A RESARCH REPORT

On
CUSTOMER SATISFACTION ON ATM SERVICES: A
CASE STUDY OF DENA BANK
At

Submitted to
(Jiwaji University, Gwalior)

For the partial fulfillment of the award of

Master of Business Administration
(2007-2009)

Submitted by
(Shilpa Senger)

Estd. 2002

INSTITUTE OF INFORMATION TECHNOLOGY & MANAGEMNT

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 DECLARATION

This is to declare that the Research Report has been

accomplished by me and being submitted in partial fulfillment of

requirement for the award of the Degree of Master of Business

Administration from institute of Information technology and

management affiliated to Jiwaji University Gwalior

This work has not been submitted by me anywhere else for

the award of any degree or diploma. All sources of information are

based on my on job training experience and lea

Shilpa Senger

MBA-4th Semester

ACKNOWLEDGEMENT
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 It is a great pleasure for me to put on records my appreciation
and gratitude towards Mrs. Vandana Bharti (A.H.O.D. of M.B.A.
Department) for his encouragement towards preparation of this
report.

I would like to express my deep sense of gratitude to prof.

Preeti singh for giving me valuable suggestion and encouragement.

I offer heart felt thank to my Parents, Brothers and all my

friends for their moral support and inspiration

Shilpa Senger

Contents
Contents................................................................................................................................3
INTRODUCTION................................................................................................................5
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Objective:..............................................................................................................................6
Project Intention:..................................................................................................................6
EMERGENCE OF EBANKING..........................................................................................6
DEFINATION OF E –BANKING:......................................................................................7
CHARECTERISTIC OF E- BANKING:.............................................................................7
COMMON E- BANKING SERVICE..................................................................................7
Potential areas where e-Banking can be used :-...................................................................8
E- BANKING DELIVARY CHANNEL.............................................................................9
ATM:...........................................................................................................................9
IVR (Interactive Voice Response):...............................................................................9
CDM (Cash Deposit Machine):....................................................................................9
POS (Point of Sale):.....................................................................................................9
TYPES OF RISK IN E-BANKING:..................................................................................10
Impact of e-Banking in traditional service:........................................................................11
EVOLUTION OF EBANKING.........................................................................................11

WHAT MADE E-BANKING SO HIT?.............................................................................12

Real time Banking......................................................................................................12
24/7 Banking...............................................................................................................12
Banking from anywhere.............................................................................................12
Safe and secure Banking.............................................................................................12
Easy Loans, Instant Loans..........................................................................................13
High Performance and flexibility...............................................................................13
ETHICS IN E- BANKING.................................................................................................13
CUSTOMER SAISFATION OF ATM SERVICES: A Case Study of Dena Bank...........13
INTRODUCTION......................................................................................................14
Objective of the study.................................................................................................14
Limitation of study.....................................................................................................14
Methodology of the study...........................................................................................15
About Dena Bank......................................................................................................16
Review of literature............................................................................................................19

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Finding................................................................................................................................22
Summary of Finding...................................................................................................26
Concluding remark.............................................................................................................28
References..........................................................................................................................29

INTRODUCTION

In the current age, every application is being ported to web and allows the user to connect
with the system and work online. It has allowed removing the barriers of the time and
distance. Competition and changes in technology and life style have changed the face of
Banking. Banking being the main financial back bone of any economy stays behind. Now
a day, Banks are seeking alternative ways to provide and differentiate their services.

Online Banking or e-Banking an be as online system which allow customers to plug into
a host of Banking services from a personal computer by connecting with the Bank ;s
computer over telephone wires. Technology continuous to make online Banking easier for
average consumers. Banks use a verity of names for online services, such as PC Banking,
home Banking, electronic Banking or internet Banking. Regardless of the name, these
systems offer certain advantages over traditional Banking methods.

This application is design to implement the Banking solution on the web to enable the
customer to transact, sitting at their PC, making their account available to them 24 hours a
day. The system should allow the customers top perform the following tasks online:

• View Account between online.

• Transfers between accounts.
• Cheque book issue request.
• DD issue request detain.

The system should allow the customers top perform the following tasks online:
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 • Open a new account and create a new user.
• Service the cheque book issue request.
• Service the DD issue request.
• Freeze / unfreeze an account.

Objective:

Objective of this project is to allow the Bank to expose its functionality on the web,
making their service available to the user- customer make them satisfied. While the
customers enjoy operating their account sitting in their homes, the Bank official, working
as administration of the system are expose to the service areas of the application. This
research purpose is to find the level of customer satisfaction for ATM services.

