An Emprical Study of Customers' Perception Regarding ATM in Delhi and NCR

Integral Review- A Journal of Management p-ISSN : 0974-8032, e- ISSN : 2278-6120, Vol. 6 No. 1, June 2013, pp 47 - 60

http://intergraluniversity.ac.in/net/journals Andpublications.aspx

AN EMPIRICAL STUDY OF CUSTOMERS' PERCEPTION REGARDING AUTOMATED TELLER MACHINE IN DELHI AND NCR Sunita Bishnoi Associate Professor, DAV Institute of Management Faridabad, Haryana, India

Abstract E-Banking provides various e- channels for using banking services like ATMs, credit cards, debit cards, internet banking, mobile banking, electronic fund transfer (EFT), electronic clearing system etc. However as per the Indian e banking scenario ATM is the most acknowledged than any other e-channels. The Indian ATM industry has seen explosive growth in recent times. The present study has made an attempt to find out the perception of customers regarding various issues related to ATM/Debit cards. The study concludes that ATM is very convenient mode of electronic banking. The demographic relations among various issues are also highlighted in this study. To achieve the objectives a survey of 220 respondents who are using ATM services has been conducted and the collected data was analyzed with the help of SPSS by using appropriate statistical techniques. Key Words: Electronic banking, ATM Services, Customers Perception, Information and Technology, Demographic Variables, ANOVA and t-test, public sector banks, private sector banks. 1. Introduction: The banking sector has become completely dependent on technology as the service/product delivery channel. Technology is identified as the single strongest factor that provides a bank with a competitive edge over others (Sai Tapla). The banking has undergone a major change due to the adoption of E-banking. One of the latest channels of distribution to be used in the financial services organizations is electronic banking; this method was established in the mid-1990s in some countries, thereafter, speedily covered all the world (Allen et al, 2001). E-banking system not only generates latest viable return, it also offers its better dealings with customers (Jannatul, 2010). E-Banking provides various e- channels for using banking services like ATMs, credit cards, debit cards, internet banking, mobile banking, electronic fund transfer (EFT), electronic clearing system etc. However, as per the Indian e banking scenario ATM is the most acknowledged as compared to than any other e-channels. The Indian ATM industry has seen explosive growth in recent timesz (Kumbhar 2011-12). Banks have been positioning ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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Now we can deposit cash in ATMs up to certain cash limit. While the ATM is a great service for customers, for the banks it means immense savings on the cost of operations. While a typical cash transaction carried out in a bank's branch premise would cost Rs 40 that in an ATM will only cost Rs18 translating into a cost saving of Rs 22 per transaction (Singh, and Komal, 2009). Table 1: Branches and ATMs of Scheduled Commercials Banks 2009 Bank Group Nationalized Bank State Bank Group Old Private Sector Banks New private sector banks Foreign sector banks Total

2010

Branche s

%

ATMs

39376

60.95

16062

2011

%

Branch es

%

Branch es

%

ATMs

%

ATMs

%

15938

36.51

41596

60.14

19702

32.75

44298

59.76

24836

33.33

24.86

11339

25.98

17229

24.91

20978

34.86

17913

24.16

24651

33.09

4673

7.23

2674

6.13

4952

7.16

3390

5.63

4817

6.50

4126

5.54

4204

6.50

12646

28.97

5075

7.34

15075

25.05

6785

9.15

19525

26.21

293

.46

1054

2.41

308

.45

1026

1.71

317

.43

1367

1.83

64608

100

43651

100

69160

100

60171

100

74130

100

74505

100

Source: RBI Annual Bulletin 2009, 2010, and 2011.

