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A RESARCH REPORT

On

CUSTOMER SATISFACTION ON ATM SERVICES: A

CASE STUDY OF DENA BANK

At

Submitted to

(Jiwaji University, Gwaior!

"or t#e $artia %u%iment o% t#e award o%

&aster o% 'usiness Administration

())*+))!

Submitted by

(S#i$a Sen-er!

Estd. 2002

INSTITUTE OF INFORMATION TECHNOLOGY & MANAGEMNT

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DECLARATION

T#is is to de0are t#at t#e Resear0# Re$ort #as been

a00om$is#ed by me and bein- submitted in $artia %u%iment o%

re1uirement %or t#e award o% t#e 2e-ree o% &aster o% 'usiness

Administration %rom institute o% 3n%ormation te0#noo-y and

mana-ement a%%iiated to Jiwaji University Gwaior

T#is wor4 #as not been submitted by me anyw#ere ese %or

t#e award o% any de-ree or di$oma5 A sour0es o% in%ormation are

based on my on job trainin- e6$erien0e and ea

Shilpa Senger

MBA-4thSemester

ACKNOWLEDGEMENT / P a - e

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Obje0tive: 555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555;

Proje0t 3ntention: 555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 ;

E&ERGE8CE O" E'A8

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O$en a new a00ount and 0reate a new user5

Servi0e t#e 0#e1ue boo4 issue re1uest5

Servi0e t#e 22 issue re1uest5

"reee un%reee an a00ount5

Objective :

Obje0tive o% t#is $roje0t is to aow t#e 'an4 to e6$ose its %un0tionaity on t#e web,

ma4in- t#eir servi0e avaiabe to t#e user+ 0ustomer ma4e t#em satis%ied5 B#ie t#e0ustomers enjoy o$eratin- t#eir a00ount sittin- in t#eir #omes, t#e 'an4 o%%i0ia, wor4in-

as administration o% t#e system are e6$ose to t#e servi0e areas o% t#e a$$i0ation5 T#is

resear0# $ur$ose is to %ind t#e eve o% 0ustomer satis%a0tion %or AT& servi0es5

Project Intention:

To %ind oo$#oes in AT& servi0es

To deveo$ 0om$uteried system to #ande a ty$es o% transa0tion o00urrin- in t#e

'an45

EMERGENCE OF EBANKING

Com$uter #as eased #uman i%e5 Every day new dimensions o% its utiity are emer-in-5

E+'an4in- is one o% t#e -i%ts to #uman bein-s by 0om$uter te0#noo-y5 Use o% 0om$uters

#ave automated 'an4in- $ro0ess and t#us #as -iven birt# to e+'an4in-+'an4in- is a %ast

s$readin- servi0e t#at aows 0ustomers to use 0om$uter to a00ess a00ount+s$e0i%i0

in%ormation and $ossiby 0ondu0t transa0tions %rom a remote o0ation + su0# as at #ome or

at wor4$a0e5 Use o% internet #as made every t#in- avaiabe at your %in-er ti$5 @ot o%

websites is ready to serve you, just at your mouse 0i045AT& 0ards, 0redit 0ards ,debit

0ards, smart 0ards ,a t#ese #ave eased #uman i%e u$ to su0# a e6tent t#at today i%e

wit#out t#ese seems to be #ard, %u o% misery5

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DEFINATION OF E BANKING:

#Ele$tr%ni$ Ban&ing %r e-Ban&ing is the pr%$ess '( )hi$h a $*st%mer $an per+%rm

Ban&ing transa$ti%ns ele$tr%ni$all( )ith%*t ph(si$all( ,isiting the Ban&s %r +inan$ial

instit*ti%ns5E+'an4in- or onine 'an4in- is a $ower%u Ivaue addedI too to attra0t and retain new

0ustomers w#ie it #e$s to eiminate 0osty $a$er #andin- and teer intera0tions in an

in0reasin-y 0om$etitive 'an4in- environment5 Trust %a0tor vaues #i-# in im$ementin-

su0# 4ind o% servi0e and so #i-#er $riority is -iven to t#e se0urity in%rastru0ture5

CHARECTERISTIC OF E BANKING:

S$eed o% te0#noo-i0a 0#an-e,

C#an-in- 0ustomer e6$e0tations,

3n0reased visibiity o% $ubi0y a00essibe networ4s (e5-5, t#e 3nternet!,

@ess %a0e+to+%a0e intera0tion wit# %inan0ia institution 0ustomers,

8eed to inte-rate e+'an4in- wit# t#e institutions e-a0y 0om$uter systems,

2e$enden0e on t#ird $arties %or ne0essary te0#ni0a e6$ertise, and

Proi%eration o% t#reats and vunerabiities in $ubi0y a00essibe networ4s5

COMMON E BANKING SER!ICE

Retail Ser,i$es

A00ount mana-ement

'i $ayment and $resentment

8ew a00ount o$enin-

3nvestment'ro4era-e servi0es

@oan a$$i0ation and a$$rova

A00ount a--re-ation

Wh%lesale Ser,i$es

A00ount mana-ement

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Cas# mana-ement

Sma business oan a$$i0ations, or advan0es

Commer0ia wire trans%ers

'usiness+to+business $ayments Em$oyee bene%its$ension administration

Potenti"# "re"$ %&ere eB"n'in( c"n be )$e* :