Project Intention:
• To find loopholes in ATM services
• To develop computerized system to handle all types of transaction occurring in the
Bank.

EMERGENCE OF EBANKING
Computer has eased human life. Every day new dimensions of its utility are emerging.
E-Banking is one of the gifts to human beings by computer technology. Use of computers
have automated Banking process and thus has given birth to e-Banking-Banking is a fast
spreading service that allows customers to use computer to access account-specific
information and possibly conduct transactions from a remote location - such as at home or
at workplace. Use of internet has made every thing available at your finger tip. Lot of
websites is ready to serve you, just at your mouse click.ATM cards, credit cards ,debit
cards, smart cards ,all these have eased human life up to such a extent that today life
without these seems to be hard, full of misery.

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DEFINATION OF E –BANKING:
“Electronic Banking or e-Banking is the process by which a customer can perform
Banking transactions electronically without physically visiting the Banks or financial
institutions.”
E-Banking or online Banking is a powerful "value added" tool to attract and retain new
customers while it helps to eliminate costly paper handling and teller interactions in an
increasingly competitive Banking environment. Trust factor values high in implementing
such kind of service and so higher priority is given to the security infrastructure.

CHARECTERISTIC OF E- BANKING:
• Speed of technological change,
• Changing customer expectations,
• Increased visibility of publicly accessible networks (e.g., the Internet),
• Less face-to-face interaction with financial institution customers,
• Need to integrate e-Banking with the institution’s legacy computer systems,
• Dependence on third parties for necessary technical expertise, and
• Proliferation of threats and vulnerabilities in publicly accessible networks.

COMMON E- BANKING SERVICE

Retail Services:
• Account management
• Bill payment and presentment
• New account opening
• Investment/Brokerage services
• Loan application and approval
• Account aggregation

Wholesale Services:
• Account management

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 • Cash management
• Small business loan applications, or advances
• Commercial wire transfers
• Business-to-business payments
• Employee benefits/pension administration

Potential areas where e-Banking can be used :-

• Anywhere Banking: Citizen be deposit or withdraw their money anywhere in

country irrespective of the branch where heir parent account is held. This will give
greater security for traveling business people to deposit money collected from
trader\clients. ATMs is another mode of anywhere Banking, consumer can use
services of ATMs anywhere in country, reducing burden of carrying money while
traveling.

• Smart card solution: Smart cards will give helpful in brining governmental services
and Banking more losers to people. Framer service center are example of this
initiative. Smart cards will be greater flexibility to users reducing the frauds and
malpractice what debit cards and credit cards are not able to offer. On other hand
smart card can e used as identification card for number of other services like driving
license, passport election cards and other things.

• Online account management: Citizen can mange their account online. Anytime
Banking, it will reduce the time delay and dependency on Bank staff and timing of
operations.

• Online bill payment: Internet Banking is frequently used for ax payments. Bill
payments like of electricity, water, municipal and telephones. Many public sector
companies are offering online payment services foe e.g. MTNL, BSNL etc. Indian
Railways has start online reservation system for credit cards and debit cardholder. in
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 coming future even person having internet Bank account can book sea online at ease
of their home.

• Online brokerage: Strong financial markets are always backbone of any

economy. Through e-Banking channels stock trading can reach to the people who
want to invest their money in financial markets but due to time constraints they are
not able to visit the broker.

E- BANKING DELIVARY CHANNEL

ATM:
An automated teller machine (ATM) is a computerized telecommunications device that
provides the customers of a financial institution with access to financial transactions in a
public space without the need for a human clerk or Bank teller.

IVR (Interactive Voice Response):

Interactive voice exchange is the E-Banking delivery channel used for transaction using
telecom infrastructure. User dials the number and selects the option using key punch,
operator response on every key press. Customer gives his identification by providing his
NIC and TPIN.

CDM (Cash Deposit Machine):

Cash deposit machine is the electronic machine used to deposit the cash, check. CDM
scan the cash or check and deposit the amount in his or her provided account number.

POS (Point of Sale):

Point of sale used for retail transaction device, customer perform transaction by swapping
the card on POS machine. Most of the customer used debit or credit card for purchasing
transaction. Different payment gateway offers their services to Banks such as VISA,
Master etc.

