ASSESSMENT OF EFFECTIVE ATM SERVICE ON CUSTOMERS

SATISFACTION IN CASE OF AWASH BANK LEGETAFO BRANCH

RIFT VALLEY
UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE
Research Proposal submitted to the Department of Accounting and
Finance in Partial Fulfillment of the Requirement for the Bachelor
of Art (BA) Degree in Accounting and Finance.
Prepared By:
Name ID NO
1. Zerihun Dembel 0075/18

2. Meseret Sertse 0049/18

3. Mery Devid 0046/18

4. Hikma Akmel 0031/18

5. Abraham Girma 0003/18

Advisor: Gosa.M

July, 2021
 Legetafo,Ethiopia

ACKNOWLEDGMENT

Above all, we would like to expressed our special thanks to almighty of God/Allah, who gave us
peace and keep us from all endangers, next, we would like to expressed our deepest and heart
full appreciation to our advisor Gosa.M his precious time devoted in reading and correcting our
senior essay and for guiding us in writing this essay.

In addition to our advisor we would like to say thanks to Awash bank branch manager and his
staff members to give the necessary information for us. And would like to offered our special
thanks to Awash Bank, Legetafo branch customers respondents who have devoted their time to
answer our interview and who gave us special support for the success of this study. Last but not
least, we would like to express our deepest and heart full gratitude to our family and our friends
for their moral and financial support from the beginning till now.
 TABLE OF CONTENTS
Contents Page No

Acknowledgment .........................................................................................................................

Table of Contents ........................................................................................................................

List of Table ................................................................................................................................

List of Acronyms/ Abbreviation .................................................................................................

Abstract ........................................................................................................................................

Chapter One

INTRODUCTION ......................................................................................................................

1.1 Background of the Study.................................................................................................

1.2 Background of the Organization .......................................................................................

1.3 Statement of the Problem ................................................................................................

1.4 Research Question ...........................................................................................................

1.5 Objective of the Study .....................................................................................................

1.5.1. General Objective ..................................................................................................

1.5.2. Specific Objective .................................................................................................

1.6 Significance of the Study ....................................................................................................

1.7 Scope of the Study ..............................................................................................................

1.8 Limitation of the Study .......................................................................................................

1.9 Organizational of the Paper ...............................................................................................

Chapter Two

RELATED LITERATURE REVIEW

Introduction .................................................................................................................................

2.1 Concept, Definition, Description ....................................................................................

 2.1.1. Definition of ATM ..................................................................................................

2.1.2 Profile of ATM .........................................................................................................

2.2 Benefits Customers Derive from ATM .............................................................................

2.3 Challenges of ATM ........................................................................................................

2.4 ATM Service and Customer Satisfaction ...................................................................

Chapter Three

RESEARCH DESIGN AND METHODOLOGY

3.1 Study Design .....................................................................................................................

3.2 Data Type and Source ........................................................................................................

3.3 Target Population ..........................................................................................................

3.4 Sample Size and Selection Method .....................................................................................

3.5 Methods of Data Collection and Analysis ..........................................................................

Chapter Four

Data Presentation, Analysis and Interpretation

4.1 Demographic Information of the Respondents ............................................................

4.2 Convenience of ATM service on customers satisfaction ................................

4.3 Influence and Benefits of ATM service on customers satisfaction .................................

4.4 Information related to challenges facing Awash Bank customers in the usage of ATM
service .............................................................................................................................................

4.5 The Overall satisfaction in ATM service ...............................................................................

Chapter Five

Summary of Finding, Conclusion and Recommendations

5.1 Introduction ...................................................................................................................

5.2 Summary ...........................................................................................................................

5.3 Conclusion ........................................................................................................................

 5.4 Recommendations ..........................................................................................................

Reference ...............................................................................................................................

Appendix ................................................................................................................................
 List of Table
Table 1. Demographic profile of ATM service customers.

Table 2. Responses about ATM machine menu.

Table 3. Responses about ATM service security and privacy measure.

Table 4. Responses to measure the benefits of ATM service in customers satisfaction.

Table 5. Responses regarding to level of system related to ATM service.

Table 6. Responses for the overall satisfaction in ATM service.