An()here Ban&ing Citien be de$osit or wit#draw t#eir money anyw#ere in

0ountry irres$e0tive o% t#e bran0# w#ere #eir $arent a00ount is #ed5 T#is wi -ive

-reater se0urity %or travein- business $eo$e to de$osit money 0oe0ted %romtraderK0ients5 AT&s is anot#er mode o% anyw#ere 'an4in-, 0onsumer 0an use

servi0es o% AT&s anyw#ere in 0ountry, redu0in- burden o% 0arryin- money w#ie

travein-5

Smart $ar" s%l*ti%nSmart 0ards wi -ive #e$%u in brinin- -overnmenta servi0es

and 'an4in- more osers to $eo$e5 "ramer servi0e 0enter are e6am$e o% t#is

initiative5 Smart 0ards wi be -reater %e6ibiity to users redu0in- t#e %rauds andma$ra0ti0e w#at debit 0ards and 0redit 0ards are not abe to o%%er5 On ot#er #and

smart 0ard 0an e used as identi%i0ation 0ard %or number o% ot#er servi0es i4e drivin-

i0ense, $ass$ort ee0tion 0ards and ot#er t#in-s5

Online a$$%*nt managementCitien 0an man-e t#eir a00ount onine5 Anytime

'an4in-, it wi redu0e t#e time deay and de$enden0y on 'an4 sta%% and timin- o%

o$erations5

Online 'ill pa(ment 3nternet 'an4in- is %re1uenty used %or a6 $ayments5 'i

$ayments i4e o% ee0tri0ity, water, muni0i$a and tee$#ones5 &any $ubi0 se0tor

0om$anies are o%%erin- onine $ayment servi0es %oe e5-5 &T8@, 'S8@ et05 3ndian

Raiways #as start onine reservation system %or 0redit 0ards and debit 0ard#oder5 in

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T,PES OF RISK IN EBANKING:

T#e ris4s to w#i0# a 'an4 is $arti0uary e6$osed in its o$erations are: i1uidity ris4,

0redit ris4, mar4et ris4s (interest rate ris4, %orei-n e60#an-e ris4 and ris4 %rom 0#an-e in

mar4et $ri0e o% se0urities, %inan0ia derivatives and 0ommodities!, e6$osure ris4s,

investment ris4s, ris4s reatin- to t#e 0ountry o% ori-in o% t#e entity to w#i0# a 'an4 is

e6$osed, o$erationa ris4, e-a ris4, re$utation ris4 and strate-i0 ris45

Li.*i"it( ris& is t#e ris4 o% ne-ative e%%e0ts on t#e %inan0ia resut and 0a$ita o% t#e

'an4 0aused by t#e 'an4s inabiity to meet a its due obi-ations5

Cre"it ris&is t#e ris4 o% ne-ative e%%e0ts on t#e %inan0ia resut and 0a$ita o% t#e 'an4

0aused by borrowers de%aut on its obi-ations to t#e 'an45

Mar&et ris&in0udes interest rate and %orei-n e60#an-e ris45

Interest rate riskis t#e ris4 o% ne-ative e%%e0ts on t#e %inan0ia resut and 0a$ita o% t#e

'an4 0aused by 0#an-es in interest rates5

/%reign e0$hange ris& is t#e ris4 o% ne-ative e%%e0ts on t#e %inan0ia resut and

0a$ita o% t#e 'an4 0aused by 0#an-es in e60#an-e rates5

A s$e0ia ty$e o% mar4et ris4 is t#e risk of change in the market price o% se0urities,

%inan0ia derivatives or 0ommodities traded or tradabe in t#e mar4et5

E0p%s*re ris&sin0ude ris4s o% 'an4s e6$osure to a sin-e entity or a -rou$ o% reated

entities, and ris4s o% 'an4s e6$osure to a sin-e entity reated wit# t#e 'an45

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In,estment ris&sin0ude ris4s o% 'an4s investments in entities t#at are not entities in

t#e %inan0ia se0tor and in %i6ed assets5

I1."ct o0 e B"n'in( in tr"*ition"# $ervice:

E+'an4in- transa0tions are mu0# $heaper t#an bran0# or even $#one

transa0tions5

E+'an4s are eas( t% set *pso ots o% new entrants wi arrive5 LOd+word

systems, 0utures and stru0tures wi not en0umber t#ese new entrants5

E+'an4in- is just 'an4in- o%%ered via a ne) "eli,er( $hannel5 3t sim$y -ives

0onsumers anot#er servi0e (just as AT&s did!5

E!O+UTION OF EBANKING

Ee0troni0 'an4in- started a%ter Se0ond Bord Bar wit# t#e use o% $ro$rietary so%twareand $rivate networ4s5 3nternet made e'an4in- trustwort#y and use%u5 3nternationa trade

#as in0reased si-ni%i0anty in $ost word war $eriod and wit# it monetary transa0tions

between di%%erent 0ountries #ave in0reased5

E'an4in- #as %a0iitated tradin- between distant 0orners o% t#e word wit#out worryin-

about monetary transa0tions5 E+0ommer0e #as -rown e6$onentiay over ast 7) years5

Ee0troni0 2ata 3nter0#an-e (E23! and Ee0troni0 "unds Trans%er (E"T! were introdu0ed

in t#e ate .*)s, to send 0ommer0ia do0uments i4e $ur0#ase orders or invoi0esee0troni0ay5 3n .?)Ms e'an4in- -ot a new dimension by t#e use o% 0redit 0ards,