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TYPES OF RISK IN E-BANKING:
The risks to which a Bank is particularly exposed in its operations are: liquidity risk,
credit risk, market risks (interest rate risk, foreign exchange risk and risk from change in
market price of securities, financial derivatives and commodities), exposure risks,
investment risks, risks relating to the country of origin of the entity to which a Bank is
exposed, operational risk, legal risk, reputation risk and strategic risk.

Liquidity risk is the risk of negative effects on the financial result and capital of the
Bank caused by the Bank’s inability to meet all its due obligations.

Credit risk is the risk of negative effects on the financial result and capital of the Bank
caused by borrower’s default on its obligations to the Bank.

Market risk includes interest rate and foreign exchange risk.

Interest rate risk is the risk of negative effects on the financial result and capital of the
Bank caused by changes in interest rates.

Foreign exchange risk is the risk of negative effects on the financial result and
capital of the Bank caused by changes in exchange rates.
A special type of market risk is the risk of change in the market price of securities,
financial derivatives or commodities traded or tradable in the market.

Exposure risks include risks of Bank’s exposure to a single entity or a group of related
entities, and risks of Banks’ exposure to a single entity related with the Bank.

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Investment risks include risks of Bank’s investments in entities that are not entities in
the financial sector and in fixed assets.

Impact of e-Banking in traditional service:

• E-Banking transactions are much cheaper than branch or even phone

transactions.
• E-Banks are easy to set up so lots of new entrants will arrive. ‘Old-world’
systems, cultures and structures will not encumber these new entrants.
• E-Banking is just Banking offered via a new delivery channel. It simply gives
consumers another service (just as ATMs did).

EVOLUTION OF EBANKING
Electronic Banking started after Second World War with the use of proprietary software
and private networks. Internet made eBanking trustworthy and useful. International trade
has increased significantly in post world war period and with it monetary transactions
between different countries have increased.
EBanking has facilitated trading between distant corners of the world without worrying
about monetary transactions. E-commerce has grown exponentially over last 30 years.
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) were introduced
in the late 1970s, to send commercial documents like purchase orders or invoices
electronically. In 1980's eBanking got a new dimension by the use of credit cards,
Automated Teller Machines (ATM) and telephone Banking.

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 WHAT MADE E-BANKING SO HIT?.
Features which make it so popular are –

Real time Banking

Unlike traditional Banking which suffers from time consuming procedures, eBanking
provides real time Banking to the customers. You get all the relevant information about
your account instantly.
You can access all the details about your account sitting at home or at any distant
location. EBanking has turned whole world into a small village.

24/7 Banking
eBanking has removed the time constraint from Banking. Now you can withdraw cash or
get any Banking facility anytime. You are not required to ask Bank employees for it.
Electronic system will do all of this for you instantly.

Banking from anywhere

Don't worry if you are sitting in Middle East country and want to check you account in
New York. EBanking certainly leaves no room for blaming the distances. Smart Banking
is ready to serve you anywhere, anytime.

Safe and secure Banking

Electronically enabled Banking is more immune to security and safety related problems.
Password Based Encryption (PBE), Secure Socket Layer (SSL), electronic signatures and
electronic tokens gives a high level of security. Any malfunctioning or any inconsistency
in your account can be traced easily. This makes eBanking more reliable.

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Easy Loans, Instant Loans
Use of smart cards, debit cards, credit cards has eased you from hatred, time consuming
loaning procedures. Your Banks provide you instant loans. No need to keep cash with you
at all, a small chip card has replaced piles of cash.

High Performance and flexibility

eBanking is a high performance system satisfying it's customers for their every Banking
related queries and desires.

ETHICS IN E- BANKING

• Privacy of information about individual

• Accuracy of information
• Assesibity of information
• Ownership of information
• Intellectual prosperity

CUSTOMER SAISFATION OF ATM SERVICES: A Case

Study of Dena Bank
The Automated tellers machine (ATM) Is one type of innovation that can mechanically
accept deposits, issue withdrawals, transfer funs between account, collect bills, and make
small loans. This study aim at investigating the satisfaction levels of Dena Bank ATM
card holder (both staff & non staff) with respect to various aspects (promptness of card
delivery, the performance of Dena Bank, the service quality of ATM personnel etc). This
study is one type of exploratory research using convenience sampling techniques where
sample have been selected on basis of convenience.