 List of Acronyms/ Abbreviation
ATM Automated Teller Machine

SERVQUAL Service Quality

SERVPERE Service Performance

PIN Personal Identification Number

ABSTRACT
This study aims to assessed the effectiveness of ATM service on customers satisfaction with
reference to Awash Bank, Legetafo branch. It deals with four specific objectives which includes,
examine the convenience of ATM services on customers satisfaction of Awash Bank in Legetafo
branch, identify the influences and benefits of ATM service on customers satisfaction, identify
the challenges facing Awash Bank customers in using ATM service and examine the level of
Awash Bank ATM service customer satisfaction in Legetafo branch. The primary data was
collected using structured interview. Data collects were analyzed and processed through
descriptive analyses, organize and present using frequency, percentage, narration and
interpretation. The results show generally that; the ATM service menu are convenient for users.
Additionally the study was been found that ATM service security and privacy has great influence
on customers satisfaction. Thirdly the result found that challenges facing Awash Bank, Legetafo
branch customers in using ATM service include system failure. Fourthly the result found that the
overall customers satisfaction in ATM service of in Awash Bank,Legetafo branch. The study
show the effectiveness of ATM service on customers satisfaction using a case of Awash Bank,
Legetafo branch.

CHAPTER ONE

1. INTRODUCTION
 1.1 BACKGROUND OF THE STUDY

The service delivery process usually involves the customer in the production and which have
relatively direct contact so service providers have to be sure that they are providing the right
service at the right time for the right people with a right delivery system, most banks including
Awash Bank have installed Automated Teller Machine (ATM) and those have installed are in
advance stage of incorporating the same, this can be attributed to their conveyance, reliability
and in line with today’s business (Habte, 2019)

Automated teller machine (ATM) is a computerized machine that permits bank customers to gain
access to their account with magnetically encoded plastic card and abode number it enables the
customers to perform several banking operation without the help of the teller (Dr.Nyi, 2019)
Technology is growing by rapid face in to different direction thus the choice of automated teller
machine is dependable to growing with that over world is entertaining through times. Initially
banks that pounced with automated jelled machine (ATM) service were offering more of cash
dispensing service to the visa family making these ATM visa enabled and giving raise to the
debit card that operates globally this means that you access your account in any location in the
world as long as the point of sale is visa enabled (Sunita, 2013)

Customers have also complained of high transaction charges break down of ATMS and denial of
services un reliability ATM , complexity of technology as most ATM have reduce on the rate of
staff , cards are being frozen and frauds which have caused insecurity among customers , ATMS
have reduced on the rate of staff of banks and customers contact leaving customers who would
have wanted to inquire about something more dissatisfied, customers are flexible float whereby
once aback takes them to ascertain level they would be more classified than they were before
changing the system(Dr.Manisha & Ass.Prf Rajiv, 2012)

1.2 BACKGROUND OF THE ORGANIZATION

Awash Bank was established by 486 founding shareholders with a paid-up capital of Birr 24.2
million and started banking operations on February 13,1995. As of end of June 2020 the number
of shareholders and its paid-up capital increased to over 4369 and Birr 5.87 billion, respectively.
Likewise, as of end June 2020, our total assets reached Birr 95.6 billion with over 535 branches
found across the country, Awash Bank continues to be leading Private Commercial Bank in
Ethiopia. (http://www.Awash Bank.com)

When come to Awash Bank Legetafo branch was established on October 22,2007 and it has
15,176 account holders. Awash Bank Legetafo branch has 4800 active ATM users. Awash Bank
Legetafo branch ATM service provides only cash withdrawal.

1.3 STATEMENT OF PROBLEM

Whether governmental or nongovernmental organization, manufacturing or service giving

industry, to survival and success, it relies on its ability to satisfy its customers. Financial
institution like Awash Bank requires to devote much of their time on proper designing and
delivery system to satisfy the potential customers, it has continued to install automated teller
machine (ATM) across the country so that their customers can access the service in more reliable
and efficient way, in today’s techno-based banking the ATM has become indispensable.
However not sufficient study has been done in Ethiopia with regard to ATM service and
customer satisfaction issues because of ATMS service in Ethiopia is at the introduction
stage..Therefore customer satisfaction is an important factor for capturing the market and also for
retaining the existing one, with this as the backdrop the study was analyzes the level of
satisfaction of the ATM customers of the Awash Bank Legetafo branch.

1.4 RESEARCH QUESTIONS

At the end of this study the researchers will address the following basic research questions:

 What is the convenience of ATM service on Awash Bank customers?

