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International Journal of Advanced Scientific

Research & Development e-ISSN: 2395-6089
p-ISSN: 2394-8906
Vol. 02, Spl. Iss. 02, Ver. III, Aug’ 2015, pp. 532 – 542

Customer Satisfaction of ATM Services in Tirunelveli District

Dr. B.J. MOHIT WILLS
Assistant Professors, Commerce Wing – DDE, Annamalai University.

Dr. R. KARTHIKEYAN
Assistant Professors, Commerce Wing – DDE, Annamalai University.

ARTICLE INFO ABSTRACT

Article History:
Received: 23 Jul 2015;
Accepted: 24 Jul 2015;
Published online: 10 Aug 2015.
Key words:
Customer Satisfaction,
Customer Services,
Banking Service,
ATM Services,
Service Quality.
Copyright © 2015 IJASRD. This is an open access article distributed under the Creative Common Attribution
License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original
work is properly cited.
This study was conducted to critically examine the
customers’ level of satisfaction on ATM services offered by
the commercial banks in Tirunelveli District. Primary data
were collected from 140 respondents by applying
proportionate stratified random sampling technique.
Secondary data were collected from various journals,
magazines, books and pamphlets issued by the banks. Chi-
square test and Ranking technique were used to analyze
the satisfaction of customers towards the ATM Services and
bankers opinion regarding the positive impacts on banks
due to ATM installation. Majority of the customers were
use the ATMs for the purpose of withdrawing cash and
most of the customers have the opinion that their banks
were up- to -date in rendering ATM services are the major
findings of the study. The paper thus suggests that, to the
bankers, the withdrawal limit and the number of
transactions per day shall be increased to obtain the
customers full satisfaction level.

INTRODUCTION
The automatic teller machine is commonly used in bank financial transactions. It
is an unattended or unmanned device usually located on or off the banks premises. The
ATM is an electronic device with online access to the accounts in the banks, installed
and maintained by Banks at various centers like the main gate of the Banks, important
shopping and other centers in a city or a town, airports, railway stations, etc. It allows
one who has the ATM card to with draw the cash, deposit money, cheques, transfer the
funds from one account to another account, check the balance in the account and make
payment for many utility services. So there is no need for human teller or a queue at the
cash counter of the banks.
How to cite this article: Wills, M. B. J., & Karthikeyan, R., (2015). “Customer Satisfaction of ATM Services in
Tirunelveli District”. International Journal of Advanced Scientific Research & Development (IJASRD), 02 (02/III),
[Special Issue – Aug’ 2015], pp. 532 – 542.
International Conference on Innovation in Commerce and Management (ICONICM – 2015) |
Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal,
Mayiladuthurai – 609 305, Tamil Nadu, India.

1.1 Functions of ATMs

The functions of the ATMs are differed from Bank to Bank. However, their
offerings have unique features. Some of them are:
 Withdrawal of money from one’s savings / current A/C.
 Depositing money / cheque to the customers A/C.
 Transfer of funds from one A/C to another A/C
 Payment of utility services through ATMs.
 Enquiry about the account balance.
 Providing mine statement for the last occurred stipulated number of
transactions.

1.2 PIN
The PIN is used for withdrawing cash at an ATM or for purchasing goods and
services at a merchant establishment. The cardholders are advised in his own interest
to change his / her PIN to any other four – digit number of his/her choice. For this
purpose, he / she may use the PIN change option. The PIN should be safeguarded
carefully. Usage of wrong PIN there times would lock the card; the cardholder is advised
to avoid a PIN, which can be easily associated with him/her. (E.g. Telephone Number,
date of birth, etc. Besides the selected PIN value should not comprise.
 A Sequence from the associated account numbers.
 String of the same numbers.
 Historically significant dates.
Since an unauthorized person can access the ATM services on the card holder’s
account if he gains the card and the PIN, the card should remain in card holder’s
possession and should not be handed over to anyone else. The Bank bears no liability for
the unauthorized use of the card. The PIN is sent in a PIN mailer. It is the card holders’
responsibility to ensure that the knowledge of the PIN/PIN mailer does not fall into any
other person’s hands. (The cardholders should change the PIN immediately if it is
accidentally divulged).

