Description
The Indian ATM industry has seen explosive growth in recent times. ATMs represent the single largest investment in the electronic channel services for the Banks.
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Impact Of Atm On Customer Satisfaction
(A Comparative Study of SBI, ICICI & HDFC bank)
Sultan Singh, Ms. Komal, (Ph.D.)
Abstract:
This paper presents the impact of ATM on customer satisfaction. This is a comparative study of three
major banks i.e. State Bank of India, ICICI bank and HDFC bank. This paper has been divided into two
sections. First section presents the introduction of ATM, brief history of three Banks compiled through
the literature available in the feld. It also includes the review of the various services provided by the
three banks under study. Second section presents the result obtained on the basis of the data collected
for the three banks. A sample of 360 respondents equally representing each bank has been taken through
questionnaire. Data has also been collected through interview also. Then various statistical tools have been
used accordingly to compile the result.
KEY WORDS: ATM, Customer satisfaction, Fees, Problems, ATM services, Banks.
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
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Introduction
ATM means neither “avoids traveling with
money” nor “any time money,” but certainly
implies both. Slim ATM cards are fast replacing
confounding withdrawal forms as a convenient
way of getting your money from banks. In a way,
they are rewriting the rules of fnancial transaction.
A smart person no longer needs to carry a wallet-
full of paper money on his person. All he needs to
do is fsh out an ATM (automated teller machine)
card, insert it in the slot, punch in a few details and
go home with hard cash.
Automated teller machines (ATMs) were the
frst well-known machines to provide electronic
access to customers. With advent of Automatic
Teller Machines (ATM), banks are able to serve
customers outside the banking hall. ATM is
designed to perform the most important function of
bank. It is operated by plastic card with its special
features. The plastic card is replacing cheque,
personal attendance of the customer, banking
hour’s restrictions and paper based verifcation.
ATMs have made hard cash just seconds away all
throughout the day at every corner of the globe.
ATMs allow you to do a number of banking
functions – such as withdrawing cash from
one’s account, making balance inquiries and
transferring money from one account to another
– using a plastic, magnetic-strip card and personal
identifcation number issued by the fnancial
institution.
The Indian ATM industry has seen explosive
growth in recent times. ATMs represent the single
largest investment in the electronic channel
services for the Banks. In India, HSBC set the
trend and set up the frst ATM machine here in
1987. Since then, they have become a common
sight in many of our metros. Automated Teller
Machines (ATMs) have gained prominence as a
delivery channel for banking transactions in India.
Banks have been deploying ATMs to increase their
reach. While ATMs facilitate a variety of banking
transactions for customers, their main utility has
been for cash withdrawal and balance enquiry. As
at the end of October 2007, the number of ATMs
deployed in India was 31,078. According to some
estimates the total cash movement through ATMs
across India was around Rs. 70,000 crore in FY
06. Clearly, industry watchers forecast a bright
future for ATMs in India. While the ATM is a
great service for customers, for the banks it means
immense savings on the cost of operations. While
a typical cash transaction carried out in a banks
branch premise would cost Rs 40 that in an ATM
will only cost Rs18translating into a cost saving of
Rs 22 per transaction.
ATM Networks
The ATMs of a bank are connected to the
accounting platform of the bank through ATM
switches. Inter-bank ATM networks are created
by setting up apex level switches to communicate
between the ATM switches of different banks.
The inter-bank ATM networks facilitate the use
of ATM cards of one bank at the ATM(s) of other
banks for basic services like cash withdrawal and
balance enquiry. Banks owning the ATMs charge a
fee for providing the ATM facility to the customers
of other banks. The ATM deploying bank from the
card issuing banks recovers this fee referred to as
‘interchange fee’. However the interchange fee is
not fxed across banks and depends on the terms of
bilateral / multilateral arrangements. Banks with
larger ATM network treat interchange fee as an
important stream of revenue.
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Inter-connectivity of ATM Networks for
enhanced access
Inter-connectivity of ATM Networks provides
access to the customers to use any ATM in the
country irrespective of the bank with which the
customer is banking. There are a number of ATM
network switches such as CashTree, BANCS,
Cashnet Mitr and National Financial Switch
(NFS). In addition, most ATM switches are also
linked to VISA or MasterCard gateways.
Charges levied by banks
REVISED FEE STRUCTURE FOR ATMs
Service Charges
For use of own
ATMs for
any purpose
Free (with immediate effect)
For use of other
bank ATMs
for balance
enquiries
Free (with immediate effect)
For use of other
bank ATMs
for cash with-
drawals
* No bank shall increase the charges prevailing
as on
December 23, 2007 (i.e. the date of release of
Approach Paper on RBI website)
* Banks which are charging more than Rs.20
per transaction shall reduce the charges to a
maximum of Rs.20 per transaction by 31-Mar-
08
* Free - with effect from April 1, 2009.
Providing relief to millions of users, the RBI
has also said from April 1, 2009, customers using
the inter-bank ATMs (ATMs of other banks) for
cash withdrawals or balance enquiries will not be
charged any fee. As of now, customers have to
pay Rs 50 as annual charges for using the ATM
facility of their bank, while charges ranging from
Rs 20-Rs 50 per transaction are levied for the
inter-bank ATM transactions. Customers are also
paying anything between Rs 10- Rs 20 for making
balance enquiries through inter bank ATMs.
Brief History Of The Banks
The State Bank of India (SBI) is the oldest
and largest bank in the country. Its origins go
back to the frst decade of the 19th century, when
the Bank of Calcutta was established on 2 June
1806. The bank got its present name after an Act
of Parliament in May 1955 and the State Bank
of India was constituted on 1 July 1955. Today,
SBI has a phenomenal 9,559 branches and its
ATM network is spread across 6,473 of its own
locations& total 8,000ATMs including of those of
its associate banks.
State Bank of India is a successor to Imperial •
Bank of India, which was established in
1921.
The bank came into being on 1.7.1955 through •
the State Bank of India Act, 1955.
States of India joined the State Bank Group •
as subsidiaries under the State Bank of India
(Subsidiaries Banks) Act, 1959.
State Bank of India has the following seven •
Associate Banks (Abs) with controlling
interest ranging from 75% to 100%.
State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of Indore (SBIr)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)
ICICI Bank India is the largest private sector
bank. Its banking products and fnancial services
are some of the superior ones. The reach and
market of ICICI Bank is unmatched in India as yet.
It offers a countrywide network of 1,000 branches
and 3,680 ATM’s reaching out to your doorsteps.
Founded by the Government of India in •
the 1960’s, it was one of the three fnancial
institutions set up to fnance large industrial
projects
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Earlier known as Industrial Credit and •
Investment Corporation of India, it did not
entertain retail customers and was thus not a
bank in the literal sense.
It was in the 1990’s that a subsidiary was set •
up in the name of ICICI Bank to take up retail
banking services including deposits, credit
cards, loans etc.
In 2002, the ICICI Bank was merged back •
with the ICICI and the result was the ICICI
Bank Limited operational now.
The Housing Development Finance
Corporation (HDFC) Bank is one of the frst banks
in India to offer its customers the bill pay facility.
HDFC Bank is also a leader in online purchase
(using the HDFC Bank DirectPay product). The
bank also offers its customers a free personalized
payable-at-par chequebook and services like real
time gross settlement and national electronic fund
transfer.