 What are the influences and benefits of ATM service on customers satisfaction?
 What are the challenge facing customers in usage of ATM service?
 What is the level of Awash Bank ATM service customer satisfaction in Legetafo branch?
 1.5 OBJECTIVE OF THE STUDY

1.5.1 GENERAL OBJECTIVE

The general objectives of the study will be determining the effective assessment of the level of
customer satisfaction due to the ATM service in case of Awash Bank Legetafo branch.

1.5.2 SPECIFIC OBJECTIVES

Specific objectives of the study will be;

1. To Examine the convenience of ATM service on customer satisfaction in Awash Bank in

Legetafo branch.

2. To Identity the influences and benefits of ATM service on customer satisfaction in

Awash Bank in Legetafo branch.

3. To Identify challenges facing Awash Bank, Legetafo branch customers in using ATM
service.

4. Examine the level of Awash Bank ATM service customer satisfaction in Legetafo branch.

1.6 SIGNIFICANCE OF THE STUDY

The study may help the management and other stakeholders of Awash Bank to understand how
best they will customize ATM services to meet needs of customers. The findings of the study
may help the management of Awash Bank to streamline efforts aimed at ensuring maximum
utilization of newly adopted technologies so as to achieve high level of operational Efficiency ,
the findings may serve as precursor for the financial institutions that have not yet automated
their banking activities to consider doing so . The study may also help other researcher to acquire
skills of carrying out on this title.

1.7 SCOPE OF THE STUDY

The study will carry out in Awash Bank Legetafo branch. This branch will choose because of its
convenience to researchers.

1.8 LIMITATION OF THE STUDY

The major limitation of the study is that branch.

 ATM users are not available in ATM service area.

 Customers are not comfortable being asked to fill the interview because of threat of
covid 19 and of national current condition.
 Lack of capacity of the researchers to conduct the study in different banks. and
 Lack of time.

1.7 ORGANIZATIONAL OF THE STUDY

This research paper consists of five chapters. The first chapter consists of Background of the
study, Background of the organization, Statement of the problem, Research question, Objective
of the study, Significance of the study, Scope of the study, Limitation of the study,
Organizational of the paper. The second chapter contains Review of related literature. The third
chapter contains Methodology of the study. The fourth chapter with the data presentation,
analysis and interpretation of the research study. The fifth chapter has summary, conclusion and
forward relevant recommendations based on data collected and analyzed.

CHAPTER TWO

REVIEW OF RELATED LITRATURE

2. INTRODCTION

This section presents a review of a related literature on the research topic.

2.1 CONCEPT, DEFINITION AND DESCRIPTION

2.1.1 Definition of ATM

Automated teller machine (ATM) is a product of technological development developed to

enhance quick service delivery as well as diversified financial services such as payment for
utilities, cash deposits, with drawls, fund transfer, transaction and other financial enquires, all
financial institutions are using this method or system aggressively encouraging all their
customers to take advantage of these service on the grounds of ease process but un announced
generation to the bank. Automated teller machine is the first well known machines to provide
electronic access to customers with the advent of ATM banks are able to serve customers outside
the banking hall operations without the help of a teller. (Anwar, 2017)

2.1.2 Profile of ATM

ATM is an abbreviation of ‘’ Automated Teller Machine ‘’ it’s a anatine used by the banks all
over the world, this machine allow the account holders to have transactions with their own
account without allowing them to access the entire banks have an account by paying some
changes. Services offered by banks through ATM .The following services are provided by banks
through ATM

 Cash withdrawals and balance equity

 Cash / cheese deposits

 Bill payments
 Money transfer
 Mobile recharges

The concept of ATM has been aid and has been developing throughout the world; the ATM is an
innovative services delivery made that offers diversities financial services like cash withdrawal.
Funds transfer cash deposit, payment of wilily and credit eared bills, cheese book requests and
other financial enquires…Rose (1999) described ATM as follows an ATM combines a computer
terminals reword keeping system and cash vault in one unit, permitting customers to enter the
banks record keeping system with a plastic card containing personal identification number (PIN)
or by punching a specific Code in to the computer terminal linked to banks computerized
reword 24 hours a day. Accustoms can access on ATM machine by using an ATM card. An
ATM cord is a plastic cord that allows the bank account holder to do the something at on ATM
as he or she would do at bank (Baktiar & Kamrun, 2015).

2.2 Benefits customers derive from ATM

Before ATMs is placed in public place, it typically undergoes extensive testing with both test
money and the backend computer system that allows it to perform transactions.