Automated Teer &a0#ines (AT&! and tee$#one 'an4in-5

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2HAT MADE EBANKING SO HIT34

"eatures w#i0# ma4e it so $o$uar are =

Re"# ti1e B"n'in(

Uni4e traditiona 'an4in- w#i0# su%%ers %rom time 0onsumin- $ro0edures, e'an4in-

$rovides rea time 'an4in- to t#e 0ustomers5 ou -et a t#e reevant in%ormation about

your a00ount instanty5

ou 0an a00ess a t#e detais about your a00ount sittin- at #ome or at any distant

o0ation5 E'an4in- #as turned w#oe word into a sma via-e5

5678 B"n'in(

e'an4in- #as removed t#e time 0onstraint %rom 'an4in-5 8ow you 0an wit#draw 0as# or

-et any 'an4in- %a0iity anytime5 ou are not re1uired to as4 'an4 em$oyees %or it5

Ee0troni0 system wi do a o% t#is %or you instanty5

B"n'in( 0ro1 "n9%&ere

2onMt worry i% you are sittin- in &idde East 0ountry and want to 0#e04 you a00ount in8ew or45 E'an4in- 0ertainy eaves no room %or bamin- t#e distan0es5 Smart 'an4in-

is ready to serve you anyw#ere, anytime5

S"0e "n* $ec)re B"n'in(

Ee0troni0ay enabed 'an4in- is more immune to se0urity and sa%ety reated $robems5

Password 'ased En0ry$tion (P'E!, Se0ure So04et @ayer (SS@!, ee0troni0 si-natures and

ee0troni0 to4ens -ives a #i-# eve o% se0urity5 Any ma%un0tionin- or any in0onsisten0y

in your a00ount 0an be tra0ed easiy5 T#is ma4es e'an4in- more reiabe5

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INTRODUCTION

Ba$& gr%*n" %+ st*"(

Te0#noo-y is revoutioniin- t#e %inan0ia servi0es industry t#rou-# various unt#in4abe

innovations5 T#e voume o% 0ross+border tradin- and ot#er %inan0ia a0tivates is in0reasin-

-eometri0ay %a0iitated by te0#noo-y5 T#e in%uen0e o% te0#noo-y over $rodu0t

innovation in 'an4s is enormous5

T#e AT& is su0# ty$e o% innovation t#at 0an me0#ani0ay a00e$t de$osits, issue wit#

draws, and trans%er %unds between a00ounts, 0oets bis and ma4e sma oans5 2ena

'an4 is one o% t#e @adin or-aniations in t mordrn %inan0ia word5 3t started its o$eration

in 3ndia5Tabe .: -rowt# rat o% 2ena AT& users

$arti0uars &ay ))D &ay))9 &ay)); &ay))* &ay))? &ay ))Growt# rat 795D9 ;95? D95;* 9959; ;)59; ;95?

Objective o0 t&e $t)*9

.5 To e6amination t#e eve o% no sta%% 0ustomer satis%a0tion asso0iated wit various

as$e0ts o% 2ena 'an45

5 To e6amine t#e servi0e eve o% sta%% 0ustomer satis%a0tion asso0iated wit# various

as$e0t o% 2ena 'an4

75 To ma4e $oi0y re0ommendations to im$roved t#e servi0e 1uaity o% 2ena 'an4 AT&5

+i1it"tion o0 $t)*9

.5 T#e survey 0ondu0ted %or t#e study is one ty$e o% e6$oratory resear0# 5so it does

not $rovide 0on0usive eviden0e55 3n t#is study be0ause o% a0ute time s#orter and or-aniationa restri0tion, non

$robabiity sam$in- te0#ni1ue #as been used5

75 3n t#is study detaied 0assi%i0ation o% res$ondent 0oud not be done5 Ea0#

res$ondent mi-#t #ave 0assi%ied on t#e basis o% t#eir a-e, edu0ationa

ba04-round, e6$erien0e, nature o% $ro%ession, ty$es o% business se6, status et05

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D5 As t#e sam$e sie is very sma, -eo-ra$#i0a and re-ion di%%eren0es 0oud not be

made5 'e0ause o% t#e time 0onstraint, t#is study in0ude ony in Gwaior5

Met&o*o#o(9 o0 t&e $t)*9

Po$uation and sam$e:

As a 0ase study 0over ony t#e 2ena 'an4 5t#e $o$uation de%ined %or t#is study was

imited to t#e AT& users o% 2ena 'an4 and t#e sta%% AT& users o% 2ena 'an4 5t#e

$o$uation re$resent a t#e 2ena AT& users5 in t#is study 0onvenien0e sam$in-

te0#ni1ue #as been used5 On t#e basis o% 0onvenien0e, .? non sta%% AT& users and .7

sta%% users was see0ted5

2ata base and $ro0edure o% anaysis:

'ot# $rimary and se0ondary data were used %or t#e $ur$ose o% study5 One set o%

stru0tured 1uestionnaire was used to 0oe0t $rimary data %or t#e study5 A%ter deveo$in-

t#e 1uestionnaire, it was -iven to two -rou$s o% res$ondents: 2ena 'an4 sta%% t#at use