HDFC Bank was among the frst to receive •
an ‘in principle’ approval from the RBI to set
up a bank in the private sector as part of the
liberalization of the Indian banking industry
in 1994.
The bank was incorporated in August 1994. •
The bank has 1,148branches and 1,647ATMs •
network spread across the country.
Review Of Literature
Agnihotri Peeyush (2001) in his paper ‘ “ IT
way of getting cash” explained the working of
ATM, ATM penetration per million persons in
Asian countries and the system of security –how it
works and also the frauds of ATM.
Simhan Raja (2003) in his article, “Shared ATM
networks gain favour” explained the importance
of shared network of ATM in Indian banks.
Puri and Kamath (2004) in their article, “Indian
Banks: Bigger, Better & Remote Controlled”
explained that banks in India have traditionally
claimed the strength of their networks based on
the number of branches. The logic was that the
increase in branch network corresponds to more
transactions, more business and therefore more
profts. Not unlike the rest of Asia, where branch
rationalization frst started in Japan and then
spread across the continent, this logic is steadily
getting reversed in India.
Kaul Urvashi (2007) in his article, “ATM: The
Power of Cash” explained the importance and
benefts of ATM, the players in the Indian market
and presented various satistical data concerning
the growth of ATM.
Manager FSDNCR Corporation India Pvt.
Ltd. (2008) in his article, “ATMs: Changing
Fundamentals” stressed that he Indian ATM
industry has seen explosive growth in recent times
and Banks have committed to substantial capital
outlays on ATM deployment, recognizing the
signifcance of the 3 Ms – Maintenance, Monitoring
and Management – of the ATMs to make the self
service channel a reliable and proftable one.
Research Methodology And Data
Base
The present study is of analytical and
exploratory nature. Accordingly, the use has been
made of primary as well as secondary data. The
secondary data have been collected mainly from
RBI monthly bulletins, Financial Express political
weekly, various newspapers and other literature
available in the feld. To know the problems of
ATM structured questionnaires have been used
to collect the data from customers using ATM
services. To analyze the data, various statistical
techniques such as average, std. deviation and
normal distribution have been used as per the
requirement of the data. F test has also been used
to analyze the variances.
Objectives Of The Study
The paper aims to examine the scenario of ATM
in three major banks. In this broader framework, an
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attempt is made to achieve the following specifc
objectives:
To analyze the present ATM facilities 1.
provided by SBI, ICICI & HDFC Bank.
To examine the factors affecting the choice 2.
of ATM.
To examine the impact of ATM on customer 3.
satisfaction by appraising the problems faced
by the customers.
To analyze the post purchase behavior of 4.
customers regarding the different banks
under study.
Hypothesis
There is no signifcant difference in ATM 1.
facilities provided by SBI, ICICI & HDFC
Bank
There is no signifcant difference in the 2.
factors affecting the choice of ATM in SBI,
ICICI & HDFC Bank.
There is no signifcant difference in the 3.
impact of ATM on customer satisfaction in
SBI, ICICI & HDFC Bank.
There is no signifcant difference in the post 4.
purchase behavior of customers in SBI,
ICICI & HDFC Bank.
Data Collection
Primary data has been collected through
questionnaire. A sample size of 360 respondents
has been taken including 120 for each bank i.e. SBI,
ICICI & HDFC bank. A personal visit has been
made to these banks to know about the branches &
ATM facilities provided by these banks.
Data Anaysis
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
The present paper entitled “Impact of ATM
on customer satisfaction” focus that customer
satisfaction is one of the major factors measuring
the performance of the banks. This paper examines
the customer satisfaction level in the three banks
under study with special reference to problems
faced, responses about the fee charged and post
purchase behavior of the consumers after using
ATM. The paper also examines the relationship
between various ATM facilities, factors affecting
the choice of ATM and its interplay with customer
satisfaction.
The customer satisfaction level has been
analyzed in two terms i.e. material customer
satisfaction (MCS) level and abstract customer
satisfaction (ACS) level. Customer satisfaction
in material sense denotes the aggregate position
of the banks in terms of fee charged, frequency
with which problems are faced and post purchase
behavior of the customers. In abstract sense,
customer satisfaction level denotes the position of
the banks in terms of post purchase behavior, the
effciency of facilities provided and the example
of others using the ATM of the same bank.
Material Customer Satisfaction
Level (MCS)
Material customer satisfaction level has been
examined on the basis of three variables i.e.
reasonability of the fee charged, frequency with
which problems are faced and the post purchase
behavior of the customers.
1. Fee Charged
Fee charged by the banks is one of the variables
taken for checking customer satisfaction level. If
customer feels that the fee charged by the bank is
reasonable then he is satisfed and vice-versa. Five
degrees of reasonability have been taken and they
are coded as 5, 4, 3, 2, &1. There is direct relation
between fee charged and customer satisfaction.
Table-1
Reasonability of fee charged
Name
of the
Bank
Highly
Reason-
able
Rea-
son-
able
Can’t
say
Unrea-
sonable
Highly
Unrea-
sonable
a) SBI 12 66 18 12 12
b)
ICICI
Bank
- 36 66 18 -
c)
HDFC
Bank
12 24 24 48 12
Table-1.1
Satisfaction level regarding the fees charged
Name of the Bank Satisfaction Level
a) SBI 69%
b) ICICI Bank 63%
c) HDFC Bank 56%
satisfaction level for fee charged
0%
10%
20%
30%
40%
50%
60%
70%
80%
Satisfaction Level
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-1
Table-1 shows the responses number of per
person regarding the fee reasonability. Table-1.1
& fg.-1 shows the coded results in percentage
term.
2. Problems Faced
Second parameter for measuring MCS level
is problems faced by the consumers while using
ATM of a particular bank. If consumers are facing
problems more frequently, customer satisfaction
level will be less and vice-versa. There is indirect
relation between the problems faced and the
customer satisfaction. Three degrees namely
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often, rarely and never have been taken and they
have rated as 3, 2, & 1 respectively.
Table-2
Frequency of problems faced
Problems Often Rarely Never
Card gets blocked
a) SBI 24 36 60
b) ICICI Bank - 66 54
c) HDFC Bank 12 48 60
Machine out of cash
a) SBI 42 48 30
b) ICICI Bank 60 42 18
c) HDFC Bank 42 72 6
No printing of statement
a) SBI 30 24 66
b) ICICI Bank 36 42 42
c) HDFC Bank 60 42 18
Machine out of order
a) SBI 36 48 36
b) ICICI Bank 42 48 30
c) HDFC Bank 48 66 6
Old notes
a) SBI 24 30 66
b) ICICI Bank 24 36 60
c) HDFC Bank 42 54 24
Wrong amount of statement
a) SBI - 24 96
b) ICICI Bank - 24 96
c) HDFC Bank - 42 78
Poor visibility of statement
a) SBI 6 24 90
b) ICICI Bank 30 36 54
c) HDFC Bank 6 60 54
Reduction in balance without
cash payment
a) SBI - 18 102
b) ICICI Bank 6 30 84
c) HDFC Bank 6 48 66
If any other, please specify
a) SBI - 6 114
b) ICICI Bank - 6 114
c) HDFC Bank - 6 114
Table-2 exhibits the frequency of the problems
faced by the customer in the three banks.