Table 1 shows that the nationalized banks have the highest share in ATMs followed by state bank group. Nationalized banks are on first position in the share of ATMs installed in year 2009 and 2011 are 36.51 and 33.33 percent respectively and in the year 2010 State Bank Group have installed highest ATMs in the country. Foreign sector banks are on the last position in the percentage share of new installed ATMs in the year 2009, 2010 and 2011 are 2.41, 1.71 and 1.83 percent respectively. 2. Review of Literature A number of studies specially related to ATM services are reviewed in this section. Sundaram and J. Premalatha (2012) studied the overall satisfaction level of the customers of the various banks in Vellore district, and concluded that customers felt that bankers must improve the safety, provide accurate, timely information and make the use of ATM services easyin order to retain the customers. They concluded that the majority of the customers are highly satisfied in using the ATM services of their banks. Singh and Saxena (2011) conducted a study on customer satisfaction regarding the use of ATMs and revealed that the ICICI Bank, being the largest private sector bank, must make its customers satisfied to sustain in this world of competition. They considered that the management of Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

ICICI Bank should seriously consider the recommendations made by their customers regarding ATMs and take all necessary steps to follow the same. Khan (2010) concluded that the key dimensions of automated banking service quality include reliability, ease of use, privacy, convenience and responsiveness. He concludes that ATM facility resulted in speed of transactions and saved time for customers. Singh and Komal (2009) conducted a comparative study among banks and concluded that the satisfaction level of the customer was highest in SBI Bank followed by ICICI Bank and HDFC Bank. Kamala (2008) has made a detailed survey regarding the customer satisfaction towards ATM services in Tirunelveli city of Taminadu. She observed that the respondents were conscious about more innovative techniques in ATM services. Uppal R.K. (2008) concluded that among all e-channels, ATM is the most economic and effective while mobile banking does not hold a strong position in public. The study also suggested some strategies to improve ATMs and m-banking services. Kaul (2007) in his article explained the importance and benefits of ATM, the players in the Indian market and presented various information concerning the growth of ATM. Al-Hawari et al. (2006) compiled a list of five major items about ATM service quality that includes convenient and secured locations, functions of ATM, adequate number of machines and user-friendliness of the systems and procedures. Mcandrew (2003) talked about the various utilities of ATMs, which has given worldwide popularity. The utilities include withdrawal of cash as per convenience of the customers than during the banking hours at branches. Besides providing off time and off shore services, there is reduction of cost of servicing. Shastri (2001) analyzed the effects and challenges of new technology on banks. He found that technology has brought a sea change in the functioning of banks and use of ATMs has increased with the passage of time. 3. Research Methodology Looking at the changing environment, awareness, technological upgradation and innovation in banking sector, there is a need to study the behaviour of customers and their perception regarding technological issues in banking sector. The present paper is a step in this direction. This paper has tried to study the perception of ATM customers across various demographic factors. ? Population and Sample: The population defined for this research paper was limited to the udy Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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Sunita Bishnoi

ATM users of various banks located in Delhi, Gurgaon and Faridabad. In this study random sampling technique has been used and in total 220 respondents were surveyed to find out the objectives of the study during June to August 2012. ? Database and procedure of analysis: Both primary and secondary data collection methods were used for the purpose of the study. A structured questionnaire was used to collect primary data to achieve the objectives of the study. The respondents were asked to indicate their perception regarding various aspects of the ATM services, problems while using ATM and various modes of transaction through ATM on a five point Likert scale (1 for Strongly disagree and 5 for strongly agree). ? Statistical tools and techniques: The collected data further has been analyzed by using descriptive statistics such as frequency distribution, percentages, mean scores and standard deviation. To find out the variation of opinion among various categories t test and F test have been applied. These statistical techniques are run through SPSS. 4. Objectives of the Study ? The aim of the paper is to provide a groundwork investigation of the various ATM transactions, reasons to use ATM cards and various problems while using ATM card services. ? To analyze the relationship between various demographic variables and ATM services provided by various banks. Hypotheses ? There is no association between various demographic variables and the various transactions/ services offered by ATM/ Debit cards. ? There is no association between various demographic variables and the reasons to use ATM/ Debit cards. ? And There is no association between various demographic variables and the various problems faced by users while using ATM/ Debit card.

