The Effect Of ATM On The Performance Of Nigeria Small and Medium Enterprises (SMEs)

The Effect Of ATM On The Performance Of Nigeria Small and Medium Enterprises (SMEs)
Abstract
This research study was carried out to assess the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises. It further offered a controversial topic that ATM holders could engage in to further make sense of the different negative and positive effects of ATM use that exist, and how these directly influenced responses to gendered phenomena. It was therefore elicited significant constructions of results and hence was used as a vehicle to further add insight into the constructed nature of awareness about the customer services offered by ATM points to SMEs performance, effectiveness of ATM service and the relationships between ATM services and SMEs performance. This was achieved through the use of a sample of (40) ATM users of SMEs in Ado-Ekiti, Ekiti State, Nigeria. Through this method the information the impact of the use of ATM system of banking on SMEs performance. Data was analyzed using SPSS (statistical package for social sciences). The results were understood as largely; almost three quarters of the respondents rated the services offered by an ATM to be effective with withdrawal as the main service offered by ATM, followed by checking of balances, while the statement/mini statement of account came third, and Cash or cheque deposit came last. The finding further depicts that more than half of the respondents were satisfied by the services offered by the ATM. This study thus shed light on the awareness of the ATM services to nature evident results in SMEs performance in society and as a view point for banking industry by showing how quality services offered by ATM service points are essential and its relationship to SMEs performance.
Table of Content
Chapter One
1.0 Introduction
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Objectives of the Study
- 1.4 Research Question
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organisation of the Study
Chapter Two
2.0 Literature Review
- 2.1 Conceptual Review
- 2.2 Conceptual Clarifications
- 2.2.1 Automated Teller Machine (ATM)
- 2.2.2 Mobile Banking
- 2.2.3 Electronic Card (Use of POS)
- 2.2.4 E-Banking Implementation
- 2.2.5 Awareness of Electronic Banking
- 2.2.6 Service Availability
- 2.2.5 Customer Satisfaction
- 2.3 History of Automation
- 2.3.1 Evolution of Automated Teller Machine
- 2.3.2 Operation of Automated Teller Machine
- 2.3.3 Effectiveness of Automated Teller Machine
- 2.4 Competition, Automation in the Business Enterprises
- 2.5 Strategies Adopted by Business Enterprises
- 2.6 Weaknesses of Automation
- 2.7 Theoretical Review
- 2.7.1 Disconfirmation Theory
- 2.8 Empirical Review
Chapter Three
3.0 Research Methodology
- 3.1 Research Design
- 3.2 Study Area
- 3.3 Target Population
- 3.4 Sample and Sampling Technique
- 3.5 Research Instrument
- 3.6 Validity of the Instrument
- 3.7 Reliability of the Instrument
- 3.8 Data Analysis
Chapter Four
4.0 Results and Discussion
- 4.1 Results
- 4.2 Discussion
Chapter Five
5.0 Conclusion and Recommendation
- 5.1 Conclusion
- 5.2 Recommendation
- References
- Appendix
Chapter One
1.0 Introduction
1.1 Background of the Study
The system of electronic arrangement of money from a person’s account to other person(s) violating the use of cheque or cash referred to electronic banking (Bahram, Zeinab & Hussein, 2013). Electronic banking encapsulates several banking activities that SMEs offered and these activities are performed electronically (Hunjra, Ali & Anwar, 2012). Prior to the introduction of modern banking system, SMEs operate manually leading to delay in the arrangement of financial negotiations. It has to do with manual positing of transactions between ledgers and counting of money was made by hand which many times is not accurate and involve time consumption leading to high degree of errors which necessitated SMEs to use analog processors in performing its financial transactions and yet could not record significant improvement in handling bank operations (Okoro, 2014).
The advent of electronic banking brought about a dramatic improvement in bank operations. Information technology communication has brought a significant effect of improving development across counties of the world. Neglecting a maximum usage of ICT, it will be difficult for countries of the world to achieve a speed space of social-economic growth and development (Adeyemi, 2006). The futures of all businesses particularly those who render services to their clients or customers, lies in information technology, in fact, information technology is considered germane in the competitiveness of businesses around the globe and has re-orientate the management of businesses thinking faculty.