Table-2.1
Satisfaction level regarding the problems
Name of the Bank Satisfaction Level
a) SBI 82%
b) ICICI Bank 78%
c) HDFC Bank 73%
Satisfaction level for Problems
82%
78%
73%
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-2
Table-2.1 & fg.-2 reveals the coded results.
Coding for the three degrees of various problems is
3, 2 & 1 respectively. As exhibited by the table the
customer satisfaction level for problems is highest
in SBI i.e. 82%, and ICICI & HDFC are on number
two and three with 78% and 73% respectively. It
means people are not facing problems more often
in SBI.
3. Post Purchase Behavior
Post purchase behavior has been analyzed
through two statements. If they are agreeing with
these statements then their customer satisfaction
level is rated to be high. There are fve degrees
for each statement and they are rated as 5,4,3,2 &
1 accordingly. Post purchase behavior has direct
relation with customer satisfaction level.
Table-3
Post purchase
Behavior
Strongly
Agree
Agree
Unde-
cided
Dis-
agree
Strongly
Disagree
Continue to
use this
ATM in
future
a) SBI 36 78 - 6 -
b) ICICI
Bank
36 84 - - -
c) HDFC
Bank
48 60 12 - -
Recommend
this
ATM to
others
a) SBI 12 36 60 12 -
b) ICICI
Bank
12 78 30 - -
c) HDFC
Bank
24 70 26 - -
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Table-3 depicts the responses of the users
regarding their post purchase behavior after using
ATM.
Table-3.1
Name of the
Bank
Satisfaction
Level
Result as % of
Total
a) SBI 912 76%
b) ICICI Bank 978 82%
c) HDFC Bank 994 83%
Post Purchase Behavior
76%
82%
83%
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-3
Table 3.1 and fgure 3 envisages the coded
results after giving weightings. The highest rating
is of HDFC with 83%, then ICICI is having 82%
and SBI is third with 76% as for as post purchase
behavior is concerned.
Overall Material Customer Satisfaction
Level
After considering all the elements of customer
satisfaction they are combined together to
fnd out the overall customer satisfaction level
in materialistic terms. The overall customer
satisfaction level is the combination of three
parameters i.e. fee charged, frequency of the
problems faced and the post purchase behavior.
Table-4
Name of
the Bank
Fee
Charged
Prob-
lems
Faced
Post Pur-
chase Be-
havior
Total
% of
total
marks
a) SBI 414 2658 912 3984 79%
Name of
the Bank
Fee
Charged
Prob-
lems
Faced
Post Pur-
chase Be-
havior
Total
% of
total
marks
b) ICICI
Bank
378 2514 978 3870 77%
c) HDFC
Bank
336 2370 994 3700 73%
79%
77%
73%
70%
71%
72%
73%
74%
75%
76%
77%
78%
79%
a) SBI b) ICICI Bank c) HDFC Bank
Fig.-4
Table-4 & fg.-4 shows clearly that in SBI
material satisfaction level is highest, 2nd is ICICI
and 3
rd
is HDFC.
So, material customer satisfaction is highest
in SBI, then ICICI and last is HDFC among the
three banks. This result is also supported by the
secondary data. For example, according to the
Outlook Best Bank Award, which was given in
Nov. 2007, SBI is the 1
st
largest bank in India,
ICICI is the 2
nd
largest bank and HDFC is the 3
rd
largest bank in India.
Abstract Customer Satisfaction
Level (ACS)
Abstract customer satisfaction level has been
examined through the deep study of the various
parameters of customer satisfaction. Three
parameters have been chosen for this purpose i.e.
factors affecting choice of ATM, the purpose for
which ATM is often used and the problems faced
while using ATM.
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1. Factors affecting choice of ATM
While choosing ATM of a particular bank
customer takes care of some things.
They are known as factors affecting the choice
of ATM.
Table-5
Trust and
security
V. Imp Imp Neutral
Un
Imp
V. Un
Imp
a) SBI
114
(95)
6
(5)
- - -
b) ICICI
Bank
120
(100)
- - - -
c) HDFC
Bank
108
(90)
6
(5)
6
(5)
- -
Speed
a) SBI
66
(55)
54
(45)
- - -
b) ICICI
Bank
60
(50)
48
(40)
6
(5)
6
(5)
-
c) HDFC
Bank
36
(30)
72
(60)
6
(5)
6
(5)
-
Example of
others
a) SBI
6
(5)
24
(20)
42
(35)
24
(20)
24
(20)
b) ICICI
Bank
6
(5)
36
(30)
48
(40)
18
(15)
12
(10)
c) HDFC
Bank
12
(10)
42
(35)
36
(30)
18
(15)
12
(10)
Convenience
in use
a) SBI
78
(65)
42
(35)
- - -
b) ICICI
Bank
72
(60)
30
(25)
12
(10)
6
(5)
-
c) HDFC
Bank
90
(75)
30
(25)
- - -
Cost
a) SBI
42
(35)
48
(40)
24
(20)
6
(5)
-
b) ICICI
Bank
66
(55)
42
(35)
12
(10)
- -
c) HDFC
Bank
84
(70)
24
(20)
12
(10)
- -
Table-5 envisages the frequency of the respective
importance of the various factors for choosing
ATM in the three banks.
Among all the factors affecting example of
others is one, which is the clear indicator of the
customer satisfaction. People will purchase ATM
of a particular bank on the basis of other’s example
if customers using it previously are satisfed.
Table-.1
Example of
others
V.
Imp
Imp Neutral
Un
Imp
V. Un
Imp
a) SBI 5% 20% 35% 20% 20%
b) ICICI
Bank
5% 30% 40% 15% 10%
c) HDFC
Bank
10% 35% 30% 15% 10%
Table-5.1 reveals that performance of HDFC is
better as compared with SBI and ICICI. In case
of HDFC 45% people are regarding it important
while this percentage is 35% & 25% in case of
ICICI & SBI respectively.
2. The purpose for which ATM is most
often used
ATM does not mean the plastic card and PIN
(Personal Identifcation Number) but the services
for which you can use it are the most important
part. These services are cash/cheque deposit, fast
cash withdrawal, view account balances & mini
statements and request a chequebook or account
statement.
Table-6
Cash/Cheque
deposit
Very
often
Often Rarely Sometimes Never
a) SBI
6
(5)
30
(25)
30
(25)
-
54
(45)
b) ICICI Bank
36
(30)
36
(30)
12
(10)
6
(5)
30
(25)
c) HDFC Bank
42
(35)
30
(25)
18
(15)
6
(5)
24
(20)
Fast cash
withdrawal
a) SBI
114
(95)
6
(5)
- - -
b) ICICI Bank
120
(100)
- - - -
c) HDFC Bank
108
(90)
-
6
(5)
6
(5)
-
View account
balances
& mini-
statements
a) SBI
48
(40)
24
(20)
24
(20)
12
(10)
12
(10)
b) ICICI Bank
48
(40)
42
(35)
6
(5)
18
(15)
6
(5)
c) HDFC Bank
48
(40)
36
(30)
12
(10)
24
(20)
-
285
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Cash/Cheque
deposit
Very
often
Often Rarely Sometimes Never
Request a
cheque book
or account
statement
a) SBI
6
(5)
30
(25)
12
(10)
12
(10)
60
(50)
b) ICICI Bank
12
(10)
18
(15)
36
(30)
24
(20)
30
(25)
c) HDFC Bank
36
(30)
24
(20)
18
(15)
18
(15)
24
(20)
Table-6 brings out that performance of HDFC
bank is best as far as frequency of using ATM
services is concerned. ICICI & SBI are at the 2
nd
and 3
rd
number respectively. In case of SBI there
are 45% customers who have never used cash
deposit service.