1.3 Statement of the Problem

The research title is “Customer Satisfaction of ATM services in Tirunelveli
District” Banking, being a service industry, has lot of stake in customer satisfaction. An
automatic teller machine can hardly comprehend the customers’ needs and wants. This
problem leads to the following research questions. How far the customers’ needs are
fulfilled? What are their other requirements? How can the ATMs better serve the
customers? This study aims to highlight the customer satisfaction levels towards the
ATM services tendered by various banks in Tirunelveli District. This study is also
concerned with the awareness of public towards the usage of ATM, improvements to be
made on the ATM, and other aspects.

1.4 Need for the Study

As a mixed economy there are both public sector and private sector banking
institutions existing in India like many other countries. Nationalized banks and private
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 Customer Satisfaction of ATM Services in Tirunelveli District

sector banks compete with each other to retain their existing customers and have new
customers and to establish a monopoly among the customers. All the banks render the
services of personal Banking, Gold Banking, NRI Banking, Internet Banking ATM
service and Core Banking services. Among those services ATM service seems to be an
important one. The extent to which the customers are satisfied with the ATM extent
services is to be studied in this article.

1.5 Objective of the Study

 To study the functions of ATM Centers.
 To examine the relationship between the level of satisfaction of the customers
towards ATM services in banks.
 To identify the factors influencing the customer satisfaction in ATM services.
 To offer suitable suggestions for improving the ATM in Tirunelveli district.

1.6 Scope of the Study

Since the present study has been designed to study the customer satisfaction
towards ATM services provided by various banks focusing on Tirunelveli district, the
ATMs of various banks functioning in Tirunelveli district and its users were covered.
But the overall functionalities of various bank’s ATMs have been covered.

1.7 Hypotheses
There is no significant relationship between the customers’ satisfaction towards
Bank ATM services and their demographic factors.

1.8 Operational Definitions of Concepts

Debit card: It is a plastic card issued by the banks for accessing the ATMs for
cash withdrawals, deposit, balance enquiries and shopping, utility services, etc.
Credit card: It is a card issued by banks to the customers having equivalent
value of a loan forwarded to them. Credit cards can be used in the ATMs for
withdrawal of money.

METHODOLOGY
The customers of various banks in the study area are selected for collecting
primary data. The information from the ATM users and bank officials are collected
through questionnaire and an interview schedule.
The Proportionate stratified random sampling method was adopted and 140
samples were selected from 14 banks on the whole. 10 ATM users from each bank were
selected on random. The required data were collected from ATM users through
questionnaires. In addition to this, the bankers were interviewed through the interview
schedules.
The following table gives the sample distribution followed in this study:
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International Conference on Innovation in Commerce and Management (ICONICM – 2015) |
Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal,
Mayiladuthurai – 609 305, Tamil Nadu, India.

Table – 1: Sample Distribution

S. NO Name of the Bank Male Female Total
1. State Bank of India 8 2 10
2. ICICI Bank 8 2 10
3. State Bank of Travancore 8 2 10
4. Indian Orerseas Bank 8 2 10
5. Canara Bank 8 2 10
6. Indian Bank 8 2 10
7. Corporation Bank 8 2 10
8. The south Indian Bank 8 2 10
9. Tamil Nadu mercantile Bank Ltd. 8 2 10
10. Dhanalakshmi Bank Ltd. 8 2 10
11. Oriental Bank of commerce Ltd 8 2 10
12. Catholic Sylian Bank Ltd 8 2 10
13. The Federal Bank Ltd 8 2 10
14. Karur Vysya Bank Ltd 8 2 10
Total 112 28 140

2.1 Statistical Tools Used for the Study

The analysis is made with the help of the classification tables. The satisfactions
of customers towards the ATM services offered by banks have been analysed with the
help of Chi-square Test. Ranking Technique was used to determine the banker’s opinion
regarding the positive impact on banks due to ATM installation.

ANALYTICAL FRAMEWORK
3.1 Purpose of Using ATMs
As the ATMs offer a wide range of service, customers use them most has been
studied.