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

5. Results and Discussions Table 2: Distribution of Respondents on the basis of demographic factors Demographic Variables Gender

Area of Residence

Categories

No. of Respondents

Male

130 (59.09%)

Female

90 (40.91%)

Faridabad

62 (28.18%)

Delhi

87 (39.54%)

Gurgaon

71 (32.28%)

Upto 300000

68 (30.90%)

300001 - 600000 Income Classification

Age (in years)

Occupational Category

Education Qualification

Sector of Bank

87 (39.54%)

Above 600001- 1000000

51 (23.19%)

Above 1000000

14 (6.37%)

18-30

89 (40.45%)

31-45

94 (42.73%)

Above 45

37 (16.82%)

Business

58 (26.36%)

Public Sector Employees

38 (17.27%)

Private Sector Employees

82 (37.28%)

Professionals

35 (15.91%)

Students

07 (3.18%)

Up to Graduation

103 (46.81%)

Upto post Graduate

117 (53.19%)

Public Sector

103 (46.81%)

Private Sector

117 (53.19%)

Source: Primary Data 5.1 Customers' Perception Regarding the Reason to use ATM/ Debit Card Services In table 3 the analysis regarding reasons for use of ATM/Debit card has shown that customers have no need to carry cash as almost 80 percent respondents gave response in favor to this issue. Moreover above 75 percent of the respondents have favored the issues that 'there is no extra cost from bank side' and it also 'reduces risk of cash loss'. Out of the total respondents 40.9 percent of the respondents perceived 'any time and anywhere cash withdrawal' as the most important reason for ATM /debit card. In total, above 70 percent of the respondents perceived that all the listed reasons in table are very important according to them. Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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Table 3: Perception of Respondents towards the Use of ATM Services Sr. No.

ATM Services

1

89 (40.5) 52 2 Convenient while traveling (23.6) 105 3 Reduces cash requirement (47.7) Any time and anywhere cash 90 4 withdrawal (40.9) 64 5 Immediate access of cash (29.1) 92 6 Reduces risk of cash loss (41.8) Provides Statement of 71 7 account at the same time (32.3) 69 8 Safe transaction (31.4) 84 9 User friendly ATMs (38.2) 64 10 Connectivity to other banks ATM (29.1) 1

No extra cost from bank side

2

3

4

5

91 (41.4) 110 (50.0) 71 (32.3) 85 (38.6) 108 (49.1) 75 (34.1) 101 (45.9) 106 (48.2) 93 (42.3) 94 (42.7)

26 (11.8) 46 (20.9) 33 (15.0) 35 (15.9) 39 (17.7) 41 (18.6) 34 (15.5) 31 (14.1) 35 (15.9) 47 (21.4)

10 (4.5) 4 (1.8) 9 (4.1) 6 (2.7) 4 (1.8) 7 (3.2) 9 (4.1) 10 (4.5) 6 (2.7) 10 (4.5)

4 (1.8) 8 (3.7) 2 (0.9) 4 (1.9) 5 (2.3) 5 (2.3) 5 (2.2) 4 (1.8) 2 (.09) 5 (2.3)

Std. Mean Dev. 1.83

.877

2.09

.875

1.75

.860

1.83

.860

1.96

.819

1.87

.922

1.95

.879

1.94

.852

1.83

.794

2.06

.904

Note : Figures in parentheses are percentages (Note: 1 very important, 2 Important, 3 neutral, 4 Unimportant, 5 very unimportant)

Table 3 also reflects the overall mean score and respective ranks would be able to present a clear portrait of the Reasons for using ATM/Debit card. It is also apparent from the mean values from the table that the reason 'Reduces cash requirement' is found very important for the respondents, followed by 'no extra cost from bank side', 'user friendly' and 'any time and anywhere withdrawal'. The third highest rank is captured by 'reduces risk of cash loss' as the issue has scored mean value equal to 1.87. 'Convenient while traveling' and 'Immediate access of cash' were the last rank holders in the table as reflected by the mean values i.e. above 2, hence it is observed that these issue were also taken in consideration while purchase of ATM/Debit cards. The perception of the bank customers, who are using ATM/Debit cards is associated with their demographic profile or not, also needs to be examined. This research paper has made an attempt to investigate the association between the demographic variables and their perception on various factors with the help of t- test and one-way analysis of variance (Table 4). Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