Table-6.1
Customers never using these services
Services
Cash/
Cheque
deposit
Fast cash
withdrawal
View
account
balances
& mini-
statements
Request
a cheque
book or
account
statement
a) SBI 45% - 6% 50%
b ) ICICI
Bank
25% - 3% 25%
c) HDFC
Bank
20% - - 20%
Table-6.1 depicts that the %age of people not
using services is very low in case of HDFC, which
indirectly means services are very good. Second is
ICICI and 3
rd
is SBI.
Table-6.2
Customers using services very often
Services
Cash/
Cheque
deposit
Fast cash
withdrawal
View
account
balances
& mini-
statements
Request
a cheque
book or
account
statement
a) SBI 5% 95% 40% 5%
b) ICICI
Bank
30% 100% 40% 10%
c) HDFC
Bank
35% 90% 40% 30%
Table-6.2 presents that on the basis of usage
rate HDFC is 1
st
, 2
nd
is ICICI and 3
rd
is SBI.
1. Post Purchase Behavior
Post purchase behavior has been analyzed
through two statements. If they are agree with
these statements then their customer satisfaction
level is rated to be high. There are fve degrees
for each statement and they are rated as 5,4,3,2 &
1 accordingly. Post purchase behavior has direct
relation with customer satisfaction level.
Table-7
Post pur-
chase
Behavior
Strongly
Agree
Agree
Unde-
cided
Disagree
Strongly
Disagree
Continue
to use this
ATM in
future
a) SBI
36
(30)
78
(65)
-
6
(5)
-
b) ICICI
Bank
36
(30)
84
(70)
- - -
c) HDFC
Bank
48
(40)
60
(50)
12
(10)
- -
Recom-
mend this
ATM to
others
a) SBI
12
(10)
36
(30)
60
(50)
12
(10)
-
b) ICICI
Bank
12
(10)
78
(65)
30
(25)
- -
c) HDFC
Bank
24
(20)
70
(58)
26
(22)
- -
Table-7 depicts the responses of the users
regarding their post purchase behavior after using
ATM.
Table-7.1
Name of the
Bank
Satisfaction
Level
Result as %
of Total
a) SBI 912 76%
b) ICICI
Bank
978 82%
c) HDFC
Bank
994 83%
Table-7.1 envisages the coded results after
giving weightings. The highest rating is of HDFC
with 83%, then ICICI is having 82% and SBI is
third with 76% as for as post purchase behavior is
concerned
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So, if we examine the customer satisfaction in
abstract sense then rating becomes totally different
from material customer satisfaction level. The
reason for this is that MCS level is high in case of
SBI because people are not facing problems which
due to the fact that mostly people are not using
services frequently. Thus, according to abstract
customer satisfaction HDFC is at 1
st
position, 2
nd
is ICICI and 3
rd
is SBI.
Proof Or The Result
We can prove the results of ACS with MCS
also. After considering all the three elements i.e.
fee charged, frequency of the problems faced and
post purchase behavior, they are coded. Customer
satisfaction of the respondents has assumed to be
distributed normally. So, the customer satisfaction
of the respondents for these three variables is
divided into three categories, below average,
average and above average levels. The lower and
the upper limits of the average level have been
calculated on the basis of formula:
The lower limit of average level= M-1s.d.
The upper limit of average level= M-1s.d.
Source: Dr. A.B.Bhatnagar; Measurement &
Evaluation, P. 116-120
The below average, average and above average
levels have been defned as low, medium and high
respectively. The results after using this statistical
method are as under:
Table-8
Customer Satisfaction level regarding ATM
Name of
the Bank
Low
Degree
Medium
Degree
High
degree
a) SBI
18
(15)
66
(55)
36
(30)
b) ICICI
Bank
18
(15)
72
(60)
30
(25)
c) HDFC
Bank
18
(15)
84
(70)
18
(15)
15
55
30
15
60
25
15
70
15
0%
20%
40%
60%
80%
100%
Satisfaction
Level
SBI ICICI
Bank
HDFC
Bank
Name of Bank
Customer Satisfaction
High degree
Medium Degree
Low Degree
Fig.-5
Table-8 & fg.-5 shows clearly that average
satisfaction level is highest in HDFC Bank, second
comes the ICICI Bank and the third is SBI.
F-Test
Further F-test is applied to fnd out whether the
difference in the customer satisfaction level of the
three banks is signifcant or not. On the basis of
the table-8 above
Table-9
Analysis of Variance
Sources
Sum of
Squares
Degree of
Freedom ( v)
Mean
Square
Between
groups
4457.19 2 2228.59
Within
groups
155.39 6 25.89
Calculated value of F = 86.07
Tabulated value of F = 5.14
Hence the calculated value is more than the
tabulated value, the H
0
is rejected. It means
that there is a signifcant difference between the
various banks as far as customer satisfaction level
is concerned.
Conclusion
It is concluded through this paper that material
satisfaction level is highest in SBI, then second is
ICICI Bank and third is HDFC Bank. This is due
to the size of the respective bank and number of
years of its establishment. But according to abstract
287
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
customer satisfaction i.e. in terms of effciency
and performance, HDFC Bank is at 1
st
position, 2
nd
is ICICI Bank and 3
rd
is SBI. The results are also
shown clearly with the help of table and diagram.
Table-9
Customer Satisfaction Level
Name of the Bank
Material
Customer
Satisfaction
Level
Abstract
Customer
Satisfaction
Level
a) SBI 79% 55%
b) ICICI Bank 77% 60%
c) HDFC Bank 73% 70%
79%
77%
73%
55%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
MCS ACS
Customer Satisfaction Level
SBI
ICICI
HDFC
Fig.-6
Table-9 & fg.-6 depicts that material customer
satisfaction level is highest for SBI at 79%, 2
nd
is
ICICI Bank with 77% and 3
rd
is HDFC Bank with
73%. Table also presents that average customer
satisfaction level is highest in HDFC bank with
70%, in ICICI Bank it is 60% and SBI is at third
place with 55%.
References
News updates & Events: ATMindia.com
Log in………….. Tribune
Financial Express
The Economics Times online
RBI Monthly bulletin
Dataquest: IT Giants 07
Express Computers Business Weekly
Banknet India
www.ibef,org
Websites of banks
doc_552810715.pdf
The Indian ATM industry has seen explosive growth in recent times. ATMs represent the single largest investment in the electronic channel services for the Banks.
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Business Intelligence Journal - August, 2009 Vol. 2 No. 2
Business Intelligence Journal August
Impact Of Atm On Customer Satisfaction
(A Comparative Study of SBI, ICICI & HDFC bank)
Sultan Singh, Ms. Komal, (Ph.D.)
