The Use of Automated Teller Machines (ATMs) for Improved Service Delivery: A Case Study of Cavmont Bank Kalingalinga Branch in Lusaka,Zambia

Abstract

Automated Teller Machines (ATMs) are an Information and communication technology’s tools that have increasingly become vital to improving banks’ service delivery in developing countries. This study was therefore conducted as an investigation into the usage of automated teller machines (ATMs) for improved service delivery with focus on Cavmont bank Kalingalinga branch. The objectives of the study were to assess customers’ level of knowledge on the usage of the ATM; to evaluate the user friendliness of the ATM at Cavmont bank Kalingalinga Branch; and to establish the challenges of having one ATM at Cavmont Bank Kalingalinga Branch. It was a case study employing both qualitative and quantitative methods of data collection and analysis. It was found that all the respondents were well aware of the ATM at the Cavmont bank Kalingalinga branch however only 62 percent had used the machine. The percentage of non-use of the ATM was attributed to many other factors including lack of ATM cards, security of the location of the ATM and technical issues such as insufficient funds in the machine especially on weekends.   The majority (51 per cent) of the respondents considered the ATM at Cavmont Kalingalinga branch to be user friendly.  Of the 62 percent of people using the ATM, 53 per cent indicated that having few ATMs in Kalingalinga will result in customer dissatisfaction which may compel them to seek better services from other banks. It was concluded that use of ATMs do indeed improve service delivery although more needs to be done in order to maximise the benefits of this information technology. It was therefore recommended that new account holders should be properly orientated to the operations of the ATM. The starter pack of the client should give step by step guide on how the machine works and how to use it.