Table 4 : Results of one-way analysis of Variance regarding reasons to use Services of ATM Demographic variables

F Statistics 56

7

8

3

4

-2.096*

.798

-.214

-1.710

-.316

1.272

-.357

-.319

(.037)

(.426)

(.830)

(.089)

(.752)

(.205)

(.721)

(.750)

16.991* .456

.346

6.27* 9.504

1.032

8.279**

2.763

5.595*

9.97**

* (.000) (.500)

(.557)

(.013) (.002)

(.311)

(.004)

(.098)

(.019)

(.002)

.823 (.411)

.858

-1.448

-1.29

-.707

-.415

-.589

-1.326

.585

-1.142

(.392)

(.149)

(.198) (.481)

(.678)

(.556)

(.186)

(.559)

(.255)

1.327

1.027

1.463

.733

.579

1

2

9

10

t- value and Significance Gender

-2.846** -2.31* (.005)

Education

Sector of Bank

(.022)

F value and Significance Age

.497

4.338*

(.338)

(.609)

(.014)

(.520) (.267)

(.360)

(.234)

(.482)

(.562)

(.944)

Annual

1.404

1.008

.892

1.187 1.092

2.230

.898

2.062

3.140*

.844

income

(.243)

(.390)

(.446)

(.316) (.353)

(.086)

(.443)

(.106)

(.026)

(.471)

Occupation

2.555* .492

1.535

1.386

.586

1.216

.208

(.040)

(.742)

(.193)

(.865) (.418)

(.240)

(.673)

(.305)

(.934)

1.348

3.157*

4.413*

1.141

1.493

.167

1.632

.273

Residence

(.262)

(.045)

(.013)

(.321) (.583)

(.227)

(.846)

(.198)

(.761)

(.668)

Association

1.437 (.237)

1.240

2.687*

2.158 1.893

1.041

3.146*

2.943*

2.509

.858

(.869)

(.047)

(.094) (.132)

(.375)

(.026)

(.034)

(.060)

(.464)

Area of

with bank

1.091

.656

.319

.982

.541

.058

.795 (.530) .404

* Significant at 0.05 percent Level ** Significant at 0.01 percent Level

Regarding the perception on issues namely 'no extra cost from bank side', 'convenient while traveling' and 'reduces cash requirement' are significantly associating with gender since the t- value is significant at 1 percent and 5 percent respectively. Male and female respondents perceived remaining all other issues equally. The t statistics between education and the issues 'no extra cost from bank side', 'Provides statement of account at the same time' and 'connectivity to other banks ATM' are significantly associated at 1 percent level of significance. 'Any time and anywhere withdrawal' and 'user friendly ATMs' also have significant association with education as highlighted by their t- values which is significant at 5 percent level of significance. The perception of respondents across public and private sector respondents do not differ significantly as reflected by their t- values and their respective significance values, hence it can be concluded that respondents have similar perception towards various reasons of use of ATM services. On the other hand, age is only associated with the issue that 'it reduces cash requirement' as reflected by its F value and its significance. Hence, it is concluded that there exist a Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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Sunita Bishnoi

significant difference of opinion regarding reasons to use ATM services provided by various banks operating in Delhi, Faridabad and Gurgaon. There is an absence of association between annual income and reasons to use ATM services as the F values are not found significant except only one issue namely 'user friendly ATMs'. The analysis further reveals that occupation is significantly associated with the issue that there is 'no extra cost from bank side'. The area of residence has significant bearing among the issues 'convenient while traveling ' and 'reduces cash requirement'. 5.2 Perception of Respondents about Various Services of ATM Table 5: Perception of Respondents about Services of ATM/Debit Cards Sr. No.