Abstract:
This paper presents the impact of ATM on customer satisfaction. This is a comparative study of three
major banks i.e. State Bank of India, ICICI bank and HDFC bank. This paper has been divided into two
sections. First section presents the introduction of ATM, brief history of three Banks compiled through
the literature available in the feld. It also includes the review of the various services provided by the
three banks under study. Second section presents the result obtained on the basis of the data collected
for the three banks. A sample of 360 respondents equally representing each bank has been taken through
questionnaire. Data has also been collected through interview also. Then various statistical tools have been
used accordingly to compile the result.
KEY WORDS: ATM, Customer satisfaction, Fees, Problems, ATM services, Banks.
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
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Introduction
ATM means neither “avoids traveling with
money” nor “any time money,” but certainly
implies both. Slim ATM cards are fast replacing
confounding withdrawal forms as a convenient
way of getting your money from banks. In a way,
they are rewriting the rules of fnancial transaction.
A smart person no longer needs to carry a wallet-
full of paper money on his person. All he needs to
do is fsh out an ATM (automated teller machine)
card, insert it in the slot, punch in a few details and
go home with hard cash.
Automated teller machines (ATMs) were the
frst well-known machines to provide electronic
access to customers. With advent of Automatic
Teller Machines (ATM), banks are able to serve
customers outside the banking hall. ATM is
designed to perform the most important function of
bank. It is operated by plastic card with its special
features. The plastic card is replacing cheque,
personal attendance of the customer, banking
hour’s restrictions and paper based verifcation.
ATMs have made hard cash just seconds away all
throughout the day at every corner of the globe.
ATMs allow you to do a number of banking
functions – such as withdrawing cash from
one’s account, making balance inquiries and
transferring money from one account to another
– using a plastic, magnetic-strip card and personal
identifcation number issued by the fnancial
institution.
The Indian ATM industry has seen explosive
growth in recent times. ATMs represent the single
largest investment in the electronic channel
services for the Banks. In India, HSBC set the
trend and set up the frst ATM machine here in
1987. Since then, they have become a common
sight in many of our metros. Automated Teller
Machines (ATMs) have gained prominence as a
delivery channel for banking transactions in India.
Banks have been deploying ATMs to increase their
reach. While ATMs facilitate a variety of banking
transactions for customers, their main utility has
been for cash withdrawal and balance enquiry. As
at the end of October 2007, the number of ATMs
deployed in India was 31,078. According to some
estimates the total cash movement through ATMs
across India was around Rs. 70,000 crore in FY
06. Clearly, industry watchers forecast a bright
future for ATMs in India. While the ATM is a
great service for customers, for the banks it means
immense savings on the cost of operations. While
a typical cash transaction carried out in a banks
branch premise would cost Rs 40 that in an ATM
will only cost Rs18translating into a cost saving of
Rs 22 per transaction.
ATM Networks
The ATMs of a bank are connected to the
accounting platform of the bank through ATM
switches. Inter-bank ATM networks are created
by setting up apex level switches to communicate
between the ATM switches of different banks.
The inter-bank ATM networks facilitate the use
of ATM cards of one bank at the ATM(s) of other
banks for basic services like cash withdrawal and
balance enquiry. Banks owning the ATMs charge a
fee for providing the ATM facility to the customers
of other banks. The ATM deploying bank from the
card issuing banks recovers this fee referred to as
‘interchange fee’. However the interchange fee is
not fxed across banks and depends on the terms of
bilateral / multilateral arrangements. Banks with
larger ATM network treat interchange fee as an
important stream of revenue.
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Business Intelligence Journal - August, 2009 Vol. 2 No. 2
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Inter-connectivity of ATM Networks for
enhanced access
Inter-connectivity of ATM Networks provides
access to the customers to use any ATM in the
country irrespective of the bank with which the
customer is banking. There are a number of ATM
network switches such as CashTree, BANCS,
Cashnet Mitr and National Financial Switch
(NFS). In addition, most ATM switches are also
linked to VISA or MasterCard gateways.
Charges levied by banks
REVISED FEE STRUCTURE FOR ATMs
Service Charges
For use of own
ATMs for
any purpose
Free (with immediate effect)
For use of other
bank ATMs
for balance
enquiries
Free (with immediate effect)
For use of other
bank ATMs
for cash with-
drawals
* No bank shall increase the charges prevailing
as on
December 23, 2007 (i.e. the date of release of
Approach Paper on RBI website)
* Banks which are charging more than Rs.20
per transaction shall reduce the charges to a
maximum of Rs.20 per transaction by 31-Mar-
08
* Free - with effect from April 1, 2009.
Providing relief to millions of users, the RBI
has also said from April 1, 2009, customers using
the inter-bank ATMs (ATMs of other banks) for
cash withdrawals or balance enquiries will not be
charged any fee. As of now, customers have to
pay Rs 50 as annual charges for using the ATM
facility of their bank, while charges ranging from
Rs 20-Rs 50 per transaction are levied for the
inter-bank ATM transactions. Customers are also
paying anything between Rs 10- Rs 20 for making
balance enquiries through inter bank ATMs.
Brief History Of The Banks
The State Bank of India (SBI) is the oldest
and largest bank in the country. Its origins go
back to the frst decade of the 19th century, when
the Bank of Calcutta was established on 2 June
1806. The bank got its present name after an Act
of Parliament in May 1955 and the State Bank
of India was constituted on 1 July 1955. Today,
SBI has a phenomenal 9,559 branches and its
ATM network is spread across 6,473 of its own
locations& total 8,000ATMs including of those of
its associate banks.
State Bank of India is a successor to Imperial •
Bank of India, which was established in
1921.
The bank came into being on 1.7.1955 through •
the State Bank of India Act, 1955.
States of India joined the State Bank Group •
as subsidiaries under the State Bank of India
(Subsidiaries Banks) Act, 1959.
State Bank of India has the following seven •
Associate Banks (Abs) with controlling
interest ranging from 75% to 100%.
State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of Indore (SBIr)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)
ICICI Bank India is the largest private sector
bank. Its banking products and fnancial services
are some of the superior ones. The reach and
market of ICICI Bank is unmatched in India as yet.
It offers a countrywide network of 1,000 branches
and 3,680 ATM’s reaching out to your doorsteps.
Founded by the Government of India in •
the 1960’s, it was one of the three fnancial
institutions set up to fnance large industrial
projects
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S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Earlier known as Industrial Credit and •
Investment Corporation of India, it did not
entertain retail customers and was thus not a
bank in the literal sense.
It was in the 1990’s that a subsidiary was set •
up in the name of ICICI Bank to take up retail
banking services including deposits, credit
cards, loans etc.
In 2002, the ICICI Bank was merged back •
with the ICICI and the result was the ICICI
Bank Limited operational now.
The Housing Development Finance
Corporation (HDFC) Bank is one of the frst banks
in India to offer its customers the bill pay facility.
HDFC Bank is also a leader in online purchase
(using the HDFC Bank DirectPay product). The
bank also offers its customers a free personalized
payable-at-par chequebook and services like real
time gross settlement and national electronic fund
transfer.
HDFC Bank was among the frst to receive •
an ‘in principle’ approval from the RBI to set
up a bank in the private sector as part of the
liberalization of the Indian banking industry
in 1994.