Table – 2: Purpose of Usage

S. No Purpose of usage Number of Respondents Percentage
1. Withdrawal of cash 108 78
2. Depositing funds 6 4
3. Transfer of funds 10 7
4. utility services 10 7
5. Balance enquiry 6 4
Total 140 100
Source: Primary data
The sample respondents were classified on the basis of the purpose of using the
ATMs. Out of 140 respondents, 108(78 percent) mostly use the ATMs for withdrawal of
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 Customer Satisfaction of ATM Services in Tirunelveli District

cash/ 6 (4 percent) use for money depositing, 10 (7 percent) use for transferring the
funds, 10 (7 percent) use for utility services and the remaining 6(4 percent) use for
balance enquiry.

3.2 Relationship between Socio-economic Factors and Level of Satisfaction of

Customers towards Bank ATM Services
In Order to study the relationship between the demographic factors and the level
of satisfaction, the sample is grouped into three categories, namely – low-level, medium
level and high level.
The level of customer satisfaction is determined by the score value calculated
determined by the score value calculated for 10 statements, incorporating 14 variables
of customers’ satisfaction by adapting the 5 points Likerts scaling technique.

Table – 3: Scores
Low level (x-So) High level (x+So)
18.49 41.51

3.3 Level of Satisfaction of Customers on Bank ATM Services

Table – 4: Level of Satisfaction of Sample Respondents
S. No Level of satisfaction Number of Respondents Percentage
1. High 74 52.9
2. Medium 40 28.5
3. Low 26 18.6
Total 140 100
Source: Primary data
For determining the relationship between the customers satisfaction towards
Bank ATM services and their demographic background “Chi-square Test” has been
employed.

Chi – square Test

The following formula has been used for computing “Chi – square Test”.
 x2 = with (r-1) (c-1) degrees of freedom
 x2= Chi – Square value
 O- Observed frequency
 E= Expected frequency
 r= No of rows in a contingency table
 C= No of columns in a contingency table
The calculated value of x2 is compared with the table value of x2 for a given level of
significance at 5 percent level.

Null Hypotheses
The Null hypotheses were formulated to find to find out whether the socio-
economic factors of the respondents are independent of their level of satisfaction.
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International Conference on Innovation in Commerce and Management (ICONICM – 2015) |
Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal,
Mayiladuthurai – 609 305, Tamil Nadu, India.

Table – 5: Consolidated Results of Chi-square Test

S.NO Factors Calculated value Table value Remarks
1. Sex 6.132 5.99 Significant
2. Age 46.23 9.49 Significant
3. Marital status 3.136 5.99 Insignificant
4. Educational Qualification 11.816 12.6 Insignificant
5. Employment 3.87 12.6 Insignificant
6. Monthly Income 9.697 9.49 Significant
7. Experience in profession 1.98 9.49 Significant
8. Employment of spouse 3.409 5.99 Insignificant
9. Type of family 23.876 5.90 Significant
10. Size of the family 25.82 9.49 Significant
11. Number of Dependents 0.2758 5.97 Insignificant
12. Type of locality 13.5375 9.49 Significant
13. Nature of Housing 3.7356 9.49 Insignificant
14. Distance from Residence 14.295 9.49 Significant

Out of 14 socio – economic background variables, marital status, Educational

Qualification, Employment, Experience in Profession, Employment of Spouse, Number
of Dependents, Nature of Housing are the variables associated with the level of
consumer satisfaction in Bank ATM services.
In the case of sex, Age, monthly Income, Type of family, Size of family, Type of
locality, Distance from Residence variables are not influenced the customer satisfaction
in ATM services.
Customer’s Opinion about whether the Banks are up-to-date in rendering ATM
services.
The customer’s satisfaction depends upon whether their banks are up-to-date in
rendering the services regarding ATMs.

Table – 6
S. No Opinion of the Customers Number of Respondents Percentage
1. Yes 128 91
2. No 12 9
Total 140 100

Source: Primary data

From the above table, it could be understand that, out of 140 respondents, 128
(91 percent) give the opinion that their banks are up-to-date in rendering ATM services
and the remaining (12(9 percent) are of the opinion that their banks are not up- to- date
in rendering ATM services.
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 Customer Satisfaction of ATM Services in Tirunelveli District

Table – 7: Level of Satisfaction towards the Performance of ATM Machines

S. No Level of satisfaction Number of respondents Percentage
1. Satisfied 130 93
2. Not satisfied 10 7
Total 140 100
Source: Primary data
Out of 140 respondents 130(93 percent) of them are satisfied and only 10(7
percent) of them are not satisfied with regards to the performance of ATM machines.

