An Assessment Of The Use Of Automated Teller Machine (Atm) In The Banking Industry In Nigeria

An Assessment Of The Use Of Automated Teller Machine (Atm) In The Banking Industry In Nigeria

Chapter One

Preface

Background Of The Study

According to( Fabunmi, 2010), the ultramodern society or the entire world has grown to a position that the use of computers in the chain of product is ineluctable. The birth of robotization in the banking assiduity in Nigeria can be linked to the on- going struggle by individual banks for survival and growth. robotization means the use of automatic outfit in place of homemade labour; robotization is also the use of machine for four D’s task where the four D’s daises for Dangerous, delicate, Dirty, and Dull. In Nigeria, Automatic Teller Machine technology is getting more common than it ever was. ATMs appear to be substantially handed by banks in Nigeria( Fasan, 2007). Yet, their wide relinquishment by guests of banks isn’t clear, as it appears that peoples ’ perception of the technology is different, which in turn affects their decision to actually use ATMs or not. ATMs are set up to give 24 hour services to bank guests, who can not anticipate to be suitable to distribute with Relinquishment of Automatic Teller Machines in Nigeria banks in the same period of time( Ugwu, 2008). nonetheless, it’s observed that banks still have numerous guests transacting with tellers within their doors, and ranges are still not a thing of the history inside banks. The patronage of ATMs is also not well defined, and indeed epileptic at best, as occasionally long ranges were observed outside ATMs, while at other times, there are many or no guests. It’s accordingly, important to discover why this is so, because as a technology, ATMs are supposed to make life easier and more effective for the guests of banks. Concerning banks, ATMs ought to help in perfecting a banks ’ development, thus low patronage of

ATMs by their guests could affect the banks ’ profit negatively. thus, there’s a need to study the constructs that could affect the relinquishment of Automatic Teller Machines. Using a popular and extensively used proposition similar as the proposition of prolixity of invention, it’s anticipated from this study that the extent of prolixity of ATM will be determinable with a view to knowing what could be done to help the inhibition girding its use. therefore, it could be reasoned that the benefits of ATM can only accrue to adopters in Nigeria when walls to their prolixity and relinquishment are linked. The DOI proposition was used in an attempt to model the use of ATM in Nigeria, so that the progression of its use could be anticipated and completely provisioned for by banks. Although the operation of the proposition had been tested in former studies there’s a need for it to be applied locally using a lately introduced technology, similar as ATM in Nigeria. The use of the proposition is vital as there’s a demand for further information that could add to being exploration. likewise, there appears to be a dearth of information concerning prolixity studies on ATM in Nigeria using the DOI model. Consequently, this could reveal areas that bear farther exploration, and give answers to heretofore obscure questions concerning ATM relinquishment and prolixity.

Statement Of The Problem

Which came first the funk or the egg? ’ A analogous question can be posed about the influence of technology and the changes taking in the druthers suggested are presumably not as clear- cut as that. In the banking assiduity. “ Are these changes being driven by technology? ”

Or is the propensity for change deduced from request forces? We may noway know the answer, indeed if there’s one, for the druthers suggested are presumably not as clear- cut as that it perhaps for illustration, the changes in the request forces are inextricable entwined what’s important is that technology should be suitable to keep abreast of the request conditions and,

where possible technological development taking place now can anticipate unborn request requirements.

Objects Of The Study

The major ideal of this design is directed towards the achievement of the following

To ameliorate quality of service.

To ameliorate deals effectiveness and profit.

To reduce functional cost.

To ameliorate operation information and help in decision making

To enhance client satisfaction at a profit.

Statement Of Suppositions

H0 The relative advantage of using Automatic Teller Machines doesn’t appreciatively affect the station towards using the technology.

H0 The complexity of the use of Automatic Teller Machines doesn’t appreciatively affect the station towards using the technology.

H0 The comity of Automatic Teller Machines with the adopter’s values doesn’t appreciatively affect the station towards using the technology.

H0 The trialability of Automatic Teller Machines doesn’t appreciatively affect the station toward using the technology.

H0 The observability of Automatic Teller Machines doesn’t appreciatively affect the station towards using the technology.

H0 The station towards Automatic Teller Machines doesn’t appreciatively affect the intention to use the technology.

Exploration Methodology

Some of the conditioning need to be done so as to get the true picture and broad knowledge of robotization of the cloth assiduity in Nigeria; the following styles of data collection were employed

Interviews and compliances with implicit druggies of the system and specialist in the fields related to the system.