Key words: ATM card, Machine breakdown, unsuitable location, currency quality.
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INTRODUCTION

Back ground of study:

Technology is revolutionizing the financial services industry through various unthinkable
innovations. The volume of cross-border trading and other financial activates is increasing
geometrically facilitated by technology. The influence of technology over product
innovation in Banks is enormous.
The ATM is such type of innovation that can mechanically accept deposits, issue with
drawls, and transfer funds between accounts, collets bills and make small loans. Dena
Bank is one of the Ladin organizations in t mordrn financial world. It started its operation
in India.
Table 1: growth rat of Dena ATM users

particulars May 2004 May2005 May2006 May2007 May2008 May 2009

Growth rat 35.45% 65.89% 45.67% 55.56% 60.56% 65.89%

Objective of the study

1. To examination the level of no staff customer satisfaction associated wit various
aspects of Dena Bank.
2. To examine the service level of staff customer satisfaction associated with various
aspect of Dena Bank
3. To make policy recommendations to improved the service quality of Dena Bank ATM.

Limitation of study
1. The survey conducted for the study is one type of exploratory research .so it does
not provide conclusive evidence.
2. In this study because of acute time shorter and organizational restriction, non
probability sampling technique has been used.
3. In this study detailed classification of respondent could not be done. Each
respondent might have classified on the basis of their age, educational
background, experience, nature of profession, types of business sex, status etc.
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 4. As the sample size is very small, geographical and region differences could not be
made. Because of the time constraint, this study include only in Gwalior.

Methodology of the study

Population and sample:

As a case study cover only the Dena Bank .the population defined for this study was
limited to the ATM users of Dena Bank and the staff ATM users of Dena Bank .the
population represent all the Dena ATM users. in this study convenience sampling
technique has been used. On the basis of convenience, 18 non staff ATM users and 13
staff users was selected.

Data base and procedure of analysis:

Both primary and secondary data were used for the purpose of study. One set of
structured questionnaire was used to collect primary data for the study. After developing
the questionnaire, it was given to two groups of respondents: Dena Bank staff that use
Dena Bank ATM and non staff general Dena Bank ATM users. The survey has been
conducted personally at selected ATM. Respondent ATM users have been explained
objective of the study and requested to fill in the questionnaire in the spot. Data have been
analyzed by using descriptive statistics. Mean level of satisfaction of the two groups of
respondents were calculated. By using these mean levels of satisfaction, information has
been provided to use in analyzing the situation.

Key term used:

ATM:
An automated teller machine (ATM) is a computerized telecommunications device that
provides the customers of a financial institution with access to financial transactions in a
public space without the need for a human clerk or Bank teller.

ATM CARD:
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a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains
a unique card number and some security information, such as an expiration date or CVC
(CVV). Security is provided by the customer entering a personal identification number
(PIN).

DEBIT CARD:
A debit card (also known as a Bank card or check card) is a plastic card which provides
an alternative payment method to cash when making purchases. Functionally, it can be
called an electronic check, as the funds are withdrawn directly from either the Bank
account, or from the remaining balance on the card. In some cases, the cards are designed
exclusively for use on the Internet, and so there is no physical card

CRDIT CARD:
A credit card is part of a system of payments named after the small plastic card issued to
users of the system. It is a card entitling its holder to buy goods and services based on the
holder's promise to pay for these goods and services.[1] The issuer of the card grants a line
of credit to the consumer (or the user) from which the user can borrow money for
payment to a merchant or as a cash advance to the user.

Pin advice:
A sealed envelope within which pin is enclose .the pin advice and the pin mailer a
enclosed in a single window envelop and handed to the customer.

About Dena Bank

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Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee under
the name Devkaran Nanjee Banking Company Ltd.
It became a Public Ltd. Company in December 1939 and later the name was changed to
Dena Bank Ltd.
In July 1969 Dena Bank Ltd. along with 13 other major Banks was nationalized and is
now a Public Sector Bank constituted under the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970. Under the provisions of the Banking Regulations
Act 1949, in addition to the business of Banking, the Bank can undertake other business
as specified in Section 6 of the Banking Regulations Act, 1949.