The bank was incorporated in August 1994. •
The bank has 1,148branches and 1,647ATMs •
network spread across the country.
Review Of Literature
Agnihotri Peeyush (2001) in his paper ‘ “ IT
way of getting cash” explained the working of
ATM, ATM penetration per million persons in
Asian countries and the system of security –how it
works and also the frauds of ATM.
Simhan Raja (2003) in his article, “Shared ATM
networks gain favour” explained the importance
of shared network of ATM in Indian banks.
Puri and Kamath (2004) in their article, “Indian
Banks: Bigger, Better & Remote Controlled”
explained that banks in India have traditionally
claimed the strength of their networks based on
the number of branches. The logic was that the
increase in branch network corresponds to more
transactions, more business and therefore more
profts. Not unlike the rest of Asia, where branch
rationalization frst started in Japan and then
spread across the continent, this logic is steadily
getting reversed in India.
Kaul Urvashi (2007) in his article, “ATM: The
Power of Cash” explained the importance and
benefts of ATM, the players in the Indian market
and presented various satistical data concerning
the growth of ATM.
Manager FSDNCR Corporation India Pvt.
Ltd. (2008) in his article, “ATMs: Changing
Fundamentals” stressed that he Indian ATM
industry has seen explosive growth in recent times
and Banks have committed to substantial capital
outlays on ATM deployment, recognizing the
signifcance of the 3 Ms – Maintenance, Monitoring
and Management – of the ATMs to make the self
service channel a reliable and proftable one.
Research Methodology And Data
Base
The present study is of analytical and
exploratory nature. Accordingly, the use has been
made of primary as well as secondary data. The
secondary data have been collected mainly from
RBI monthly bulletins, Financial Express political
weekly, various newspapers and other literature
available in the feld. To know the problems of
ATM structured questionnaires have been used
to collect the data from customers using ATM
services. To analyze the data, various statistical
techniques such as average, std. deviation and
normal distribution have been used as per the
requirement of the data. F test has also been used
to analyze the variances.
Objectives Of The Study
The paper aims to examine the scenario of ATM
in three major banks. In this broader framework, an
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Business Intelligence Journal - August, 2009 Vol. 2 No. 2
Business Intelligence Journal August
attempt is made to achieve the following specifc
objectives:
To analyze the present ATM facilities 1.
provided by SBI, ICICI & HDFC Bank.
To examine the factors affecting the choice 2.
of ATM.
To examine the impact of ATM on customer 3.
satisfaction by appraising the problems faced
by the customers.
To analyze the post purchase behavior of 4.
customers regarding the different banks
under study.
Hypothesis
There is no signifcant difference in ATM 1.
facilities provided by SBI, ICICI & HDFC
Bank
There is no signifcant difference in the 2.
factors affecting the choice of ATM in SBI,
ICICI & HDFC Bank.
There is no signifcant difference in the 3.
impact of ATM on customer satisfaction in
SBI, ICICI & HDFC Bank.
There is no signifcant difference in the post 4.
purchase behavior of customers in SBI,
ICICI & HDFC Bank.
Data Collection
Primary data has been collected through
questionnaire. A sample size of 360 respondents
has been taken including 120 for each bank i.e. SBI,
ICICI & HDFC bank. A personal visit has been
made to these banks to know about the branches &
ATM facilities provided by these banks.
Data Anaysis
281
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
The present paper entitled “Impact of ATM
on customer satisfaction” focus that customer
satisfaction is one of the major factors measuring
the performance of the banks. This paper examines
the customer satisfaction level in the three banks
under study with special reference to problems
faced, responses about the fee charged and post
purchase behavior of the consumers after using
ATM. The paper also examines the relationship
between various ATM facilities, factors affecting
the choice of ATM and its interplay with customer
satisfaction.
The customer satisfaction level has been
analyzed in two terms i.e. material customer
satisfaction (MCS) level and abstract customer
satisfaction (ACS) level. Customer satisfaction
in material sense denotes the aggregate position
of the banks in terms of fee charged, frequency
with which problems are faced and post purchase
behavior of the customers. In abstract sense,
customer satisfaction level denotes the position of
the banks in terms of post purchase behavior, the
effciency of facilities provided and the example
of others using the ATM of the same bank.
Material Customer Satisfaction
Level (MCS)
Material customer satisfaction level has been
examined on the basis of three variables i.e.
reasonability of the fee charged, frequency with
which problems are faced and the post purchase
behavior of the customers.
1. Fee Charged
Fee charged by the banks is one of the variables
taken for checking customer satisfaction level. If
customer feels that the fee charged by the bank is
reasonable then he is satisfed and vice-versa. Five
degrees of reasonability have been taken and they
are coded as 5, 4, 3, 2, &1. There is direct relation
between fee charged and customer satisfaction.
Table-1
Reasonability of fee charged
Name
of the
Bank
Highly
Reason-
able
Rea-
son-
able
Can’t
say
Unrea-
sonable
Highly
Unrea-
sonable
a) SBI 12 66 18 12 12
b)
ICICI
Bank
- 36 66 18 -
c)
HDFC
Bank
12 24 24 48 12
Table-1.1
Satisfaction level regarding the fees charged
Name of the Bank Satisfaction Level
a) SBI 69%
b) ICICI Bank 63%
c) HDFC Bank 56%
satisfaction level for fee charged
0%
10%
20%
30%
40%
50%
60%
70%
80%
Satisfaction Level
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-1
Table-1 shows the responses number of per
person regarding the fee reasonability. Table-1.1
& fg.-1 shows the coded results in percentage
term.
2. Problems Faced
Second parameter for measuring MCS level
is problems faced by the consumers while using
ATM of a particular bank. If consumers are facing
problems more frequently, customer satisfaction
level will be less and vice-versa. There is indirect
relation between the problems faced and the
customer satisfaction. Three degrees namely
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Business Intelligence Journal - August, 2009 Vol. 2 No. 2
Business Intelligence Journal August
often, rarely and never have been taken and they
have rated as 3, 2, & 1 respectively.
Table-2
Frequency of problems faced
Problems Often Rarely Never
Card gets blocked
a) SBI 24 36 60
b) ICICI Bank - 66 54
c) HDFC Bank 12 48 60
Machine out of cash
a) SBI 42 48 30
b) ICICI Bank 60 42 18
c) HDFC Bank 42 72 6
No printing of statement
a) SBI 30 24 66
b) ICICI Bank 36 42 42
c) HDFC Bank 60 42 18
Machine out of order
a) SBI 36 48 36
b) ICICI Bank 42 48 30
c) HDFC Bank 48 66 6
Old notes
a) SBI 24 30 66
b) ICICI Bank 24 36 60
c) HDFC Bank 42 54 24
Wrong amount of statement
a) SBI - 24 96
b) ICICI Bank - 24 96
c) HDFC Bank - 42 78
Poor visibility of statement
a) SBI 6 24 90
b) ICICI Bank 30 36 54
c) HDFC Bank 6 60 54
Reduction in balance without
cash payment
a) SBI - 18 102
b) ICICI Bank 6 30 84
c) HDFC Bank 6 48 66
If any other, please specify
a) SBI - 6 114
b) ICICI Bank - 6 114
c) HDFC Bank - 6 114
Table-2 exhibits the frequency of the problems
faced by the customer in the three banks.