2ena 'an4 AT& and non sta%% -enera 2ena 'an4 AT& users5 T#e survey #as been

0ondu0ted $ersonay at see0ted AT&5 Res$ondent AT& users #ave been e6$ained

obje0tive o% t#e study and re1uested to %i in t#e 1uestionnaire in t#e s$ot5 2ata #ave beenanayed by usin- des0ri$tive statisti0s5 &ean eve o% satis%a0tion o% t#e two -rou$s o%

res$ondents were 0a0uated5 'y usin- t#ese mean eves o% satis%a0tion, in%ormation #as

been $rovided to use in anayin- t#e situation5

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a $asti0AT& 0ardwit# a ma-neti0 stri$eor a $asti0 smart0ardwit# a0#i$, t#at 0ontains

a uni1ue 0ard number and some se0urity in%ormation, su0# as an e6$iration date or C>C

(C>>!5 Se$*rit(is $rovided by t#e 0ustomer enterin- a$ersona identi%i0ation number

(P38!5

2E'3T CAR2:

A "e'it $ar"(aso 4nown as a Ban& $ar"or $he$& $ar"! is a $asti0 0ard w#i0# $rovides

an aternative $ayment met#od to 0as#w#en ma4in- $ur0#ases5 "un0tionay, it 0an be

0aed an ee0troni0 0#e04, as t#e %unds are wit#drawn dire0ty %rom eit#er t#e 'an4

a00ount, or %rom t#e remainin- baan0e on t#e 0ard5 3n some 0ases, t#e 0ards are desi-ned

e60usivey %or use on t#e 3nternet, and so t#ere is no $#ysi0a 0ard

CR23T CAR2:

A $re"it $ar"is $art o% a system o%$aymentsnamed a%ter t#e sma$asti00ard issued to

users o% t#e system5 3t is a 0ard entitin- its #oder to buy -oods and servi0es based on t#e

#oderMs $romise to $ay %or t#ese -oods and servi0es5.QT#e issuer o% t#e 0ard -rants aine

o% 0redit to t#e 0onsumer (or t#e user! %rom w#i0# t#e user 0an borrow money %or

$ayment to amer0#antor as a0as# advan0eto t#e user5

Pin advi0e:

A seaed enveo$e wit#in w#i0# $in is en0ose 5t#e $in advi0e and t#e $in maier a

en0osed in a sin-e window enveo$ and #anded to t#e 0ustomer5

Abo)t Den" B"n'

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http://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Magnetic_stripehttp://en.wikipedia.org/wiki/Smartcardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Card_Security_Codehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Credit_card#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Magnetic_stripehttp://en.wikipedia.org/wiki/Smartcardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Card_Security_Codehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Credit_card#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advance

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Dena Ban&was +%*n"e" %n 12th Ma(3 567by t#e %amiy o% De,&aran Nan8eeunder

t#e name De,&aran Nan8ee Ban&ing C%mpan( Lt"

3t be0ame a Pubi0 @td5 Com$any in 2e0ember .7 and ater t#e name was 0#an-ed to

Dena Ban& Lt"

3n Juy .; Dena Ban& Lt"aon- wit# .7 ot#er major 'an4s was nationaied and is

now a Pubi0 Se0tor 'an4 0onstituted under t#e 'an4in- Com$anies (A01uisition N

Trans%er o% Underta4in-s! A0t, .*)5 Under t#e $rovisions o% t#e 'an4in- Re-uations

A0t .D, in addition to t#e business o% 'an4in-, t#e 'an4 0an underta4e ot#er business

as s$e0i%ied in Se0tion ; o% t#e 'an4in- Re-uations A0t, .D5

Milest%nes

One amon- si6 Pubi0 Se0tor 'an4s see0ted by t#e Bord 'an4 %or san0tionin- a

oan o% Rs5*57 0ores %or au-mentation o% Tier+33 Ca$ita under "inan0ia Se0tor

2eveo$menta $roje0t in t#e year .95

One amon- t#e %ew 'an4s to re0eive t#e Bord 'an4 oan %or te0#noo-i0a u$

-radation and trainin-5

@aun0#ed a 'ond 3ssue o% Rs55.7 0ores in 8ovember .;5

&aiden Pubi0 3ssue o% Rs5.?) Cores in 8ovember .;5

3ntrodu0ed Tee 'an4in- %a0iity o% see0ted metro$oitan 0enters5

2ena 'an4 #as been t#e %irst 'an4 to introdu0e:

&inor Savin-s S0#eme5

Credit 0ard in rura 3ndia 4nown as I2E8A

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!isi%n+2E8A 'A8< wi emer-e as t#e most $re%erred 'an4 o% 0ustomer 0#oi0e 3n its

area o% o$erations, by its re$utation and $er%orman0e

EAR B3SE CO&PARAT3>E PER"OR&A8CE:+

Per%orman0e $arameters ));+))* ))*+))? ))?+))2eivery 0#annesN Resour0e8o5 o% bran0# ..79 ..;) ..?DTota 0om$uteried bran0#es ..79 ..;) ..?DOut o% w#i0#, 'ran0#es wit# 0ore

'an4in-

.7 .)? ;);