Milestones

 One among six Public Sector Banks selected by the World Bank for sanctioning a
loan of Rs.72.3 cores for augmentation of Tier-II Capital under Financial Sector
Developmental project in the year 1995.
 One among the few Banks to receive the World Bank loan for technological up
gradation and training.
 Launched a Bond Issue of Rs.92.13 cores in November 1996.
 Maiden Public Issue of Rs.180 Cores in November 1996.
 Introduced Tele Banking facility of selected metropolitan centers.
 Dena Bank has been the first Bank to introduce:
 Minor Savings Scheme.
 Credit card in rural India known as "DENA KRISHI SAKH PATRA" (DKSP).
 Drive-in ATM counters of Juhu, Mumbai.
 Smart card at selected branches in Mumbai.
 Customer rating system for rating the Bank Services

Mission- DENA BANK will provide its Customers - premier financial services of great
value, Staff - positive work environment and opportunity for growth and achievement,
Shareholders-superior financial returns, Community - economic growth

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Vision- DENA BANK will emerge as the most preferred Bank of customer choice In its
area of operations, by its reputation and performance

YEAR WISE COMPARATIVE PERFORMANCE:-

Performance parameters 2006-2007 2007-2008 2008-2009

Delivery channels& Resource
No. of branch 1135 1160 1184
Total computerized branches 1135 1160 1184
Out of which, Branches with core 13 108 606
Banking
No of ATMs 269 316 387
No. of employees 10120 9957 9883
CAPITAL & RESERVE
CAPITAL 286.82 286.82 286.82
Reserve(Excluding Revaluation Reserve 953 1280 1662
Capital Adequacy Ratio (%) 11.52 11.09 12.07
Business
Total deposit 27689 33943 43051
% Increase 17.22% 22.58% 26.83%
Loans & Advance(net) 18303 23024 28878
% Increase 28.61 25.79 24.82
Investment(net) 9325 10335 12473
% increase 8 10.83 21.29
Loans & Advanceto:
Priority sector 7629 8096 9715
Agriculture 3344 2794 3851
Small & Medium Enterprises 3158 3885 4775
Priority sector Advances in % terms 42.03 43.32 41.55
Financial:
Operating profit 635.35 656.44 726.36
Net profit/loss 201.56 356.79 422.66
Productivity Ratio:
Per employee business 4.58 5.76 7.31
Per branch business 44.76 54.03 66.45
Asset Quality of ratio
% of gross NPA to Gross Advances Ratio 3.98 2.45 2.13
% of net NPA to Net Advances Ratio: 1.99 0.94 1.09

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Review of literature

Can Banks improve customer relationships with high quality online

services?

Author(s): Carmel Herington, Scott Weaven

Abstract:

Purpose – The purpose of this research is to explore the impact of online service quality
on the level of customer delight and on the development of customer relationships.

Findings – Online service quality has no impact on customer delight, e-trust or the
development of stronger relationships with customers. It does have a relationship to e-
loyalty. However, the “efficiency” dimension of online service quality is related to e-trust
and also indirectly to relationship strength through e-trust. The “personal need” and “site
organization” dimensions of online service quality are related to e-loyalty, with “personal

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needs” exhibiting the strongest impact. Customer delight has no relationship to online
service.

The effect of automated service quality on Bank financial performance

and the mediating role of customer retention

Author: Al-Hawari, Mohammed

Abstract:

The impact of automated service quality on Bank financial performance and the
mediating role of customer retention have received little attention, as scholars have
focused on issues of usability and measurement. This study begins by showing the impact
of technology on the way Banks conduct business and proceeds to discuss automated
service quality definitions and the potential influence of automated service quality on
retention and financial performance. A mediating model that links service quality to Bank
financial performance through customer retention in the automated service context is
proposed. The results of this empirical study confirm the role of customer retention as a
mediator in the effect of automated service quality on financial performance. Implications
of the findings are discussed and the limitations of the study and the potential for future
research are considered. Journal of Financial Services Marketing
Robert E.litan (1999) described the introduction and rapid use of ATM as the most visible
revolution in Banking sector. He also supported his claim by the stating.
……ATM offer consume the convenience of Banking in many more location than ever
before indeed ATMs far out number brick and mortar Bank in large part because they are
cheaper to operate than a Bank branch today nearly 2 ,00000 lakhas ATMs are found
through out the country more than the collective no. of branches Banks thrifts and credit
unions
In the 21st century ATM card have become on of the most popular non cash instrument in
the United States and popularity ha been exclusively growing around the world.
As Stuart E.weinr (1999) pointed out:

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The total number of ATM transaction has more than doubles over the last ten year and is
estimated to reach near 11 billion again this year. And there are sign that ATM volume
may be peaking, ATM access continued grow .the total number of ATM terminals ha
tripled the over the last ten years.

