Monetary policy implementation and its effect on inflation in Tanzania an empirical investigation for the 1995 to 2005 period

Many Bank and Financial Institutions in the country installed Automatic Teller Machine (ATM) so as to increase the flexibility in serving customers. The other purpose is to reduce the risk of holding hard cash and reduce the workload to Tellers. The number of Automatic Teller Machines installed by these Banks and financial Institutions has increased from two in 2000 to 366 in 2007. The overall objective of undertaking the study was to analyze the efficiency and effectiveness of ATM's machines in providing Bank's operation and customer's satisfaction. Other objectives were to assess the level of ATM usage knowledge amongst Bank clients, problems experienced by clients and identifying the ways to mitigate the problems experienced. Specific objectives were to determine the awareness of ATM users and the satisfaction level delivered from the services, to investigate the impact on Bank performance in terms of labour, cost efficiency and profitability. The study area was TPB branches within Dar es Salaam region Data collection involved Interview and Questionnaires from customers selected on simple random sampling and employees were stratified to determine the level of satisfaction and benefits accrued out of usage of ATM's. The findings of the study includes the full awareness of usage of ATM'S by customers respondent to questionnaires and confirmed usage of the devices for the past six months before the study. Notable findings on the Customer's frequency of usage of ATM noted that most of the customer use the facility only once per month to transact with the bank and only few customers managed to transact more than once per month. The ATM were located within vicinity of clients as it took within 30 minutes to reach and transact with ATM machines within Dar es salaam where majority of ATMs are installed. Respondents' opinion in regards to Price/Cost of transacting with ATM revealed that it cost higher to customers to transact with ATM rather than visiting Bank halls. The customers responded that most of TPB branches do not have Bank employees to assist customers who fail to operate ATMs and most of the services are not available during Saturdays and Sundays due to outage. Respondents recommended that the TPB management should address the weakness of Customer care by ensuring presence of TPB staff within ATM machines and installation of generators so as to eliminate the process of outage and reduce the cost of ATM transaction cost.