The change that e-banking has brought to businesses considered e-banking as a paramount significant player in meeting user anticipations (Areeba, Mudassir, Talha, Shoaib & Adnan, 2016). Customer satisfaction leading to embrace loyal corporate customers can be accomplished by facilitating implementation of electronic banking processes, awareness and adoption of electronic banking as well as delivering high quality services and service availability of electronic banking (Gronroos, 2000 cited in Areeba, Mudassir, Talha, Shoaib & Adnan, 2016). With rest of the world, consumers of SMEs products and services are on the slow pace to electronic banking (Barquin & HV, 2015) and no doubt, to improve corporate customers’ satisfaction of the users of electronic banking formal education, incessant campaign and service availability must be adequately ensured in Nigeria. CBN (2011) opined that the employment of electronic machines and internet services to ease negotiation without having any need to visit the bank or human interaction with a banker is encouraged among business men and women. CBN (2011) and Worku, Tilahun and Tafa (2016) further denoted that the registered technical know-how of e-banking in the mind of electronic banking users brought about effectiveness in activities as a way of reducing cost of operation which significantly related to satisfaction of corporate customers.
Electronic banking is changing the whole banking and non-banking industry through the use of e-banking tools, having effects on staff to customer relationship. However, this aspect cannot be overemphasized and need to be researched thoroughly. According to Adeoti and Oshotimehin (2012), irrespective of the fast-growing rate of e-payment tools adoption in Nigeria, the degree of awareness and adoption of Point of Sale and mobile banking is relatively low which have effect on customers’ satisfaction compared to other electronic payment tool. Causes responsible for the low adoption of point of sale and mobile banking in Nigeria are failure to campaign for usefulness of point of sale and mobile banking application, illiteracy, lack of security on financial information, cost of ownership and adoption due to high cost of acquiring and maintaining internet data, computers, inadequate equipments, unavailability of network services, breach of trust between parties involves, unawareness of effectual point of sale, no lighting facilities, shortage of point of sale in business environs, fear of loss of cash as a result of network interruption (Ayo & Babajide, 2006; Adeoti, 2013, NIBSS, 2015).
Based on existing literature on electronic banking and customers’ satisfaction, the researcher observed that the electronic banking has been studied extensively in banking sector. Prominent scholars (James, 2013; Bahram, Zeinab & Hussein, 2013; Mohammed &Adamu, 2014; Awara & Anyadighibe, 2014; Abubakar, Shagari & Olusegun, 2015; Muhammad, 2015; Tijani & Ilugbemi, 2015; Ugwueze & Nwezeaku, 2016; Babatunde & Salawudeen, 2017) to mention but a few focused attentions on banking sector.
ATMs are placed not only near or inside the premises of SMEs, but also in locations such as shopping centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or any place where large numbers of people may gather. ATM services includes function such as cash withdrawal, balance enquiry, bill payment, cash and cheque deposit, saving and credit account on a 24 hours basis.
According to Patricio and Cunha, (2003) Automated Teller Machines are devices used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank’s central computer by modem. To prevent unauthorized transactions, a personal identification number (PIN) must also be used by the user using a keypad. The computer then permits the ATM to complete the transaction; most machines can dispense cash, accept deposits, transfer funds, and provide information on account balances. SMEs have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access, by extension all SME’s ATM in Nigeria are inter-connected.
Globally, Automated Teller Machines have been adopted and are still being adopted by SMEs. They offer considerable benefits to both SMEs and their depositors. The machines can enable depositors to withdraw cash at more convenient times and places than during banking hours at branches (Musiime and Biyaki, 2010). In addition, by automating services that were previously completed manually, ATMs reduce the costs of servicing some depositors of demand. These potential benefits are multiplied when SMEs share their ATMs, allowing depositor of other SMEs access their account through a bank’s Automated Teller Machine.
Balunywa, (2003) discovered that the adoption of ICT in SMEs has produced largely positive outcomes such as improved customer services, more accurate records, ensuring convenience in business time, prompt and fair attention, and faster services etc. Also, the SMEs’ image is improved creating a more competent market. Work has also been made easier, and more interesting, the competitive edge of SMEs, relationship with customers, and the solution of basic operational and planning problem has been improved.
Further, there is no known study on electronic banking and corporate customers’ satisfaction in Small and Medium Scale Enterprises in Ado Ekiti which necessitated the present study. More so, where electronic banking variables have been employed no known studies have used service availability on corporate performance and profitability.
1.2 Statement of the Problem
The introduction and use of ATM system of banking has received different perceptions. One of the views is that, it may not have really created customer satisfaction for bank clients, and the other is that, it may have. Despite of all the merits of the ATMs, customers still complaint of shortfalls on the use of the system such as; break downs of ATMs, long queues at ATM service points, retention of customers cards, limited knowledge on the use of ATM cards, fraudulent transactions and its operation in just a few languages. The impact of Automated Teller Machine cannot be ignored if meaningful goals and objectives are expected to be achieved (Balunywa, 2003).
Automated teller machine is introduced into the banking system to enhance good services delivery and efficient customer satisfaction. Presently Nigeria problem in automated teller machine is the use of outdated or inappropriate technology and lack of adequate knowledge all experience about the machine being use in another problem facing automated teller machine. Hence, the researcher seeks to assess the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises.