Services from ATM Card

1

Cash Withdrawal

2

Payment of utility bills

3

Transfer funds between

4

accounts

Recharge prepaid mobile

5

card’ Stock market /mutual fund transactions

6

Donations/Charity

7

On line Shopping

8

Fueling up vehicle

1 80 (36.4) 28 (12.7) 25 (11.4) 27 (12.3) 8 (3.6) 9 (4.1) 30 (13.6) 41 (18.6)

2 76 (34.5) 70 (31.0) 71 (32.3) 44 (20.0) 56 (25.5) 30 (13.6) 59 (26.8) 71 (32.3)

3

4

5

37 (16.8) 65 (29.5) 59 (26.8) 59 (26.8) 33 (15.0) 61 (27.7) 57 (25.9) 52 (23.6)

14 (8.0) 15 (6.8) 31 (14.1) 36 (16.4) 45 (20.5) 37 (16.8) 30 (13.6) 19 (8.6)

13 (5.9) 42 (19.11) 34 (15.4) 54 (24.5) 78 (35.4) 83 (37.8) 44 (20.1) 37 (16.9)

Mean

S.D

2.08

1.117

2.86

1.275

2.88

1.227

3.19

1.337

3.57

1.298

3.69

1.219

2.98

1.318

2.71

1.315

Note : Figures in parentheses are percentages (Note: 1 very often, 2 often, 3 sometimes, 4 rarely, 5 never)

Further in table 5 frequency distribution and the overall mean and S.D. values of various services from ATM/ Debit cards have calculated. The table reflected that withdrawal of cash is frequently used services from ATM card followed by Fueling up vehicle, Payment of utility bills and Transfer funds between accounts. The respondents rarely used ATM/debit cards for services such as Donations/Charity and stock market/mutual fund transactions. To investigate the association between the demographic variables and their perception on various specialised services of ATM used by customers with the help of t test and one-way analysis of variance. The results are presented in table 6. The perception of respondents on issues namely 'pay prepaid mobile cards', are significantly associated with gender since the t value is significant at 5 percent Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

level of significance. Remaining all other issues mentioned in the study were perceived equally by male and female respondents. The level of education has a significant bearing on the issues namely 'Donation and Charity' at 5 percent level and 'shopping at merchant establishment' and 'fuelling up vehicle' at 1 percent level of significance as reflected by their t values and their respective significance. On the other hand, age is not associated with any of the issues as reflected by its F value and their significance level. Hence it is concluded that there exists no significant difference in the opinion of the respondents regarding specialized services of ATM provided by various banks operating in Delhi, Faridabad and Gurgaon. Table 6 : Results of one-way analysis of Variance regarding Specialized Services of ATM Demographic variables

Specialized Services of ATM 1

2

3

4

5

6

7

8

-.495 (.621)

.424 (.672)

-0.14 (.989)

4.722 * (.031)

15.799* * (.000)

16.433** (.000)

.840 (.402)

.557 (.578)

.888 (.376)

1.643 (.196)

1.451 (.237)

3.982** (.009)

3.115* (.027)

2.678 *(.033)

2.367 (.054)

.762 (.468)

1.436 (.240)

3.089* (.048)

2.323 (.086)

4.409 (.005)

.837 (.475)

t-value and Significance Gender

-.951 (.343)

1.787 (.075)

1.620 (.107)

2.281* (.024)

Education

-3.024** (.003)

1.504 (.221)

1.528 (.218)

.900 (.344)

Sector of Bank)

1.161 (.247)

.653 (.514)

-.138 (.891)

-1.511 (.132)

1.376 (.173) 3.800 (.053) -.650 (.516)

F value and Significance Age

2.754 (.066)

1.064 (.347)

2.188 (.115)

2.491 (.085)

Annual income

8.147** (.000)

2.498 (.061)

1.471 (.223)

2.653* (.050)

Occupation

5.027** (.001)

1.535 (.193)

4.218** (.003)

3.241* (.013)

Area of Residence

.219 (.804)

3.874 *(.022)