Fast and time

ATMs save time since there is no need to come to bank and wait in a queue or fill in some
paper first every time one wants to transact .ATMS are faster than human tellers in processing
transactions due to the automation function(Eskedar, 2018)

Convenience
The introduction of ATMs had made it easier for customers to withdraw or deposit money at any
particular time location.( Gabriel, Eugene & Daniel, 2015) adds that customer needs for
convenience are increasingly catered for by the establishment of ATMs. They can be accessed
24 hours a day every day of the week. ATMs are also placed in places away from banking halls
and near to people work places and residences thus further increasing the convenience to
transact.

Acceptability

ATMs are another way banks are making their services acceptable to their customer (Khan,
2010). Customers can bank at their own schedule due to wide ATM network.
 2.3 Challenges of ATM

Technology in Africa in particular Ethiopia is new and many bank customers are not well
conversant with this technology. Adelewo and Mohammed, (2010) observes that the third world
nations are many years behind development . He notes that ATMs and credit cards were
introduced in the western world in 1970 but have just been introduced.

Although banks have tried to secure transactions made through ATMs. Kavita Hooda, (2016)
observes that one of the biggest concerns about ATM is security; He says that this threat is both
to the customer and the bank itself. Customer need to be sure that their passwords are secure so
that their information and translations are safes development of secure control is a big challenge
for the service provider.

2.4 Automated teller machines Service and customer satisfaction

The marketing literature clears that customer satisfaction is measured via service quality. Service
quality is measured by various measurement tools developed by various researchers and
marketing consultancy organizations, SERVQUCAL, SERVPERF, & etc. A number of studies
specifically address the role of satisfaction in service context. However, not sufficient study has
been done in Ethiopia with ATM service and customer satisfaction issues.

Tewodros & Debele,(2019) observes that ATMs have reduced variability of banking services in
that they have made the services standard and customer now spend little time to carry out their
Transactions , he also says that the Biggert baneful that ATMs have provided is that cash can be
withdrawn 24 hours a day. A number of scholars such as Dr.Abubakar and Lisisi Ma A Ruf who
have researched on this area of ATM contribution to customer satisfaction have realized that hot
all customers will gain the same satisfaction been use of deferent tests and preferences.

Odusina, ( 2014) observes that ATMs have improved speed. Accuracy efficiency and has
increased the capacity of banks of handing large volume of work in the study he says that even
though computers have enhanced efficiency and capacity of handing large volume of work, at
times this has been affected by the breakdown of the systems thus the activities come to an and
as customer postpones their business to the next day making matters of compaction worse.
Charles, (2003) notes that ATMs culled fact to provide a service of the card is fallacy been use
these machines are so sensitizer he further says that the customs will than move from one to a
customer being demoralized or dissatisfied.

Advantages of using ATM cards

An ATM card connects directly with your bank account to give you access to your account
through an automated teller machine. With the card you can make deposits or withdrawals.

 ATM provides 24 hours service ATM provides round the clock the customer can access
withdraw cash up to certain limit during any time of the day or night.
 ATM gives convenience to banks customers, now a day’s ATM are located at
convenience place such as air ports rail way stations etc. and not necessary at the banks
premises.
 ATMs provide services without any error.
The customers can obtain exact amount since there is no human errors far as ATM are
concerned.

ATM reduces the work load of banks staff. ATM reduces the work pressure of banks
staff and avoids in the bank premises’.

 ATM are very beneficial for travelers.

ATM are of great help to travelers they need not carry large amount of money with them.
They can withdraw cash from any city or state across the country and even from outside
the country with the help of an ATM source. (www.Google .com)

Disadvantages of using ATM cards

 Spending discipline: with an ATM card you have access to the funds in your accounts
from many convenient locations without an ATM card you have limitations of planning
your expenditures by withdrawing money from your savings.
 Security and safety
 Using an ATM could place you at risk for robbery after withdrawing money from the
machine.
 Pin relocation

To use your ATM securely you need to memorize pin . If you forget your pin you will never not
be able to use an ATM to make withdrawals or deposits in to your account.

 Fees can break you

Many banks have a fee structure in place for customers who use the convenience of
ATM.

 Fraud

Criminals can fit skimming devices and small cameras to ATMs these machines record
account details and the personnel identification numbers which the crook uses to
withdraw money from those accounts.(www.Google.com)

CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

Due to the researchers study will be focus on ATM SERVICE AND LEVEL OF CUSTOMER
SATISFACTION. The most appropriate method for this study will use descriptive method in
case of the environment will be used as a field of study.