1.3 Objective of the Study
The main objective of the study is to assess the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises. The researcher intends to achieve the following specific objectives;
- To establish the effectiveness of Automated Teller Machine service on performance of Small and Medium Scale Enterprises.
- To establish relationships between Automated Teller Machine services and customer’s satisfaction with Small and Medium Scale Enterprises.
- To determine the customer services offered by Automated Teller Machine in Small and Medium Scale Enterprises.
- To examine the problems of Automated Teller Machine on the performance of Small and Medium Scale Enterprises.
1.4 Research Questions
- What is the effectiveness of Automated Teller Machine service on performance of Small and Medium Scale Enterprises?
- What is the relationship between Automated Teller Machine services and customer’s satisfaction with Small and Medium Scale Enterprises?
- What are the customer services offered by Automated Teller Machine in Small and Medium Scale Enterprises?
- What are the problems of Automated Teller Machine on the performance of Small and Medium Scale Enterprises?
1.5 Research Hypotheses
To aid the completion of the study, the following research hypotheses were formulated by the researcher;
Hypothesis One
- HO1: There is no significant effect of Automated Teller Machine service on performance of Small and Medium Scale Enterprises
- HA1: There is a significant effect of Automated Teller Machine service on performance of Small and Medium Scale Enterprises
1.6 Significance of the Study
This research work provides an insight into the impact of automated teller machine on performance of Small and Medium Scale Enterprises. Therefore, this research work is significant to the extent that it provides exposition to past studies and findings in this subject area. Also, this study will complement the previous study and adds to the body of knowledge in this study area. Such that both past and current studies will provide basis for corporate decision making.
Finally, the study will be significant to future researchers who will want to undergo study on any area related to the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises.
1.7 Scope of the Study
The scope of this study covers the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises. The effect of Automated Teller Machine is the independent variable whereas SMEs performance is the dependent variable. The effectiveness of the Automated Teller Machine services on SMEs performance shall be measured using variables like; reliability, speed and efficiency of Automated Teller Machine services in solving the queuing problems of clients. While customer satisfaction shall be measured by variable like; less or no customer complaints about Automated Teller Machine services offered.
1.8 Limitation of the Study
In the course of the study, there were some factors which limited the study;
a) Availability of Research Material:
The research material available to the researcher is insufficient, thereby limiting the study
b) Time:
The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational Privacy:
Limited Access to the selected SMEs makes it difficult to get all the necessary and required information concerning the activities.
1.9 Operational Definition of Terms
Automated Teller Machine (ATM):
Automated Teller Machine refers to a machine that acts as a bank teller by receiving and issuing money to and from the Automated Teller Machine account holders/ users.
Customer’s Satisfaction:
Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.
Small and Mid-Size Enterprises (SMEs):
Are businesses that maintain revenues, assets or a number of employees below a certain threshold. They outnumber large firms considerably, employ vast numbers of people and are generally entrepreneurial in nature, helping to shape innovation.
Performance:
Comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.
1.10 Organization of Study
The study comprises of 5 chapters. In chapter one, the concepts are introduced and the problem of the study is established with the research objectives and questions. Chapter two presents the literature review while chapter three presents the research methodology. The fourth chapter presents the results and discussion, and the last chapter presents the conclusion and recommendation.
Chapter Five
5.0 Summary, Conclusion and Recommendation
5.1 Summary
The study sought to assess the effect of Automated Teller Machine on the performance of Nigerian Small and Medium Scale Enterprises. In the course of study, the study revealed that there was an equal distribution in the respondents majority of whom were either employed or students. All the respondents held accounts with SMEs in Nigeria, knew about ATM banking and also all of them owned ATM cards.More than a quarter of the respondents identified withdrawal of money to be the major service identified by the ATM, followed by checking of balances on one’s account. Most of the respondents said that the services offered by the ATM were satisfactory or enough. Most of the respondents rated the services of the ATM as effective, the cost of using the ATM was rated cheap and the timing of the ATM was rated effective. More than half of the respondents felt that their money was secure and also most of the respondents said that on average they spent about 0-5 minutes in the queue before accessing the ATM services.
Moreover, the study found that more than three quarters of the respondents said that they experienced problems while using the ATM and the commonest problem identified was network or machine breakdown but the respondents said that they experienced such problems less often. They also said that the bank had taken some precautionary measure to avert the problems and more than three quarters of the respondents said that all their problems had been solved once reported to the bank. Pearson chi square statistic was used to test the hypotheses. It was found out that there was no significant relationship between customer’s satisfaction and the location of the ATMs.