8o o% AT&s ; 7.; 7?*

8o5 o% em$oyees .).) 9* ??7CAP3TA@ N RESER>ECAP3TA@ ?;5? ?;5? ?;5?Reserve(E60udin- Revauation Reserve 97 .?) .;;Ca$ita Ade1ua0y Ratio (! ..59 ..5) .5)*'usinessTota de$osit *;? 77D7 D7)9. 3n0rease .*5 59? ;5?7@oans N Advan0e(net! .?7)7 7)D ??*? 3n0rease ?5;. 95* D5?3nvestment(net! 79 .)779 .D*7

in0rease ? .)5?7 .5@oans N Advan0eto:Priority se0tor *; ?); *.9A-ri0uture 77DD *D 7?9.Sma N &edium Enter$rises 7.9? 7??9 D**9Priority se0tor Advan0es in terms D5)7 D757 D.599"inan0ia:O$eratin- $ro%it ;79579 ;9;5DD *;57;8et $ro%itoss ).59; 79;5* D5;;Produ0tivity Ratio:Per em$oyee business D59? 95*; *57.Per bran0# business DD5*; 9D5)7 ;;5D9Asset uaity o% ratio o% -ross 8PA to Gross Advan0es Ratio 75? 5D9 5.7 o% net 8PA to 8et Advan0es Ratio: .5 )5D .5)

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Revie% o0 #iter"t)re

Can Ban&s impr%,e $*st%mer relati%nships )ith high .*alit( %nline

ser,i$es9

Aut#or(s!: Carme Herin-ton, S0ott Beaven

A'stra$t

:*rp%se= T#e $ur$ose o% t#is resear0# is to e6$ore t#e im$a0t o% onine servi0e 1uaity

on t#e eve o% 0ustomer dei-#t and on t#e deveo$ment o% 0ustomer reations#i$s5

/in"ings = Onine servi0e 1uaity #as no im$a0t on 0ustomer dei-#t, e+trust or t#edeveo$ment o% stron-er reations#i$s wit# 0ustomers5 3t does #ave a reations#i$ to e+

oyaty5 However, t#e e%%i0ien0y dimension o% onine servi0e 1uaity is reated to e+trust

and aso indire0ty to reations#i$ stren-t# t#rou-# e+trust5 T#e $ersona need and site

or-aniation dimensions o% onine servi0e 1uaity are reated to e+oyaty, wit# $ersona

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needs e6#ibitin- t#e stron-est im$a0t5 Customer dei-#t #as no reations#i$ to onine

servi0e5

The e++e$t %+ a*t%mate" ser,i$e .*alit( %n Ban& +inan$ial per+%rman$e

an" the me"iating r%le %+ $*st%mer retenti%n

A*th%r A+Hawari, &o#ammed

A'stra$t

T#e im$a0t o% automated servi0e 1uaity on 'an4 %inan0ia $er%orman0e and t#e

mediatin- roe o% 0ustomer retention #ave re0eived itte attention, as s0#oars #ave%o0used on issues o% usabiity and measurement5 T#is study be-ins by s#owin- t#e im$a0t

o% te0#noo-y on t#e way 'an4s 0ondu0t business and $ro0eeds to dis0uss automated

servi0e 1uaity de%initions and t#e $otentia in%uen0e o% automated servi0e 1uaity on

retention and %inan0ia $er%orman0e5 A mediatin- mode t#at in4s servi0e 1uaity to 'an4

%inan0ia $er%orman0e t#rou-# 0ustomer retention in t#e automated servi0e 0onte6t is

$ro$osed5 T#e resuts o% t#is em$iri0a study 0on%irm t#e roe o% 0ustomer retention as a

mediator in t#e e%%e0t o% automated servi0e 1uaity on %inan0ia $er%orman0e5 3m$i0ations

o% t#e %indin-s are dis0ussed and t#e imitations o% t#e study and t#e $otentia %or %uture

resear0# are 0onsidered5 Journa o% "inan0ia Servi0es &ar4etin-

Robert E5itan (.! des0ribed t#e introdu0tion and ra$id use o% AT& as t#e most visibe

revoution in 'an4in- se0tor5 He aso su$$orted #is 0aim by t#e statin-5

AT& o%%er 0onsume t#e 0onvenien0e o% 'an4in- in many more o0ation t#an ever

be%ore indeed AT&s %ar out number bri04 and mortar 'an4 in ar-e $art be0ause t#ey are

0#ea$er to o$erate t#an a 'an4 bran0# today neary ,))))) a4#as AT&s are %ound

t#rou-# out t#e 0ountry more t#an t#e 0oe0tive no5 o% bran0#es 'an4s t#ri%ts and 0redit

unions

3n t#e .st0entury AT& 0ard #ave be0ome on o% t#e most $o$uar non 0as# instrument in

t#e United States and $o$uarity #a been e60usivey -rowin- around t#e word5

As Stuart E5weinr (.! $ointed out:

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T#e tota number o% AT& transa0tion #as more t#an doubes over t#e ast ten year and is

estimated to rea0# near .. biion a-ain t#is year5 And t#ere are si-n t#at AT& voume

may be $ea4in-, AT& a00ess 0ontinued -row 5t#e tota number o% AT& terminas #a

tri$ed t#e over t#e ast ten years5

The a"%pti%n %+ ele$tr%ni$ Ban&ing ser,i$es in "e,el%ping $%*ntries ;

The R%manian Case

A*th%r2os$ines0u O0tavian , Rusu 2aniea5

A'stra$t

T#e deveo$ment ta4in- $a0e in in%ormation and 0ommuni0ation te0#noo-y is a%%e0tin-

t#e %inan0ia institutions wordwide5 T#is evoution #ad trans%ormed t#e way 'an4sdeivered t#eir servi0es, usin- te0#noo-ies i4e automated teer ma0#ine (AT&! ,