3.1 STUDY DESIGEN

The purpose of the study will describe the existing ATM services and customer satisfaction
because of that the study may use descriptive approach.

3.2 DATA TYPE AND SOURCE

In order to increase the effectiveness of the study the researchers will use both primary and
secondary type of data source. Primary source of data will be achieved through interview and
secondary data will be collected and obtained from different written materials like; magazines,
newspaper, fligheers, annual report of the organization.

In case of data type the researchers will use qualitative type data. Because the study focus on
specific place on ATM service and customer satisfaction in Awash Bank Legetafo branch . So
the qualitative type of data is the most appropriate for the study.

3.3 TARGET POPULATION

The target population of the study is customer of Awash Bank Legetafo branch who is ATM
card holders.

3.4 SAMPLE SIZE AND SELECTION METHOD

The data of sample size will collected from current customers of the bank who are ATM card
holder. The current ATM holder of the bank is 4,800 customers. The researchers will select the
study population by using non probability techniques depending on the range of elements of
target population. Because this represent all the study population for area is difficult. Therefore
the researchers will use judgmental sampling Techniques. The reason why non probability
sampling technique will select is that it is less complicated to collect the data, is less expensive,
less time since concerned bodies. The total target population for this study is 4,800 from this
population 60 customers of the bank will be select judgmentally for this study.

3.5 METHODS OF DATA COLLECTION AND ANALYSIS

To conduct the study both primary data and secondary data collection method will use,
principally structured interview asked for respondents and secondary data will be collected
through the review of the documents of the Awsh Bank Legetafo Branch.

After the data has collected the data will be processed on the activity which in value, editing be
and classifying data to make it suitable for further analysis, the data collected will be present by
using table, percentage, number …etc.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter is concerned presentation, analysis and interpretation of the data gathered via
primary source interviews from the customers of Awash Bank. All respondents were answered
the structured interview from 60 sample size. the responses are edited and classified under their
respective interview question so as to prepare it for further analyses and presentation.
4.1 Demographic Information of the Respondents

Table 1. Demographic Profile of ATM Service Customers

Demographic
Profile Alternative Frequency Percentage (%)
Male 43 72%
Gender Female 17 28%
Total 60 100
18-25 20 33.33%
26-30 23 38.33%
31-40 14 23.33%
41-50 2 3.33%
Age Above 51 1 1.66%
Total 60 100
Elementary Complete 8 13%
10/12 Grade Complete 26 43%
Diploma Complete 7 12%
Educational Level Degree complete 16 27%
Masters and Above 3 5%
Total 60 100
Numbers of years as 1-3 years 36 60%
4-6 years 24 40%
a customer at Awash
Total 60 100
Bank
Number of years as a 1 year 24 40%
2 years 7 11.66%
customers of ATM
3 years 7 11.66%
service at Awash Above 4 years 22 36.66%
Bank legetafo Total 60 100

branch
Source: Research finding (2013 EC)

The result obtained from demographic profile of the respondents shows that 72% (43) are
male’s and the rest 28% (17) are female’s this shows that ATM cards is largely preferred by
males. So, Awash bank needs to do more promotion to attract female gender.

The result also shows more than 38.33% (23) of ATM users age ranges from age 26-30 years of
age, 33.3% (20) of users were between 18-28 years of age, 23.33% (14) of the respondents were
between 31-40 years of age, 3.33% (2) of the users age ranges from 41-50 years of age and
 1.66% (1) of the respondents were above 50 years of age. This shows that more than 70% of
ATM users age ranges from 18-30 age and indicates that the bank’s ATM service were more
preferred by younger social group. So, Awash bank needs to do more to create awareness among
the society at different age group.

Respondents educational levels shows: 13% are elementary complete, 43% have 10/12 grade
complete, 12% have diploma, 27% have degree and 5% have masters and above. Therefore we
can conclude that almost all of the respondents are educated and majority has an educational
level 10/12 grade completed and above.

The result shows that, 60% (38) of respondents has been the customer at Awash Bank for a
period between 1 to 3 years, 40% (24) has been customers for a period between 4 to 6 years. This
implies that majority of respondents has been customer for a period between 1 to 3 years.

The result also shows that, 40% (24) of respondents has been the customer of ATM service at
Awash Bank, Legetafo branch for a year, 11.66% (7) has been customers for two years, 11.66%
(7) has been customers for three years and 36.66% (22) has been customers from greater than 4
years.

