Effectiveness of ATM in improving Access to Banking Services: the Case study of CRDB Bank Ltd

The study explored the effectiveness of automated Teller machines (ATM) in improving access to banking services, a case study of CRDB Bank. Specific objectives of the study were determine CRDB customers’ knowledge on the use of ATM, to identify banking services which are offered through ATM, to establish critical factors for successful deployment of ATMs, and to determine the effectiveness of ATM in improving access to banking services. Data was collected from 35 CRDB Bank customers and 10 CRDB Bank staff through open ended, semi structured questionnaires and interviews. The content analysis method was applied to the data collected whereby a qualitative analysis was done based on the inductive approach. Inductive approach involved development of theories as result of observable empirical data. The study findings revealed that the use of ATM technology provides opportunity for the bank to use this service delivery system for strategic advantage, and that because of ATM autonomy in executing transactions, the number of customers preferring to use this self-service delivery system has increased. More customers are now using ATMs for cash withdraws, cash deposits, printing statements, balance inquires, money transfers and value adding services such as utility payments and airtime top ups. In order to improve the effectiveness of ATMs in providing banking services to its customers, CRDB bank should proactively monitor customers’ preference with regard to use of this service delivery channel and focus on important aspects of security and privacy and efficient operation of ATMs. It was noted that provision of foreign currency exchange, interbank transfers, and multi currency deposits, would enhance banking services offered through ATMs while reduction in ATMs downtime, optimal cash deployment in ATMs, convenient locations and improve related functional infrastructure to provide customers with safe and full time convenient services