EFFECT OF AUTOMATED TELLER MACHINE ON THE PERFORMANCE OF NIGERIAN BANKS
ABSTRACT OF AUTOMATED TELLER MACHINE'S impact ON NIGERIAN BANKS' PERFORMANCE
In this study, the impact of automated teller machines on Nigerian banks' performance in the banking sector is investigated.
The study's goals were to evaluate the impact of ATMs on the efficiency of the banking industry, the degree to which they have encouraged banking system growth, and the speed with which they have increased bank profitability. Three (3) banks—Access Bank, First Bank, and Diamond Bank—are the subject of this study.
For this study, primary data were the source of the data collection, and the data were gathered using a structured questionnaire. For this study, a sample of 100 respondents was used.
The research design chosen for this study was the survey research design. The data were analysed using the chi-square statistical technique and a basic percentage. The results showed a strong correlation between ATM efficacy and the efficiency of the financial system.
Additionally, it was shown that there is a strong correlation between ATMs and their capacity to spur the expansion of the banking industry. It has been determined that ATMs improve the efficiency of the banking system.
Additionally, it was shown that ATMs quickly increase banks' profits. Automated Teller Machines (ATM) should be placed in banks and convenient locations for customers, it was advised.
Customers can drive up to execute financial transactions thanks to this without ever having to leave the security of their possessions.
CHAPTER ONE OF EFFECT OF AUTOMATED TELLER MACHINE ON THE PERFORMANCE OF NIGERIAN BANKS
Globalisation and foreign experience are now crucial factors in today's corporate world. Banking companies must intentionally integrate their operations because they can no longer get away with running loosely connected sets of businesses that just so happen to be located all over the world.
Only the banks, businesses, industries, and entire communities that properly understand the new laws of conducting business in a global economy can prosper, according to Mitroff .
Management and executives now understand that they need to approach banking activities and management differently due to the intense global competition in the banking sectors.
The development of an efficient global banking management system with staff capable of creating and putting into practise transnational business plans using cutting-edge technology like automated teller machines (ATMs) is the only way for a global bank to prosper.
In recent years, technology has greatly encouraged the expansion of banking networks and the scope of services supplied. Electronic payments, loans, deposits, and securities are just a few examples of the banking services that have become largely dependent on information and telecommunications technology.
Banks are the largest users of contemporary technology equipment, mostly for this reason. Due to the complexity of financial services, banks are always happy to find ways to improve their performance or accessibility for consumers.
Olazabal and Thakor (2002) The term “automated teller machine” (ATM), also known as “automated banking machine” (ABM), “cash machine,” and other variations, refers to a computerised telecommunications device that allows bank customers to conduct financial transactions in a public setting without the assistance of a teller, cashier, or other human employee.
The consumer inserts an ATM card with a magnetic stripe or a plastic smart card with a chip, which carries a unique card number and certain security information like an expiration date or CVVC (CVV), to identify themselves at the majority of current ATMs.
The customer enters a personal identification number (PIN) to establish authentication. Customers can check their account balances, make cash withdrawals, credit card cash advances and buy prepaid mobile credit using an ATM to access their bank accounts.