4.2 Convenience of ATM Service on Customer Satisfaction

The researchers designing three question to measure the ATM machine/menu is easy to use or
not. The respondents answers are as follows:

Table 2.Responses About ATM Machine Menu

RATE
NO Statements Strongly Strongly
Agree Agree Neutral Disagree Disagree Total
F % F % F % F % F % F %
1 ATM machine
menu easy to 20 33% 28 47% _ _ 5 8% 7 12 60 100
navigate %
2 ATM machine
menu easy to 23 38% 30 50% _ _ 5 8% 2 3% 60 100
understand
3 ATM machine
menu easy to 18 30% 38 63% _ _ 3 5% 1 2% 60 100
make cash
withdrawal
Source: Research finding (2013 EC)

The above table shows that the result of customers response towards the question ATM service
menu is very easy to navigate, understand and easy to make withdrawal. From the result it can be
obtained that 33% (20) of customers of Awash Bank, Legetafo branch are Strongly agree, 47%
(28) respondents are Agree, 8% (5) respondents are Disagree and 12% (7) respondents are
strongly disagree. The above table implies that majorities 47% (28) of the respondents are Agree
by the ATM service menu is easy to navigate.

The result shows 38% (23) of customers are Strongly agree, 50% (30) respondents are Agree,
8% (5) respondents are Disagree and the rest 3% (2) users are strongly disagree. This implies
that, majority 50% (30) of the respondents are satisfied by the ARM Service Menu easy to
understand.

The result also shows 30% (18) of customers are Strongly agree,63% (38) respondents are
Agree, 5% (3) of users are Disagree and 2% (1) respondents are Strongly disagree to easy make
withdrawal. This implies that, majority 63% (38) of the respondents are Agree by the ATM
service menu is easy to make withdrawal money.
 4.3 Influence and Benefits of ATM Service on Customer Satisfaction

Table 3. Response About ATM Service Security and Privacy Measure

RATE

NO Statements Strongly Strongly

Agree Agree Neutral Disagree Disagree Total
F % F % F % F % F % F %
1 The securet
code/pin 28 46.6 22 36.6 _ _ 10 16.66 _ _ 60 100
number are 6% 6% %
only known by
the account
holder
2 Customer
money remains 16 27% 33 55% _ _ 9 15% 2 3% 60 100
in safe in case
one lose his/her
ATM card
3 Through ATM
service case of 15 25% 30 50% _ _ 12 20% 3 5% 60 100
cash fraud and
theft are
reduced
Source : Research finding (2013 EC)

The above table shows the result of customer’s responses towards the question the secret code or
pin numbers are only known by the account holder. from the result it can be obtained that
46.66% (28) of customers of Awash Bank Legetafo branch are strongly Agree, 36.66% (22)
respondents are agree, and 16.66% (10) respondents are Disagree. This implies that, majorities
 84 % (50) of the respondents are either strongly agree or agree that the secret code or pin
numbers are only known by the account holder.

The result shows towards to the question customers money remains safe in case of one losses
his/her ATM card. from the result it can be obtained that 27% (16) respondents are strongly
agree,55% (33) customers are agree,15% (9) respondents are Disagree and 3% (2) respondents
are strongly Disagree. The above result implies that, majority’s 55% (33) of the respondents are
agree that customers money remains in safe in case of losses his/her ATM card. However, the
customer did not take his/her pin code by others.

The result also shows 25(15) respondent are strongly agree, 50% (30) customers are agree, 20%
(12) users are Disagree and 5% (3) respondents are strongly Disagree. The result implies that,
majority is 50% (30) of the respondents are agree that cases of fraud and theft are reduced. This
implice ATM service is effective to satisfy customers.

Table 4. Responses to Measure the Benefits of ATM Service in Customers Satisfaction

RATE

NO Statements Strongly Strongly

Agree Agree Neutral Disagree Disagree Total
F % F % F % F % F % F %
1 The ATM
service is 34 57% 21 35% _ _ 5 8% _ _ 60 100
saving time
2 24 hours
access/can 30 50% 23 38% _ _ 7 12% _ _ 60 100
make service
any time
Source: research finding (2013 EC)

The above table shows the result of customers response toward to ATM service is saving time.
From the resalt it can be obtained that 575 (34) of customer are strongly agree, 35% (21)
respondents are agree and 8% (5) respondents are disagree this implies that, majorities 57% (34)
of the respondents are strongly agree that ATM service save the time. Furthermore this implies
that customers are satisfied by ATM service.