$#ones, t#e 3nternet , 0redit 0ards , and ee0troni0 0as# , in t#is s$rit, 'an4in- in Romania

#as been under-oin- some 0#an-es5 &any 'an4s #ave been investin- in internet

te0#noo-y in order to maintain a 0om$etin- ed-e5

T#is $a$er $resents t#e various as$e0ts re-ardin- t#e a$$i0ation o% in%ormation and

0ommuni0ation te0#noo-y in t#e 0onte6t o% a deveo$in- nationa

Can E-Ban&ing ser,i$es 'e pr%+ita'le9

A*th%r O-a @ustsi4

A'stra$t

Over t#e ast %ew years Euro$ean 'an4s #ave been s$ent biions o% Euros on new

ee0troni0 0#annes5 However, a%ter some year o% e60itement it was 0ear t#at t#e 'an4s

on- awaited s4yro04etin- $ro%it %rom t#is area woud not be netted5 Estonian 'an4s #ave

aso invested in e6$andin- and im$rovin- t#e 3T systems and a number o% new e+'an4in-

servi0es #ave been deveo$ed5 Unti re0enty most o% t#e $ri0in- de0isions %or e'an4in-

servi0es #ave been made on t#e basis o% t#e -ut %eein- as t#e 0urrent %inan0ia system

su$$ort su0# anaysis5 3n t#is arti0e t#e aut#or e6$ores t#e im$ementation te0#ni1ues o%

a0tivity based 0ostin- (A'C! in t#e 'an4in- se0tor on t#e e6am$e o% an Estonian 'an4

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in order to anaye t#e 0ost stru0ture %or traditiona and ee0troni0 0#anne transa0tions5

T#e arti0e s#ows #ow it is $ossibe to im$ement A'C in 'an4in- and $roves

em$iri0ay t#at ee0troni0 0#annes #e$ redu0e t#e 0osts o% bot# 'an4s and t#eir 0ients5

Fin*in(

T#is se0tion deas wit# t#e survey %indin- reated wit# t#e 1uestion t#at demanded t#e

AT& users $er0e$tion about t#e eve o% satis%a0tion wit# res$e0t to various issues5

S#own in t#e %oowin- tabe:

Tabe:. @eve o% 0ustomer satis%a0tion wit# various as$e0t

3tem 8on sta%% users Sta%% users

Prom$tness o% 0ard deivery .)T#e $er%orman0e o% AT& .) ..

T#e servi0e 1uaity o% AT&

$ersonne

? .)

T#e 1uaity o% notes .)

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Reative $osition o% 2ena 'an4

AT&

. .

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8umber Per0enta-e (! 8umber Per0enta-e

Cas# wit#drawa .D **5*? . 5*

Servi0e 1uaity o% AT&

$ersonne

.9 ?7577 .. ?D5D

O%% s#ore AT& .D **5*? . 5*

Time savin- .; 75D .7 .))

Easy to use .D **5*? .7 .))

Prom$t 0ard deivery .9 ?7577 .) **5*

D #our servi0e in 7;9 days .; 757D . 5*

A00ount a0tivity en1uiry .7 *.5* .. ?D5D

Statement re1uest .9 ?7577 .) **5*

Sa%ety se0urity .7 *.5* ;Trans%er . ;95D9 . 5*

2e$osit mai de$osit .7 *.5* .7 .))

Pin 0#an-e . ;95D9 .. ?D5D

Good de0oration N tidiness .; 757D . 5*

En1uiry .9 ?7577 .. ?D5DComment on t#e un0om%ortabe %eature issue o% 2ena 'an4 AT&:

Tabe :D 0ustomer 0omment on un0om%ortabe %eature o% 2ena 'an4 AT&

Un0om%ortabe %eatures 8on sta%% sta%% 8umber $er0enta-e 8umber Per0enta-e

Unsuitabe o0ation .; 757D . 5*

Poor money 1uaity .* 577 ;

Unse0ured .7 *.5* .. ?D5D

&a0#ine 0om$e6ity .9 ?7577 ? ;)2eay in 0ard deivery .; 757D * 975*

Card o04in- .9 ?757D .. ?D5D

Poor servi0e 1uaity .D **5*? ; D

Od %as#ioned N untidy .9 ?7577 . 5*

&a0#ine brea4 down .; 757D * 975*

Re0ommendation made by 0ustomers:

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Tbae9: AT& users re0ommendation

Re0ommendation 8on sta%% Sta%%

number Per0enta-e (! number Per0enta-e (

8ew AT& o0ation .* 577 .7 .))'etter 1uaity 0urren0y .; 75D .) **5*

3n0rease o% sa%ety %eature .* 577 .) **5*

&ore users %riendy .* 577 .. ?D5D

3n0rease in number o% AT& .D **5*? . 5*

Prom$t 0ard deivery .9 ?7577 .. ?D5D

'etter 0ustomer servi0e .; 75D .) **5*

"a0iity to $ay utiity . ;95D9 . 5*&ore wit#drawa imit .9 ?7577 .7 .))

&ore denominator .7 *.5* ;

&a4in- more attra0tive de0orations .; 75D . 5*

T#e Pre%eren0e %or new o0ation:+ A00ordin- to t#e nonsta%% 0ustomers t#e %oowin- are

t#e most im$ortant o0ations w#ere 2ena 'an4 0an set u$ new AT& boot#5

Tabe ;: 8onsta%% Customers $re%eren0e %or new o0ation

@o0ation Res$onse Per0enta-e (!T#ati$ur .D **5*?