3.4 Customer’s Opinion Regarding Opening of More ATM Points

The opinion of customers whether to open more ATM points in Tirunelveli
District has been analyzed.

Table – 8
S. No Opinion Number of respondents Percentage
1. Yes 88 63
2. No 52 37
Total 140 100
Source: Primary data
Out of 140 respondents, 88(63 percent) say that more ATM points should be
opened in Tirunelveli District and they suggest various places for they do not them. The
remaining 52(37 percent) say that do not wish to open more ATM points in Kanakumari
District.

3.5 Customer’s Opinion about the Safety of ATM Locations in Tirunelveli

District
The safety of ATM location is a very important factor to open ATMs. It is to be
well analyzed that whether the location for opening ATMs are safe to deal with money.

Table – 9
S. No Customer’s Opinion Number of respondents Percentage
1. Safe 132 94
2. Not safe q 8 6
Total 140 100
Source: Primary data
Out of 140 respondents, 132 (94 Percent) are of the opinion that the ATM
locations in Tirunelveli district are safer to deal with money are 8(6 percent) are safer to
deal with money and 8 (16 percent) are of the opinion that they are not safe.

3.6 Positive Impacts on Banks Due to ATM Installation

There may be many positive impacts on banks due to the opening of ATM
centers.
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International Conference on Innovation in Commerce and Management (ICONICM – 2015) |
Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal,
Mayiladuthurai – 609 305, Tamil Nadu, India.

Table – 10
S. Rank Rank Rank Rank Rank
Impacts Total Ranking
No 1 2 3 4 5
1. Higher deposit level 2 6 4 2 0 50 II
Lower crowd during
2. 3 3 5 2 1 47 III
peak hours
3. Lesser clerical work 0 1 1 7 5 26 IV
More attractiveness
4. 9 3 2 0 0 63 I
customers
5. Any others 0 1 2 3 8 24 V

Total 70 56 42 28 14 210

Source: Primary data

From the above table it could be clearly understood that from the banker’s point
of view the main impact due to opening of ATM centers is the attractiveness among
customers. It automatically leads to higher deposit level, which ranks the second place.
Moreover, the crowd peak hours is also decreased due to the ATM installation. The
lesser clerical work and any other reason gets least important among the bankers.

FINDINGS OF THE STUDY

 As a result of a pilot study, made initially in 2 or 3 banks, female ratio among the
ATM users found to be about 20 percent. Hence the sample respondents were
chosen in the ratio 4:1 according to their sex.
 112 (80 percent) of the respondents are male and out of them 65 (46.4 percent)
are highly satisfied and 29(20.9 percent) are at medium level and 18 (12.9
percent) are at low level satisfaction.
 75(53.6 percent) of the respondents belong to the age group of 25-to 50 and out of
them 59(42.2 percent) are highly satisfied and 10(7.1 percent) are at medium
level and 6(4.3 percent) are at low level satisfaction.
 Out of 140 respondents, 121 (86.4 percent) are married and among them 67 (47.9
percent) are at high level satisfaction and 34 (24.2 percent) are at medium level
and 20 (14.3 percent) are at low level satisfaction.
 Among the total 140 respondents, 71 (50.7 percent) are of college level education
and among them 46(32.8 percent) are highly satisfied about the bank ATM
services and 18(12.8 percent) are at medium level and 7(5 percent) are at low
level satisfaction.
 48 (34.3 percent) are of government employment and out of them 23(16.4
percent) are highly satisfied and 18(12.8 percent)are at medium level and 7 (5
percent) are at low level satisfaction.
 Among 140 respondents, 69(49.2 percent) are earning income between Rs. 15,000
and Rs. 50,000 and out of them 35(25 percent) are at high level and 26(18.6
percent) are at medium level and 8(5.7 percent) are at low level satisfaction.