The result also shows that forward to the question ATM service have 24 hours access/can make
service any time. From the result it can be obtained that 50% (30) respondents are strongly agree,
38% (23) customers are agree and 12% (7) respondents are disagree, this implies that majority
50% (30) respondents are strongly agree, this implies that customers are satisfied by ATM
service.

4.4 Information Related to Challenges Facing Awash Bank Customers in The

Usage of ATM Service

Table 5. Response Regarding to Level of System Related to ATM Service

Level of System Frequency Percentage (%)

No System _ _
Moderate System 20 33%
Very high System 7 12%
Very weak System 6 10%
High System 27 45%
total 60 100
Source: research finding (2013 EC).

From the result researchers wanted to know that level of system in the ATM service provided by
Awash Bank, legetafo branch, Reponses were as follows, 33% (20) of respondents answered
Moderate system, 12% (7) respondents are answered Very High system, 10% (6) respondents are
answered Very Weak system and 45% (27) respondents are answered High system. The above
table implies majority of respondents said that the level of system in ATM service is high
system. It implies that customers are satisfied by the level of system.

4.5 The Overall Satisfaction in ATM Service

Table 6. Response for the Overall Satisfaction in ATM Service

Rate Frequency Percentage (%)

Very satisfied 24 40%
Satisfied 20 33%
Normal satisfied 3 15%
Dissatisfied 9 7%
Very dissatisfied 4 5%
total 60 100
Source: Research finding (2013 EC)

The above table shows the result of overall satisfaction in ATM service provided by Awash
Bank, legetafo branch. From the result it can be obtained that, 40% (24) of customers said that
they are Very satisfied, 33% (20) respondents side that they are in a little satisfied,15% (3)
respondents said that they are in Normal Satisfaction or average,7% (9) respondents said that
they dissatisfied and 5% (4) respondents are Very Dissatisfied according to their response. The
above table implies majority of respondents said that the overall ATM service provide by Awash
Bank, legetafo branch are satisfactory. Even though they are agreed that there are problem in
ATM service like in accessibility and delay of money in withdrawal time.

CHAPTER FIVE

SUMMARY OF FINDING, CONCLUSION AND

RECOMMENDATION

5.1 Introduction

Any business institution needs an element that helps it to be competitive in the market. the most
important things that helps a business organization to be competitive in the market is to
continuously improve its customer service. Likewise any banking institution aims to ensure
customer satisfaction and strength its relationship with customers. In order to achieve this, it is
necessary to use any opportunity that can help to improve the quality of customer service.
Modern technology places an important role in maintaining customer competitiveness in the
banking industry.
Recently, the use of modern technology in the country’s economy is growing. The banking
industry is one of the few sectors where modern technology is increasingly utilized to modernize
its operations. The banking sector is adopting new technologies to improve service quality,
expend its market base and maximize its economic efficiency. Awash Bank is one of the privet
banks engaged in privet banking services. The bank is contributed to the expansion of modern
banking services in to country. the bank is investing in modern technology to improve its
banking service to meet the demands of tis customers. For example, the use of ATM banking
service is an important component of this investment. It is a technology that allows the bank to
provide efficient, accessible, flexible and affordable banking service to its customers.

Awash Bank is developing strategies to expand their market and offer competitive service to stay
in the market. The use of advanced information technology is useful to provide competitive
service, to improve their customer service and their by strengthen their relationships. As the
industry continues to grow, the competition between banks is growing. The bank is required to
provide and quality service to customers to cope up with the growing competition. The growing
use of ATM banking service is a major change in this regard. At present, ATM card users can
only withdraw cash in legetafo branch.

5.2 SUMMARY

This study aimed at assessing the effectiveness of ATM service on customer’s satisfaction using
a case of Awash Bank, Legetafo branch. It explained all the four specific objectives which were
firstly, examine the convenience of ATM service on customers satisfaction, secondly identify the
influence and benefits of ATM service on customers satisfaction, thirdly identify challenges
facing Awash Bank, Legetafo branch customers in usage of ATM service and fourthly examine
the level of Awash Bank ATM service customer satisfaction in Legetafo branch.

These results showed generally that, the convenience or easiness of ATM machine menu; i.e. to
navigate, to understand, to make cash withdrawal has great efficiency on customers satisfaction.
Secondly the study found that security and privacy in ATM service has a great role on
customer’s satisfaction. Thirdly the result found that challenges facing in Awash Bank, Legetafo
branch customers in usage of ATM service include system failure. Fourthly the result shows the
overall satisfaction in ATM service.