Study of colorful handbooks and other services similar as journal, papers and several publications on automated Teller Machine.

To suds the internet for information and papers on automated Teller Machine.

The Research Model

The exploration model espoused in this study depicts what should do given the constructs that have been put forward by Rogers( 1995) concerning the relinquishment of a technology. These constructs ought to affect the intention to use a particular invention which in this case is ATM. therefore, the model indicates that the five constructs relative advantage, complexity, comity, trialability and observability of using ATM would affect the station of the adopter which in turn will affect Olatokun & Igbinedion the intention of the adopter to use an ATM. therefore, all the constructs are inclusively likely to have an effect on the adopter’s station towards ATM which would always affect the adopter’s intention to use it. Intention to use an ATM has direct bearing on whether the machine is actually used or not.

Compass Of The Design

This study tested the attributes of the proposition of prolixity of invention empirically, using Automatic Teller Machines( ATMs) as the target invention. The study was positioned in Ilorin, Kwara State, Nigeria. The population comprised banks guests in Ilorin who used ATMs. The slice frame fashion was applied, and 14 banks that had stationed ATMs were named. Cluster slice was employed to elect repliers for the study. Data collection instrument was a structured questionnaire administered to 600 repliers of which 428 were returned giving71.3 return rate. star Factor Analysis and Multiple Retrogression were the logical ways used. The demographic characteristics of the repliers revealed that utmost of them were scholars and youths. From the factor analysis, it was revealed that the repliers believed in their safety in using ATM; that ATMs were relatively easy to use and fit in with their way of life; that what they observed about ATMs induced them to use it and that ATM was tried out before they use it. The constructs Relative Advantage, Complexity, comity, and Trialability were all set up to have a significant impact on the station towards ATM, which in turn had a significant impact on the Intention to use it. Relative Advantage and comity had nearly the same weight of impact on station; while Observability had the loftiest impact on station. To increase the prolixity of ATMs, it was recommended that banks should insure enhanced salience of ATM to guests ’ needs, lesser comity of ATM to guests banking morals and life, less complex and easy to use system and occasion for adopters to trial with the system before using ATMs.

Literal Background

In Nigeria, a mechanical cash dispenser, arguably an ATM was introduced in 1986 by the defunct Societe Generale Bank. In October 2003 InterSwitch ATM system took off.

ATM services have a history that’s lower than ten times in Nigeria. At first, they were operated as potty services designed for those desirous of exclusive service. Cards were rare and the process for carrying them sinuous. Presently, the use of ATM cards has been extensively promoted. Banks no longer appear to want particular contact with their guests. Some banks have resorted to chastising the client as it were, for not enjoying an ATM card, by debiting the account of such a client for withdrawing below a certain quantum across the counter. Agboola( 2006) reported that although only a bank had an ATM in 1998, by 2004, fourteen of them had acquired the technology. Agboola( 2006) discovered that the relinquishment of ICT in banks has produced largely positive issues similar as bettered client services, more accurate records, icing convenience in business time, prompt and fair attention, and briskly services etc. Also, the banks ’ image is bettered creating a more competent request.

Work has also been made easier, and more intriguing, the competitive edge of banks, relationship with guests, and the result of introductory functional and planning problems has been bettered. Fanawopo( 2006) stated that Nigeria’s disbenefit card deals rose by 93 percent between January 2005 and March 2006 over former times owing to aggressive roll out enterprise by Nigerian banks, powered by Interswitch network. The number of ATM deals through the Interswitch network had increased from, in 2004, to 14, 448, 615 between January 2005 to March 2006. This is a rise of92.6 percent with respect to the former times. further than 800 ATMs have been stationed on the network, while about 2 million cards have been issued by 23 banks as at March 2006.

Association Of The Study

The work in this design is divided into five chapters videlicet

Chapter one gives the preface. It’ll contain a brief overview of the subject matter i.e. robotization in banking assiduity in Nigeria; Background of the study, Statement of the problem, points and objects of the study, Statement of Hypothesis, Research Methodology, Scope of the Project, Organization of the Study.

Chapter two gives the literature review. This includes the brief history of the robotization in the banking assiduity in Nigeria, and description of terms used in the analysis of the Diffusion of Innovation theorem which includes relative advantage, complexity, comity, trialability and Observerbility.

Chapter three deals with the methodology and system analysis.

Chapter four focuses on perpetration of robotization in the cloth assiduity.

Chapter five gives the summary, conclusion and recommendation.