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 Customer Satisfaction of ATM Services in Tirunelveli District

 Out of total 140 respondents, 75(53.6 percent) are of the experience between 5
years to 15 years in their profession and among them 43(30.8 percent) are highly
satisfied and 21(15 percent) are at medium level and 11(7.8 percent) are at low
level satisfaction.
 107 (76.4 percent) respondents have their spouses, unemployed and out of them
61(43.6 percent) are at high level and 27(19.2 percent) and 19(13.6 percent) are
at medium and low level satisfaction respectively.
 Out of total respondents, 99(70.7 percent) respondents come from nuclear family
and among them 63(45 percent) are at high level and 27(19.2 percent) at medium
level and 9(6.5 percent) at low level satisfaction.
 74 (52.9 percent) are from small families and among them 54(38.6 percent) are
highly satisfied and 13(9.3 percent) are at medium level and 7(5 percent) are at
low level satisfaction.
 Among 140 respondents, 108(77.1 percent) have their dependents below 5 and
out of them 56(40 percent) are highly satisfied and 32(22.8 percent) and 20(14.3
percent) are at medium and low level satisfaction respectively.
 83(59.3 percent) respondents are from urban locality and among them 53(37.9
percent) are at high level and 19(13.5 percent) and 11(7.9 percent) are at medium
and low level satisfaction respectively.
 Out of 140 respondents, 61(43.5 percent) respondents reside in rented houses and
among them, 37(26.5 percent) are highly satisfied and 16(11.4 percent) are at
medium level and 8(5.6 percent) are at low level satisfaction.
 73(52.2 percent) respondents have their residence nearer to their bank’s ATM
and out of them 47 (33.6 percent) are at high level and 187(12.8 percent) are at
medium level and 8(5.7 percent) are at low level satisfaction respectively.
 108(78 percent) respondents use the ATMs for the purpose of withdrawing cash.
 128(91 percent) of the total respondents have the opinion that their banks are
up-to-date in rendering ATM services.
 130(93 percent) respondents are satisfied towards the performance of ATM
machines and also they have the opinion that their ATM machines are users
friendly.
 Among the total 140 respondents, 88(63 percent) respondents suggest that more
ATM points shall be opened in Tirunelveli district regarding their respective
banks.
 132(94 percent) respondents have the opinion that the ATM locations in
Tirunelveli district are safer to deal with the money.
 Most of the banks have realized more attractiveness towards customers due to
ATM installation and as a result higher deposit level has also been met due to
ATM installation.

SUGGESTIONS
 Usage of ATMs by Women customers been analyzed and it was found out that
the3 percentage of women ATM users in very low. Hence Bankers may take
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International Conference on Innovation in Commerce and Management (ICONICM – 2015) |
Organized by Department of Commerce, A.V.C. College (Autonomous), Mannampandal,
Mayiladuthurai – 609 305, Tamil Nadu, India.

certain steps to attract Women customers and the ATM centers may be opened at
residential area.
 The banks can add the facility of transferring funds from one account to another
through the ATMs as like as ICICI.
 The withdrawal limit and the number of transactions per day shall be increased
to obtain their satisfaction.
 Since the banks in Tirunelveli have only a few ATM centers, more ATM centers
shall be opened in the urban areas like Chettikulam, Parvathipuram,
Collectorate Junction, etc. More ATM Centres shall also be opened in rural and
sub-urban areas to facilitate the rural people.
 The security guards in the ATM centers can be provided with the training to
enhance their communication skills and personality traits since all the customers
are not satisfied with their performance.
 The mobile commerce may be adopted by banks in view of giving up to date
information about the arrival of new products in the ATM service and position of
the balance to their customers, through mobile phones.
 The banks can consider the feasibilities of adding money-depositing facility in
their networked ATMs, which they had a while at the bank counters.
 The security guards deployed in the ATM centers can be strictly instructed to
make sure the customers privacy in the ATM.

CONCLUSION
All the banks tend to upgrade the popularity of their respective ATM service by
offering various products in the service by offering various products in the services.
Though, they have done their best on their part, it cannot be meant that their customers
are absolutely satisfied unless they consider the needs, satisfaction and expectations of
their customers. If the Banks implement the suggestions made in this study, the
efficiency of the ATM services of all those banks shall be enhanced further more.

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