PERFORMANCE INDICES AND EVALUATION OF ATM SERVICES IN MUBI: A FACTOR ANALYTIC APPROACH

Abstract

Electronic banking is becoming prominent in all banking operations. With widespread use of Automatic Teller Machines (ATMs) banking halls have seriously been decongested as the growing population of customers now obtain fast, reliable and efficient self-service at any nearest ATM outfit. On the other hand it has been observed in recent years that while some banks are gaining competitive advantage over others with successful deployment of ATMs others are closing ATMs down due to deplorable service conditions and poor customer patronage. This study is therefore aimed at identifying the factors/indices that could enhance the performance of ATM services. The population comprised of bank customers in Mubi, Adamawa State, Nigeria who use ATMs. The sampling frame technique was applied and 9 banks that deployed A TMs were selected. Data collection instrument was a structured questionnaire administered to 270 users of ATM cards. Principal Component Analysis was adopted in the data analysis. The results obtained revealed that four factors, namely quality of infrastructure, response time, reliability of service and cost of service are the major factors that influence users' patronage. To increase customer's patronage of ATMs, it was recommended that banks should exploit these indices at the planning to enhance their performance