5.3 CONCLUSION

One of the key elements to profit maximization is handling customers satisfaction. The major
intention of this study was to assess the effectiveness of ATM service on customers satisfaction
using a case of Awash Bank, Legetafo branch. It is clear from the finding that ATM service on
customers satisfaction is effective, however there are some challenges facing customers in the
usage of ATM service. The main challenge is system failure. And for that matters ATM service
providers and all stakeholders should work together to overcome all these challenges.

5.4 RECOMMENDATIONS

Based on the findings and conclusions of the study, the following recommendations are
forwarded to the management of the bank.

 The bank to work harder to bring the number of available ATM machines in to a highest
number so that availability and accessibility to customers will enhance. This will also
create convenience for card holders and will lead to increment in ATM card user
satisfaction.
 Continues follow up is required by the bank/branches for issues related to system failure.
Since this problem can be internally control, researcher believed that each branch needs
assigned officer for the purpose of controlling ATM related issues. From the companies
structure ATM related problem means system failure handed at head office level.in
branches ATM is responsibility for all staffs. But the researcher has suggested
centralizing the controlling system of ATM service quality.
 Awash Bank, Legetafo branch ATM services alternatives have limited applicable options,
cash withdrawal are the only service provided. As the researchers observe from the
machine options like balance enquiry and fund transfer to other account holder are listed
as a service to be provided but the service does not work. The researcher recommends the
bank to work on modifying the available service provided by the machine and add more
additional features on it to enhance customer satisfaction.
  A customer has to be announced well on the benefit and security management policy of
the bank, ATM regarding high confidential value given to it. Also every customer has to
be informed about the risk associated with putting the card and PIN together and to
literally damage the pin and change it after the first login. Although the money
withdrawal limit stated per day is mainly to prevent the risk of losing or misplacing PIN
and card at the same time the limit shall been increase by verifying further step of user
authorization to increases customer convenience.
 Generally Awash Bank ,Legetafo branch has to make continues assessment using
research and development to upgrade the service quality in related to ATM service,
specific staff shall be assigned as customer relationship manager mainly involved in
connecting the customer needs with related to ATM service.

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Appendix

Interview Questioner
Part I. Demographic Data
1. Sex of respondents Male [ ] Female[ ]
2. Age of Respondents 18-25 [ ] 26-30 [ ]
31- 40 [ ] 41-50 [ ] and >50 [ ]
3. Educational Status – Elementary Completed [ ]
– 10/12 Complete [ ]
– Diploma Complete [ ]
– Degree Graduate [ ]
– Master and Above [ ]
4. How long have you been a customer at Awash Bank?
1‒3Years [ ] 4‒6Years [ ]
5. How long have you been using ATM service?
1Years [ ] 2Years [ ] 3Years [ ] Above 4Years [ ]
 Part II. Information related to convenience and roles of ATM service on customer
satisfaction.

How do you rate the following statements about your ATM service?
1. Your ATM service is very easy to navigate.
2. Your ATM service is very easy to understand.
3. It is easy to withdraw money.
Strongly Agree [ ] Disagree [ ]
Agree [ ] Strongly Disagree [ ]
Neutral [ ]
Part III. Information related to influence and benefits of ATM service on customer
satisfaction.
How do you rate the security and privacy measure about ATM service in Awash Bank?
1. The secret code/ pin number are only known by the account holder.
2. Customer money remains in safe in case one loses his/her ATM card.
3. Through ATM service cases of cash fraud and theft are reduced.
Strongly Agree [ ] Disagree [ ]
Agree [ ] Strongly Disagree [ ]
Neutral [ ]
How do you measure the benefits of ATM service?
1. Time saving
2. 24 hours access/ can make service any time.
Strongly Agree [ ] Disagree [ ]
Agree [ ] Strongly Disagree [ ]
Neutral [ ]
Part IV. Information related to challenge facing Awash Bank customer in the usage of ATM
service.
What are the level of system related to ATM service.
No System [ ] Very Weak System [ ]
High System [ ] Moderate System [ ]
Very High System [ ]
Part V. Rate the overall Satisfaction with ATM service in Awash Bank.
Very Satisfied [ ]
Satisfied a Little [ ]
Normal Satisfaction [ ]
Dissatisfied [ ]
Very Dissatisfied [ ]