5.2 Conclusion
Poor use and low effectiveness of Automated Teller Machine services leads to problems like congestion inside the SMEs, spending much time in the queues before accessing the Automated Teller Machine services by the users and it also discourages people to open accounts due to such problems as machine breakdown that manifests into poor services offered. From the study it can be realized that in order to improve the effectiveness of the ATM services, all potential barriers to its effectiveness must be considered. An expanded view that takes into account factors that lead to the low or poor effectiveness of the ATMs must be considered.
5.3 Recommendation
Based on the findings of this study, the following recommendations were made;
- All the SMEs in Nigeria must sensitize its customer’s about the availability of the ATM and the different services it offers.
- The ATMs should be located in so many places especially busy places for proximity purposes and for reducing the amount of time spent in the queue before accessing the ATM services.
- The financial institutions should make sure that the cost of using the ATM is kept as minimum as possible and this will encourage more people to use these services and this helps to reduce congestion in the banks.
- Constant and consistent checkups must be done on these ATM machines in order to avoid network or machine break downs and any other possible problems that may inconvenience the users.


The Complete Material Will Be Sent to You in Just 2 Steps
Quick & Simple…
![]()
Make Payment (Through Transfer) of ₦5,000 to the Account Below
![]() | Acc No: 0811003731 |
| Samphina Academy | |
| Current Account |
Or CLICK HERE To Pay With Debit Card
| FOR STUDENTS OUTSIDE NIGERIA | |
| CLICK HERE To Pay With Card ($15) | |
| FOR GHANA STUDENTS (GHS 100) | |
![]() | MTN MoMo |
| 0553978005 | |
| Douglas Osabutey | |
![]()
Send the Following Details on WhatsApp ( 07062590260 ) After Payment
- Payment Details
- TOPIC: The Effect Of ATM On The Performance Of Nigeria Small and Medium Enterprises (SMEs)
The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply
Students Review
List of Related Works
Appraisal Of The Use Of Automated Teller Machine (ATM) In The Banking Industry In Nigeria
Implementation Of Location Based Service Of ATM Centres Using GPS
An Assessment Of The Use Of Automated Teller Machine (ATM) In The Banking Industry In Nigeria
Fingerprint Authentication System For ATM Security Applications
Design And Implementation Of An Automated Teller Machine (A Case Study Of First Bank Plc.)
Customers’ Perception Of ATM Services
Design And Implementation Of An ATM Point Locator Using GPS
Appraisal Of The Use Of Automated Teller Machine (ATM) In The Banking Industry
Impact Of Automated Teller Machine On Bank Customers Satisfaction In Banks
Biometric Authentication Of An Automated Teller Machine Using Finger Print And Password
Design And Implementation Of An Online ATM Card Request And Delivery System With Tracker
Impact Of Automated Teller Machine On Customer Satisfaction In Banks
Design And Implementation Of A Computerized Transaction Receipt Generating System For An ATM Machine
The Automated Teller Machine (ATM) System In The Banking Sector; Problem And Prospects
Stimulating A Voiced Aided ATM System For Blind And Visually Impaired Customers Of Nigeria Banks
An Assessment On The Activities Of Fraudsters Using ATM Pin
Effect Of Automated Teller Machine On The Performance Of Nigerian Banks
Design Of Two-Factor Authentication (Pin And SMS Password) For An Automated Teller Machine (ATM)
Customer Satisfaction And How ATM User’s Perceive ATM Services Within Yola-Metropolis
The Effect Of ATM Technology In Nigeria Banking Industry
The Impact Of Taxation On The Growth Of SMEs In Nigeria (A Case Study Of Slot Systems Limited)
The Impact Of Banking Reforms On Small And Medium Scale Enterprises (SMEs)
The Role Of Bank Of Industry In The Development Of Small And Medium Enterprises (SMEs) In Kaduna
Effect Of Cashless Policy On Small And Medium Business In Nigeria
Small And Medium Scale Business Enterprises And Economic Growth Of Nigeria
Commercial Bank Lending To Small And Medium Scale Enterprises
The Assessment Of Credit Accessibility To Small And Medium Scale Enterprises (SMEs) In Nigeria
The Relevance Of Account In The Growth And Survival Of SMEs In Nigeria
Financing Of Small And Medium Scale Enterprises In Nigeria Problems And Prospectives
Impact Of Commercial Banks On Small And Medium Scale Enterprises Development In Nigeria
The Effect Of Planning On The Success Of Small Business Enterprises
Problems And Prospects Of Management Of Medium-Scale Industries
Cash Management In Medium Scale Enterprises
The Role Of Small Scale Enterprises In The Economic Development Of Nigeria
Digital Marketing As A Key Driver Of Sales Improvement Among Small And Medium Scale Enterprises
Banks Financing Of Small And Medium-Scale Enterprises 2000-2007