&orar . ;95D9

'ada .; 757D

T#e ot#er o0ations in0ude "arm -ate (.)!, and Jatrabari (9!5

Amon- t#e di%%erent new o0ations see0ted by t#e sta%%s, t#e %oowin- are notewort#y:

Tabe ;: Sta%% 0ustomers $re%eren0e %or new o0ation

@o0ation Res$onse Per0enta-e (!

T#ati$ur . 5*

&orar .. ?D5D

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'ada . 5*

;59 Comment on additiona %a0iities by 0ustomers:

Here t#e res$onondents were re1uested to 0omment on w#et#er t#ey want any %urt#er

%a0iities ot#er t#an AT& su0# as debit 0ard, 0redit 0ard, et05 T#e res$onses are -iven in

t#e %oowin- tabe:

Tabe *: AT& users 0omment on additiona %a0iities

"a0iities 8onsta%% Sta%%

8umber Per0enta-e (! 8umber Per0enta-e (!2ebit 0ard .) 9959 9 7?5D

Credit 0ard D 5 D 7*

'ot# ; 7757 9 D5;

8one + + +

Tota .? .)) .7 .))

So t#e 0ustomers want some more %a0iity su0# as 0redit 0ard %a0iity to be used in 2ena

'an45

S)11"r9 o0 Fin*in(

T#e survey %indin- 0an be summaried in t#e %oowin- manner:.5 T#e sta%% and non sta%% 2ena 'an4 AT& users (see0ted on t#e basis o% 0onvenien0e!

are more t#an neutra stat in res$e0t o% a t#e 0riteria see0ted to determine t#e eve o%

satis%a0tion5

5 T#e avera-e satis%a0tion eve o% sta%% AT& users is more t#an t#at o% non sta%% AT&

users in a res$e0ts5 And t#e di%%eren0e is materia in 0ase o% t#eir o$inion re-ardin-

t#e $er%orman0e o% 2ena 'an4 AT&5 T#e reasons 0an be e6$ained bow5

Use o% 'ran0# AT&: + T#e sta%%s use %a0iities o% bran0# AT& more t#an t#e o%%+sit

AT&s5 T#e reason is obvious5 T#ey wor4 in $arti0uar bran0#5 A%ter t#e end o% t#e

day, or at a time o% need i% t#ey are at t#e o%%i0e, t#ey use t#e bran0# AT& %a0iities5

T#e bran0# AT& %a0iities are -eneray better t#an t#e boot# AT& %a0iities5 'e0ause

w#enever t#e bran0# AT& %a0iities are out o% order or some sort o% $robem arises

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wit# res$e0t to bran0# AT&, t#e bran0# sta%%s 0an ta4e 1ui04 a0tion to brin- t#e

%a0iity in order or to sove t#e $robem5

Psy0#oo-i0a reason: T#e sta%% res$ondents #od -ood im$ression about t#eir

or-aniation5 So w#enever t#ey were re1uested to 0omment on t#eir satis%a0tion eves

in various as$e0ts o% AT&, t#ey -eneray $rovided $ositive res$onses w#i0# are

0onsistent wit# t#eir menta setu$5

75 T#e main $robem areas o% 2ena 'an4 are isted bow:

&a0#ine brea4down: About ;9 nonsta%% 7? sta%% AT& users %ee t#at ma0#ine

brea4down is t#e main $robem o% 2ena 'an4 AT&5 &a0#ine brea4down

-eneray o00urs %or t#e %oowin- reasons:

Poor 1uaity notes: 3% t#e notes su$$ied in t#e AT&s are $oor 1uaity, t#e 0#an0e

o% ma0#ine brea4down in0rease5 'e0ause t#e sensor t#at $i04s t#e notes %rom t#e

0assette 0ant o$erate smoot#y5

Hi-# %re1uen0y o% us: t#e %re1uen0y o% use is very #i-#5

Unsuitabe o0ation: About 9) 0ustomer and 7)sta%% AT& users %ee t#at t#e

o0ation o% AT& is unsuitabe And) is in 0on%usionF

Poor 0urren0y uaity: ?) sta%% and ;) 0ustomer are satis%ied5

&a0#ines 0om$e6ity: ) sta%% 0ustomer and ?) 0ustomer beieve t#at

ma0#ines are 0om$e65

2eay in 0ard deivery:

.! Bron- address o% t#e 0ustomer5

! 3n0om$ete address o% 0ustomer5

7! "i0titious address o% 0ustomer

D5 8ew AT& o0ation: At $resent number o% o0ation are not su%%i0ient to meet t#e need

o% -rowin- 0ustomer o% AT& users5

95 &ore users %riendy ma0#ine About D) o% t#e sta%% 0ustomer and ;) o% sta%%

0ustomer t#in4 t#at t#e AT& #od be moe users %riendy5

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;5 3n0rease t#e sa%ety %eature

*5 Uses t#e t#e trans$arent -ass5

?5 Provide t#e i0ensin- Arms to t#e se0urity $erson o% AT&5

Conc#)*in( re1"r'

"rom t#e above anaysis, it is evident t#at 2ena 'an4 AT& #as many $ositive %eature but

t#e 0ustomers see0ted on t#e basis o% 0onvenien0es are not we aware o% a t#ese 5

T#ese 0ustomers are aso %a0in- di%%erent ty$es o% $robem wit# w#i0# AT& is dire0ty

reated 5ma0#ine 0om$e6ity ma0#ine brea4down $oor 1uaity notes et0, not dire0ty

reated wit# t#e 2ena 'an4 AT& su0# as sa%ety =se0urity de0oration to sta%% and non sta%%

0ustomer AT& users #ave di%%erenty eve o% satis%a0tion wit# various as$e0t o% AT&5

t#e most im$ortant t#in- is t#at at every as$e0t t#e see0ted 0ustomer #ave more tan

neutra eve o% satis%a0tion5

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D5 Automati0 Teer &a0#ine, avaiabe #tt$:en5wi4i$edia5or- (a00essed on

7)5)?5)9!