Table-2.1
Satisfaction level regarding the problems
Name of the Bank Satisfaction Level
a) SBI 82%
b) ICICI Bank 78%
c) HDFC Bank 73%
Satisfaction level for Problems
82%
78%
73%
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-2
Table-2.1 & fg.-2 reveals the coded results.
Coding for the three degrees of various problems is
3, 2 & 1 respectively. As exhibited by the table the
customer satisfaction level for problems is highest
in SBI i.e. 82%, and ICICI & HDFC are on number
two and three with 78% and 73% respectively. It
means people are not facing problems more often
in SBI.
3. Post Purchase Behavior
Post purchase behavior has been analyzed
through two statements. If they are agreeing with
these statements then their customer satisfaction
level is rated to be high. There are fve degrees
for each statement and they are rated as 5,4,3,2 &
1 accordingly. Post purchase behavior has direct
relation with customer satisfaction level.
Table-3
Post purchase
Behavior
Strongly
Agree
Agree
Unde-
cided
Dis-
agree
Strongly
Disagree
Continue to
use this
ATM in
future
a) SBI 36 78 - 6 -
b) ICICI
Bank
36 84 - - -
c) HDFC
Bank
48 60 12 - -
Recommend
this
ATM to
others
a) SBI 12 36 60 12 -
b) ICICI
Bank
12 78 30 - -
c) HDFC
Bank
24 70 26 - -
283
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Table-3 depicts the responses of the users
regarding their post purchase behavior after using
ATM.
Table-3.1
Name of the
Bank
Satisfaction
Level
Result as % of
Total
a) SBI 912 76%
b) ICICI Bank 978 82%
c) HDFC Bank 994 83%
Post Purchase Behavior
76%
82%
83%
a) SBI
b) ICICI Bank
c) HDFC Bank
Fig.-3
Table 3.1 and fgure 3 envisages the coded
results after giving weightings. The highest rating
is of HDFC with 83%, then ICICI is having 82%
and SBI is third with 76% as for as post purchase
behavior is concerned.
Overall Material Customer Satisfaction
Level
After considering all the elements of customer
satisfaction they are combined together to
fnd out the overall customer satisfaction level
in materialistic terms. The overall customer
satisfaction level is the combination of three
parameters i.e. fee charged, frequency of the
problems faced and the post purchase behavior.
Table-4
Name of
the Bank
Fee
Charged
Prob-
lems
Faced
Post Pur-
chase Be-
havior
Total
% of
total
marks
a) SBI 414 2658 912 3984 79%
Name of
the Bank
Fee
Charged
Prob-
lems
Faced
Post Pur-
chase Be-
havior
Total
% of
total
marks
b) ICICI
Bank
378 2514 978 3870 77%
c) HDFC
Bank
336 2370 994 3700 73%
79%
77%
73%
70%
71%
72%
73%
74%
75%
76%
77%
78%
79%
a) SBI b) ICICI Bank c) HDFC Bank
Fig.-4
Table-4 & fg.-4 shows clearly that in SBI
material satisfaction level is highest, 2nd is ICICI
and 3
rd
is HDFC.
So, material customer satisfaction is highest
in SBI, then ICICI and last is HDFC among the
three banks. This result is also supported by the
secondary data. For example, according to the
Outlook Best Bank Award, which was given in
Nov. 2007, SBI is the 1
st
largest bank in India,
ICICI is the 2
nd
largest bank and HDFC is the 3
rd
largest bank in India.
Abstract Customer Satisfaction
Level (ACS)
Abstract customer satisfaction level has been
examined through the deep study of the various
parameters of customer satisfaction. Three
parameters have been chosen for this purpose i.e.
factors affecting choice of ATM, the purpose for
which ATM is often used and the problems faced
while using ATM.
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Business Intelligence Journal - August, 2009 Vol. 2 No. 2
Business Intelligence Journal August
1. Factors affecting choice of ATM
While choosing ATM of a particular bank
customer takes care of some things.
They are known as factors affecting the choice
of ATM.
Table-5
Trust and
security
V. Imp Imp Neutral
Un
Imp
V. Un
Imp
a) SBI
114
(95)
6
(5)
- - -
b) ICICI
Bank
120
(100)
- - - -
c) HDFC
Bank
108
(90)
6
(5)
6
(5)
- -
Speed
a) SBI
66
(55)
54
(45)
- - -
b) ICICI
Bank
60
(50)
48
(40)
6
(5)
6
(5)
-
c) HDFC
Bank
36
(30)
72
(60)
6
(5)
6
(5)
-
Example of
others
a) SBI
6
(5)
24
(20)
42
(35)
24
(20)
24
(20)
b) ICICI
Bank
6
(5)
36
(30)
48
(40)
18
(15)
12
(10)
c) HDFC
Bank
12
(10)
42
(35)
36
(30)
18
(15)
12
(10)
Convenience
in use
a) SBI
78
(65)
42
(35)
- - -
b) ICICI
Bank
72
(60)
30
(25)
12
(10)
6
(5)
-
c) HDFC
Bank
90
(75)
30
(25)
- - -
Cost
a) SBI
42
(35)
48
(40)
24
(20)
6
(5)
-
b) ICICI
Bank
66
(55)
42
(35)
12
(10)
- -
c) HDFC
Bank
84
(70)
24
(20)
12
(10)
- -
Table-5 envisages the frequency of the respective
importance of the various factors for choosing
ATM in the three banks.
Among all the factors affecting example of
others is one, which is the clear indicator of the
customer satisfaction. People will purchase ATM
of a particular bank on the basis of other’s example
if customers using it previously are satisfed.
Table-.1
Example of
others
V.
Imp
Imp Neutral
Un
Imp
V. Un
Imp
a) SBI 5% 20% 35% 20% 20%
b) ICICI
Bank
5% 30% 40% 15% 10%
c) HDFC
Bank
10% 35% 30% 15% 10%
Table-5.1 reveals that performance of HDFC is
better as compared with SBI and ICICI. In case
of HDFC 45% people are regarding it important
while this percentage is 35% & 25% in case of
ICICI & SBI respectively.
2. The purpose for which ATM is most
often used
ATM does not mean the plastic card and PIN
(Personal Identifcation Number) but the services
for which you can use it are the most important
part. These services are cash/cheque deposit, fast
cash withdrawal, view account balances & mini
statements and request a chequebook or account
statement.