2.392 (.094)

.083 (.920)

Association with bank

1.443 (.231)

1.975 (.119)

3.595* (.014)

2.190 (.090)

.373 (.689) 1.401 (.244)

.588 (.556) .129 (.943)

3.839** 3.475 (.005) **(.009) .802 (.450) 1.305 (.274)

* Significant at 0.05 percent level ** Significant at 0.01 percent level

The specialized services namely 'recharge prepaid mobile card', 'online shopping' and 'fuelling up vehicle' have shown significant association with annual income where as 'transfer funds between your own accounts', 'recharge prepaid mobile card', stock market and mutual funds transaction', 'donations Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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Sunita Bishnoi

and charity' and 'shopping' are significantly associated with occupational categories of respondents. 'Payment of utility bills' and 'fuelling up vehicle' are correlated with area of residence at 5 percent level of significance. The sector wise perception of respondents reflected that there is no significant difference in the opinion of responders regarding the various specialized services of ATM used by customers. 5.3 Perception of Customers Regarding Problems while using ATM/ Debit Cards This section of the paper helps us know the respondents opinion regarding various problems in ATM banking services. As explained the responses were obtained on the basis of 8 statements related to the problems faced, while using ATM services on a five-point scale ranging from 1 to 5 (where 1 stands for very often and 5 for never). Table 7 reveals that more than 60 percent of respondents perceive that they faced the listed problems to a little extent while using ATM services. As high as 26.8 percent of the respondents perceived that they often faced the problem 'machine out of cash' and 'wrong amount on the slip'. Out of total almost 8 to 20 percent of the respondents were of the opinion that all the listed statements were often creates problem for them, while using ATM services. However, the majority of respondents expressed their neutral perception, related to the listed statements. Table 7: Perception of Customers Regarding Problems while using ATM/ Debit Cards Sr. No.

1 2 3 4 5 6 7 8

Problems while using ATM/ 1 Debit Cards 4 Card Gets Blocked (1.8) 13 Machine Out of Cash (5.9) 6 No Printing of Statement (2.7) 8 Machine Out of Order (3.6) 3 Wrong Amount in The Slip (3.6) Poor Visibility of Statement 2 Slip (0.9) Balance Reduced Without 3 Cash Receipts (1.4) Difficulty in Retrieving 3 Cards (1.4)

2

3

4

5

Mean

S.D.

13 (5.9) 46 (20.9) 39 (17.7) 30 (13.6) 30 (13.6) 24 (10.9) 26 (11.8) 11 (5.0)

14 (6.4) 20 (9.1) 22 (10.0) 23 (10.5) 23 (10.5) 25 (11.4) 15 (6.8) 8 (3.6)

113 (51.4) 103 (46.8) 87 (39.5) 124 (56.4) 124 (56.5) 101 (45.9) 89 (40.5) 123 (55.9)

76 (34.5) 38 (17.3) 66 (30.1) 35 (15.9) 35 (15.9) 68 (30.9) 87 (39.5) 75 (34.1)

4.10

0.895

3.47

1.169

3.75

1.141

3.66

1.031

4.18

1.057

3.94

0.970

4.04

1.031

4.16

0.822

Note : Figures in the parentheses is percentage (Note: 1 very often, 2 often, 3 sometimes, 4 rarely, 5 never)

Hence, it can be concluded from the table that although more 50 percent of the total respondents have shown their disagreement to various listed statements related to problems of ATM services. So banking sector should work in the direction to reduce the percentages of the respondents who are Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

agreeing that they have problems while using electronic banking. The overall mean values (table 7) have reflected that perception of customers regarding problems in ATM services ranging between a little extent to somewhat extent. According to the respondents, problems like 'Machine Out of Cash', 'Machine Out of Order' and 'No Printing of Statement' and 'Poor Visibility of Statement Slip' were ranked higher as compared to others. To find out the difference of opinion among various respondents belonging to various demographic variables regarding the various problems while using the ATM services, t test and F test has been applied and the respective results are presented in table 8. The table clearly reflects that there is no significant difference of opinion between male and female and public and private sector respondents regarding various problems while using ATM services as their t values are not significant. The level of education has a significant bearing on 'machine out of cash' at 5 percent level of significance. Table 8: Results of one-way analysis of Variance regarding Problems while using Services of ATM Demographic variables