95 Automati0 Teer &a0#ine, avaiabe at #tt$:www5%rodo$50omAT&(a00essed

on 5)?5)9!

;5 'aa, S5o5 ;: .9.+.95

.5 Gu$ta, S5P5 (.D!, Pra0tia0a Statisti0s (8ew 2e#i: S5 C#and N Com$any @td5!5

.75 T#e History o% AT&, avaiabe

#tt$:inventors5about50omibraryinventorsbAT&5#tm(a00essed on 5)5)9!5

.D5 Timeine: T#e AT&s #istory, avaiabe at #tt$:www 5AT&mar4et$a0e50om

(a00essed on 5.)5)9!

.95 Vi4mund, B5G5 ())7!, 'usiness Resear0# &et#ods, USA: T#omson Sout#+

Bestern5

.;5 @ustsi4 O5 ())D! Can E'an4in- servi0es be $ro%itabe

7) / P a - e

http://en.wikipedia.org/http://www.frodop.com/atm/(accessedhttp://www.hass.berkeley.edu/finance/CMWpaper.pdfhttp://inventors.about.com/library/inventors/blatm.htmhttp://en.wikipedia.org/http://www.frodop.com/atm/(accessedhttp://www.hass.berkeley.edu/finance/CMWpaper.pdfhttp://inventors.about.com/library/inventors/blatm.htm

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Appen"i0

Use o% AT& and t#e eve o% satis%a0tion

Point . 7 D 9

uestionnaire

Pease $ut ti04 (W! 0omment on t#e %oowin- as a$$ro$riate:

.5 @eve o% satis%a0tion wit#

T#e $rom$tness o% 0ard deivery:

T#e $er%orman0e o% 2ena 'an4

T#e servi0e 1uaity o% AT& $ersonne

(uery res$onse, timey a0tion on re1uest et05!

T#e 1uaity o% notes (0urren0y!

2o you 4now a t#e %eatures o% 2ena 'an4

75 3% yes, #ave you tried ever to use t#e %a0iities ot#er t#en

0as# wit#drawa

7. / P a - e

. 7 D 9

. 7 D 9

. 7 D 9

. 7 D 9

ES 8O

ES 8O

@o0ation:

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D5 3% no, w#at is t#e reason be#ind your reu0tan0e

o 3t is 0umbersome

o 3 dont i4e it

o 'ran0# servi0e is better

o 3t 0ant $rovide me re1uired in%ormation

o 3t is time 0onsumin-

o Any ot#er+$ease s$e0i%y

o

o

o

95 w#at are t#e Positive %eatures o% AT& servi0e o% 2ena 'an45

o Prom$t 0ard deivery

o Easy to use

o Satis%ied wit# t#e servi0e 1uaity o% AT& $ersonne

o Time savin-s

o D #our servi0e in 7;9 days

o O%%+s#ore AT&

o Cas# wit#drawa

o A00ount a0tivity en1uiry

o Trans%er

o 2e$osit&ai de$osit

o Statement re1uest

o P38 0#an-e

o En1uiry

o Sa%ety+se0urityo Good de0oration N tidiness

o Any ot#er =$ease s$e0i%y

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;5 B#at are t#e un0om%ortabe %eatures issues o% 2ena 'an4

o Poor money 1uaity

o Card o04in-

o 2eay in 0ard deivery

o &a0#ine 0om$e6ity

o &a0#ine brea4down

o

Unsuitabe o0ationo Unse0ured

o Od %as#ioned N untidy

o Any ot#er = $ease s$e0i%y

*5 B#at are your re0ommendations to im$rove 2ena 'an4 AT& servi0es

&ore user %riendy ma0#ine

'etter 0ustomer servi0e

Prom$t 0ard deivery

8ew AT& o0ations

3n0rease in number o% AT& (w#i0# o0ation!

&ore wit#drawa imit "a0iity to $ay utiity

3n0rease o% sa%ety se0urity

'etter 0urren0y 1uaity

&a4in- more attra0tive = de0orations

77 / P a - e

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Any ot#er = $ease s$e0i%y

?5 Ot#er t#an AT&, do you want

2ebit 0ard

Credit 0ard

'ot#

8one

Any ot#er = $ease s$e0i%y

5 2o you use t#e AT& servi0e o% any ot#er 'an4

.)5 3% yes, #ow 0an you 0om$are t#e AT& servi0e o% 2ena 'an4 wit# t#e same o%

any ot#er 'an4 in 'an-ades#

T#an4 you very mu0# %or your time, 0oo$eration N Patien0e

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

7D / P a - e

ES 8O

>ery

$oor

$oo

r

Avera-e Good >er

-oo

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