATM machine.
Only 5% of respondents believed that ATM machines never produce statements. According to
42 percent of respondents, ATM machines are rarely out of service.
 Suggestions

[1] Banks have to fill the cash in ATM because some time the cash condition is out of
the order.

[2] Banks need to concentrate on addressing the grievances of the ATM customers
through efficient redressal measures to enhance the customer satisfaction.

[3] Bankers may alert the SMS immediately whenever they withdrawal the cash from the
ATM.

[4] Bankers should take necessary steps to avoid the technical issues faced by the
customers it should immediately addressal.
 CONCLUSION

 The result of the study shows that ATM services provided by the banks are highly utilized by female
respondents in VELACHERY.
 Further the results of the analysis highlights that majority of the customers are highly satisfied with
the ATM services provided by the banks in VELACHERY.
 Though the customer are satisfied with the ATM services still they face problems relating to SMS
alert, ATM out of services, lack of privacy, card get blocked and others.
 To conclude the customer are facing some of the problems regarding the ATM services.


The bankers should find the solution and make efforts to improve the ATM services in a better way .
 QUESTIONAIRE

 Gender :
(A) Male (B) Female
 Married status :
(a)Married (b) unmarried
 Age :
(A) Below 20 (B) 20-30 (C) 31-40 (d) 41-50 (E) 50 Above
 Education qualification :
(A) SSLC (B) Higher secondary (C) Diploma (D) Graduate (E) Post Graduate (F) Other
 Occupation :
(A) Government Employee (B) Private Employee (C) Self Employee (D) Student (E) House wife
(F) Other
 Monthly Income
(A) Below Rs.10,000 (B) Rs.10,0001to 20,000 (C) Rs.20,001 to 30,000 (D) Rs.30,001 to 40,000
(E) Rs.40,001 to 50,000
 Contd
 Do you have Bank Account
(A) Yes (B) No
 If yes specify the name of the bank_______________
 Do you have debit card?
(A) Yes (B) No
 If yes, then how many debit cards do you have?
(A) 1 (B) 2 (C) 3 (D) 4 (E) 5
 Which type of debit cards do you have?
(A) Rupay (B) Master (C) Visa (D) Maestro
 How often you use the ATM?
(A) Once a week (B) Alternate days (C) Occasionally (D) Once in a month
 For what purpose do you often using the ATM service
(A) Cash deposit (B) Withdrawal of cash (C) Mini statement (D) Check account balance (E) Pin change
 Contd
 Availability of cash on ATM service at any time :
(A) Always (B) Very often (C) Sometimes (D) Rarely (E) Never
 Whether the withdrawal limit prescribed in ATM is sufficient
(A) Sufficient (B) Not Sufficient
 Whether you are getting instant SMS alert for any ATM/CDM transaction?
(A) Getting Instant SMS (B) Not at all getting instant SMS (C) Sometimes (E) Never
 Are you aware of the toll free number for customers service, if your AT card is lost or stolen
(A) Aware (B) Not Aware
 What is your recommendation to improve the ATM service provided by the bank :
(A) More user friendly machines (B) enhancement of withdrawal limits (C) facility to pay utility bills
(D) increase of safety – security (E) others
 Is the ATM machine works all the time or sometimes it remains out of service?
(A) Works all time (B) Frequent disturbance (C) Some time out of service (D) Always in out of service
 Contd
 Satisfaction Level on Technology Usage
Highly
ATM Services Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Promptness of card delivery
Number of Transactions
Quality of currency notes
Conveniently located

 Problems of Technology usage

ATM Problems Always Very often Sometimes Rarely Never
Cards get blocked
Machine out of cash
Non Printing of statement
Machine out of order
Long waiting time in
queues
 Contd
 Are you satisfied with SMS service charge?

(A)Highly satisfied (B) satisfied (C) Neutral (D) Dissatisfied (E) Highly dissatisfied.
 How satisfied are you with the ATM service provided by the bank :

(A) Highly satisfied (B) satisfied (C) Neutral (D) Dissatisfied (E) Highly dissatisfied
 N K
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