Problems while using Services of ATM 1

2

3

4

5

6

1.803 (.073)

-.108 (.914)

t-values and Significance - .241 .233 1.808 (.810) (.816) (.072)

.038

5.975*

2.140

2.440

3.399

.085

Sector of

(.845) .558

(0.15) .941

(.145) 1.749

(.120) 1.187

(.067) -.483

Bank)

(.578)

(.348)

(.082) (.237) (.629) F values and Significance

Age

2.059

3.820*

5.922**

1.740

3.366* 5.746**

(.130) 2.652* (.050) .395 (.812) .175

(.023) 4.049** (.008) .348 (.845) 4.112*

(.003) 5.812** (.001) 1.002 (.408) 3.015*

(.178) 1.266 (.287) 1.243 (.294) .544

(.037) 1.554 (.202) 1.730 (.144) 2.180

(.840) 2.042

(.018) 1.185

(.050) .986

(.581) 5.408**

(.109)

(.316)

(.400)

(.001)

Gender Education

Annual income Occupation Area of Residence Association with bank

-1.04 (.300)

7

8

-.858 (.392)

-1.575 (.117)

1.666

2.799

(.772) - .820

(.198) 1.025

(.096) .166

(.413)

(.307)

(.869)

.694

7.179**

(.004) 2.302 (.078) 1.588 (.178) 3.184 *

(.501) 1.926 (.126) 2.433 *(.049) .126

(.001) 1.328 (.266) 3.850 **(.005) 1.049

(.116) 2.471

(.043) .669

(.882) .453

(.352) .918

(.063)

(.572)

(.716)

(.433)

* Significant at 0.05 percent level ** Significant at 0.01 percent level Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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The respondents' age is significantly associated at 1 percent level of significance with the issues namely 'machine out of cash' and 'wrong amount on the slip'. Where as the issues 'no printing of statement'; 'poor visibility of the statement' and 'difficulty in retrieving cards' are significantly associated with age at 5 percent level of significance. Further the analysis in the table reflects that annual income has significant association with the issues that cards get blocked at 5 percent level of significance and machine out of cash and no printing of statement at 1 percent level of significance. Occupation has significant impact on the issues i.e. 'balance reduced without cash receipt' and 'difficulty in retrieving cards'. The place of residence of respondents has significant association at 5 percent level with the issues namely, 'machine out of cash', 'no printing of statement' and 'poor visibility of the statement slip'. Further the association with bank has shown significant association with the issue 'machine out of order'. 6. Findings of the Study 6.1 Reasons to buy ATM/Debit Cards The study presents a clear portrait of the Reasons for using ATM/Debit card. The reasons namely 'reduces cash requirement' is found very important followed by 'No extra cost from bank side', 'user friendly ATMs' and 'any time and anywhere withdrawal'. The issues namely 'no extra cost from bank side', 'convenient while traveling' and 'reduces cash requirement' were significantly associated with gender. The issues namely 'no extra cost from bank side', 'provides statement of account at the same time', 'connectivity to other banks ATMs', 'any time and anywhere withdrawal' and 'user friendly ATMs' have significant association with educational level of respondents. Further the study concludes that perception of respondents across public and private sector does not differ significantly as various reasons of use of ATM services are concerned. On the other hand age was only associated with the issue that 'it reduces cash requirement'. There was an absence of association between annual income and reasons to use ATM services. Further the study revealed that occupation is significantly associated with the issue that there is 'no extra cost from bank side'. The area of residence has significant bearing on the issues 'convenient while traveling' and 'reduces cash requirement'. 6.2 Various Services Used by Customers The analysis related to various services from ATM/ Debit cards revealed that 'cash withdrawal', 'fueling up vehicle' and 'payment of utility bills' were the most preferred ATM cards services used by the respondent. The issue 'pay prepaid mobile cards', are significantly associated with gender. The level of education has a significant bearing on the issues namely 'donation and charity', 'shopping at merchant establishment' and 'fuelling up vehicle'. The specialized services such as 'recharge prepaid mobile card', Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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An Empirical Study of Customers' Perception Regarding Automated Teller Machine in Delhi and NCR