Table-6
Cash/Cheque
deposit
Very
often
Often Rarely Sometimes Never
a) SBI
6
(5)
30
(25)
30
(25)
-
54
(45)
b) ICICI Bank
36
(30)
36
(30)
12
(10)
6
(5)
30
(25)
c) HDFC Bank
42
(35)
30
(25)
18
(15)
6
(5)
24
(20)
Fast cash
withdrawal
a) SBI
114
(95)
6
(5)
- - -
b) ICICI Bank
120
(100)
- - - -
c) HDFC Bank
108
(90)
-
6
(5)
6
(5)
-
View account
balances
& mini-
statements
a) SBI
48
(40)
24
(20)
24
(20)
12
(10)
12
(10)
b) ICICI Bank
48
(40)
42
(35)
6
(5)
18
(15)
6
(5)
c) HDFC Bank
48
(40)
36
(30)
12
(10)
24
(20)
-
285
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
Cash/Cheque
deposit
Very
often
Often Rarely Sometimes Never
Request a
cheque book
or account
statement
a) SBI
6
(5)
30
(25)
12
(10)
12
(10)
60
(50)
b) ICICI Bank
12
(10)
18
(15)
36
(30)
24
(20)
30
(25)
c) HDFC Bank
36
(30)
24
(20)
18
(15)
18
(15)
24
(20)
Table-6 brings out that performance of HDFC
bank is best as far as frequency of using ATM
services is concerned. ICICI & SBI are at the 2
nd
and 3
rd
number respectively. In case of SBI there
are 45% customers who have never used cash
deposit service.
Table-6.1
Customers never using these services
Services
Cash/
Cheque
deposit
Fast cash
withdrawal
View
account
balances
& mini-
statements
Request
a cheque
book or
account
statement
a) SBI 45% - 6% 50%
b ) ICICI
Bank
25% - 3% 25%
c) HDFC
Bank
20% - - 20%
Table-6.1 depicts that the %age of people not
using services is very low in case of HDFC, which
indirectly means services are very good. Second is
ICICI and 3
rd
is SBI.
Table-6.2
Customers using services very often
Services
Cash/
Cheque
deposit
Fast cash
withdrawal
View
account
balances
& mini-
statements
Request
a cheque
book or
account
statement
a) SBI 5% 95% 40% 5%
b) ICICI
Bank
30% 100% 40% 10%
c) HDFC
Bank
35% 90% 40% 30%
Table-6.2 presents that on the basis of usage
rate HDFC is 1
st
, 2
nd
is ICICI and 3
rd
is SBI.
1. Post Purchase Behavior
Post purchase behavior has been analyzed
through two statements. If they are agree with
these statements then their customer satisfaction
level is rated to be high. There are fve degrees
for each statement and they are rated as 5,4,3,2 &
1 accordingly. Post purchase behavior has direct
relation with customer satisfaction level.
Table-7
Post pur-
chase
Behavior
Strongly
Agree
Agree
Unde-
cided
Disagree
Strongly
Disagree
Continue
to use this
ATM in
future
a) SBI
36
(30)
78
(65)
-
6
(5)
-
b) ICICI
Bank
36
(30)
84
(70)
- - -
c) HDFC
Bank
48
(40)
60
(50)
12
(10)
- -
Recom-
mend this
ATM to
others
a) SBI
12
(10)
36
(30)
60
(50)
12
(10)
-
b) ICICI
Bank
12
(10)
78
(65)
30
(25)
- -
c) HDFC
Bank
24
(20)
70
(58)
26
(22)
- -
Table-7 depicts the responses of the users
regarding their post purchase behavior after using
ATM.
Table-7.1
Name of the
Bank
Satisfaction
Level
Result as %
of Total
a) SBI 912 76%
b) ICICI
Bank
978 82%
c) HDFC
Bank
994 83%
Table-7.1 envisages the coded results after
giving weightings. The highest rating is of HDFC
with 83%, then ICICI is having 82% and SBI is
third with 76% as for as post purchase behavior is
concerned
286
Business Intelligence Journal - August, 2009 Vol. 2 No. 2
Business Intelligence Journal August
So, if we examine the customer satisfaction in
abstract sense then rating becomes totally different
from material customer satisfaction level. The
reason for this is that MCS level is high in case of
SBI because people are not facing problems which
due to the fact that mostly people are not using
services frequently. Thus, according to abstract
customer satisfaction HDFC is at 1
st
position, 2
nd
is ICICI and 3
rd
is SBI.
Proof Or The Result
We can prove the results of ACS with MCS
also. After considering all the three elements i.e.
fee charged, frequency of the problems faced and
post purchase behavior, they are coded. Customer
satisfaction of the respondents has assumed to be
distributed normally. So, the customer satisfaction
of the respondents for these three variables is
divided into three categories, below average,
average and above average levels. The lower and
the upper limits of the average level have been
calculated on the basis of formula:
The lower limit of average level= M-1s.d.
The upper limit of average level= M-1s.d.
Source: Dr. A.B.Bhatnagar; Measurement &
Evaluation, P. 116-120
The below average, average and above average
levels have been defned as low, medium and high
respectively. The results after using this statistical
method are as under:
Table-8
Customer Satisfaction level regarding ATM
Name of
the Bank
Low
Degree
Medium
Degree
High
degree
a) SBI
18
(15)
66
(55)
36
(30)
b) ICICI
Bank
18
(15)
72
(60)
30
(25)
c) HDFC
Bank
18
(15)
84
(70)
18
(15)
15
55
30
15
60
25
15
70
15
0%
20%
40%
60%
80%
100%
Satisfaction
Level
SBI ICICI
Bank
HDFC
Bank
Name of Bank
Customer Satisfaction
High degree
Medium Degree
Low Degree
Fig.-5
Table-8 & fg.-5 shows clearly that average
satisfaction level is highest in HDFC Bank, second
comes the ICICI Bank and the third is SBI.
F-Test
Further F-test is applied to fnd out whether the
difference in the customer satisfaction level of the
three banks is signifcant or not. On the basis of
the table-8 above
Table-9
Analysis of Variance
Sources
Sum of
Squares
Degree of
Freedom ( v)
Mean
Square
Between
groups
4457.19 2 2228.59
Within
groups
155.39 6 25.89
Calculated value of F = 86.07
Tabulated value of F = 5.14
Hence the calculated value is more than the
tabulated value, the H
0
is rejected. It means
that there is a signifcant difference between the
various banks as far as customer satisfaction level
is concerned.
Conclusion
It is concluded through this paper that material
satisfaction level is highest in SBI, then second is
ICICI Bank and third is HDFC Bank. This is due
to the size of the respective bank and number of
years of its establishment. But according to abstract
287
S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction
2009 Sultan Singh, Ms. Komal
customer satisfaction i.e. in terms of effciency
and performance, HDFC Bank is at 1
st
position, 2
nd
is ICICI Bank and 3
rd
is SBI. The results are also
shown clearly with the help of table and diagram.
Table-9
Customer Satisfaction Level
Name of the Bank
Material
Customer
Satisfaction
Level
Abstract
Customer
Satisfaction
Level
a) SBI 79% 55%
b) ICICI Bank 77% 60%
c) HDFC Bank 73% 70%
79%
77%
73%
55%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
MCS ACS
Customer Satisfaction Level
SBI
ICICI
HDFC
Fig.-6
Table-9 & fg.-6 depicts that material customer
satisfaction level is highest for SBI at 79%, 2
nd
is
ICICI Bank with 77% and 3
rd
is HDFC Bank with
73%. Table also presents that average customer
satisfaction level is highest in HDFC bank with
70%, in ICICI Bank it is 60% and SBI is at third
place with 55%.
References
News updates & Events: ATMindia.com
Log in………….. Tribune
Financial Express
The Economics Times online
RBI Monthly bulletin
Dataquest: IT Giants 07
Express Computers Business Weekly
Banknet India
www.ibef,org
Websites of banks
doc_552810715.pdf