'online shopping' and 'fuelling up vehicle' have shown significant association with annual income where as 'transfer funds between your own accounts', 'recharge prepaid mobile card', stock market and mutual funds transaction', 'donations and charity' and 'online shopping' are significantly associated with occupational categories of the respondents. 'Payment of utility bills' and 'fuelling up vehicle' is correlated with area of residence. The sector wise perception of respondents reflected no significant difference of opinion regarding various specialized services of ATM used by customers. 6.3 Problems While Using ATM/ Debit Cards The results of the study regarding problems while using ATM services found that 'machine out of cash', 'machine out of order', 'no printing of statement' and 'poor visibility of statement slip' were the important issues. It was clearly reflected from the study that there was no significant difference of opinion between male and female and public and private sector Bank ATM users regarding various problems while using ATM services. The level of education has a significant bearing on the issue 'machine out of cash'. The respondents' age was significantly associated with the issues 'machine out of cash', 'wrong amount on the slip', 'no printing of statement', 'poor visibility of the statement' and 'difficulty in retrieving cards'. Further the study found that annual income has significant association with the issues 'cards get blocked', 'machine out of cash' and 'no printing of statement'. Occupation of the respondents has significant impact on the issues namely 'balance reduced without cash receipt' and 'difficulty in retrieving cards'. The place of residence of respondents has significant association with the issues namely 'machine out of cash', 'no printing of statement' and 'poor visibility of the statement slip'. Further the association with bank has shown significant association with the issue 'machine out of order'. 7. Conclusion and Implications of the Study The present research concludes that ATM is a very convenient and has any time anywhere usage. As the services of ATM and number of ATM is increasing day-by-day, and simultaneously, the number of ATM users is also increasing, so it is important on the part of bank, to have an idea about what the ATM users are thinking about its various features, what are their problem areas, what are their recommendations, how do they compare the ATM service of this bank with that of any other bank etc. Thus the findings of the study may be very useful for bank officials and it may also help the ATM section of the banks to develop their future plans and strategies. References 1.

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Literature,” available at : http://www.rnejournal.com/articles 10. RBI Bulletin, 2009,2010,2011, http://www.rbi.org, citied on 14.09.12. 11. Sai Tapla V. V. (March 2006), “Role of IT in Banking Sector”, The Professional Banker, March 2006 12. Shastri R. V. (March 2001), “Technology for Banks in India Challenges”, IBA Bulletin, Vol. XXIII, No. 3 pp 23-45. 13. Singh Pahwa and Saxena (2011), “Analytical Study of Customer Satisfaction at ICICI Bank with special reference to ATMs”, IPEDR vol.12, IACSIT Press, Singapore 14. Sultan Singh, Ms. Komal (August 2009), Impact Of Atm On Customer Satisfaction(A Comparative Study of SBI, ICICI & HDFC bank), Business Intelligence Journal -Vol. 2 No. 2 15. Sundaram N. and Premalatha J. Ramola (Feb 2012), “Analysis of Customer Satisfaction with reference to ATM Services in Vellore District, Tamil Nadu”, IJEMR, Vol 2. Issue 2 - Online - ISSN 2249 2585 - Print - ISSN 2249 - 8672 16. Uppal R.K. (Feb 2008), “Customer Perception of E- Banking Services of Indian Banks: Some Survey Evidence” The ICFAI Journal of Bank Management, Vol. VII, No. 1 pp. 63-78. Integral Review- A Journal of Management, Vol. 6 No. 1, June 2013

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