The adoption of electronic Banking services in developing countries –

The Romanian Case

Author: Dospinescu Octavian , Rusu Daniela.

Abstract:
The development taking place in information and communication technology is affecting
the financial institutions worldwide. This evolution had transformed the way Banks
delivered their services, using technologies like automated teller machine (ATM) ,
phones, the Internet , credit cards , and electronic cash , in this sprit, Banking in Romania
has been undergoing some changes. Many Banks have been investing in internet
technology in order to maintain a competing edge.
This paper presents the various aspects regarding the application of information and
communication technology in the context of a developing national

Can E-Banking services be profitable?

Author : Olga Lustsik

Abstract:
Over the last few years European Banks have been spent billions of Euros on new
electronic channels. However, after some year of excitement it was clear that the Banks
long awaited skyrocketing profit from this area would not be netted. Estonian Banks have
also invested in expanding and improving the IT systems and a number of new e-Banking
services have been developed. Until recently most of the pricing decisions for eBanking
services have been made on the basis of the gut feeling as the current financial system
support such analysis. In this article the author explores the implementation techniques of
activity based costing (ABC) in the Banking sector on the example of an Estonian Bank

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in order to analyze the cost structure for traditional and electronic channel transactions.
The article shows how it is possible to implement ABC in Banking and proves
empirically that electronic channels help reduce the costs of both Banks and their clients.

Finding
This section deals with the survey finding related with the question that demanded the
ATM users’ perception about the level of satisfaction with respect to various issues.
Shown in the following table:

Table:1 Level of customer satisfaction with various aspect

Item Non staff users Staff users

Promptness of card delivery 9 10

The performance of ATM 10 11
The service quality of ATM 8 10
personnel
The quality of notes 10 9

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Relative position of Dena Bank 12 12
ATM
Knowledge about the feature of Dena Bank ATM and use of the feature:

Table2: non staff ATM user’s knowledge about the feature of ATM
Knowledge about the Number of users Percentage (%) Use of feature by
feature knowledgeable persons
other than cash
withdrawal
Yes 12 66.67% Yes 15 (83.34%)
No 6 33.40 No 3 (16.66%)

Total 18 100

Table: 3 staff ATM users’ knowledge about the feature of ATM

Knowledge about the Number of users Percentage (%) Use of features by
feature knowledgeable person
other than cash
withdrawal
Yes 12 99.7% Yes 12 (99.7%)
No 1 .3% No 1 (.3%)
Total

Comment on the positive feature of Dena Bank ATM

Table 3: customer comment on positive feature
Feature Non staff customer Staff customer

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 Number Percentage (%) Number Percentage (%)
Cash withdrawal 14 77.78% 12 99.7%
Service quality of ATM 15 83.33% 11 84.4%
personnel
Off shore ATM 14 77.78% 12 99.7%
Time saving 16 93.4% 13 100
Easy to use 14 77.78% 13 100
Prompt card delivery 15 83.33% 10 77.7%
24 hour service in 365 days 16 93.34% 12 99.7%
Account activity enquiry 13 71.7% 11 84.4%
Statement request 15 83.33% 10 77.7%
Safety security 13 71.7% 9 69%
Transfer 12 65.45% 12 99.7%
Deposit /mail deposit 13 71.7% 13 100
Pin change 12 65.45% 11 84.4%
Good decoration & tidiness 16 93.34% 12 99.7%
Enquiry 15 83.33% 11 84.4%
Comment on the uncomfortable feature / issue of Dena Bank ATM:
Table :4 customer comment on uncomfortable feature of Dena Bank ATM
Uncomfortable features Non staff staff
Number percentage Number Percentage
Unsuitable location 16 93.34% 12 99.7%
Poor money quality 17 99.33% 9 96%
Unsecured 13 71.7% 11 84.4%
Machine complexity 15 83.33% 8 60%
Delay in card delivery 16 93.34% 7 53.7%
Card locking 15 83.34% 11 84.4%
Poor service quality 14 77.78% 6 49%
Old fashioned & untidy 15 83.33% 12 99.7%
Machine break down 16 93.34% 7 53.7%

Recommendation made by customers:

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Tbale5: ATM users’ recommendation
Recommendation Non staff Staff

number Percentage (%) number Percentage (%)

New ATM location 17 99.33% 13 100%
Better quality currency 16 93.4% 10 77.7%
Increase of safety feature 17 99.33% 10 77.7%
More users friendly 17 99.33% 11 84.4%
Increase in number of ATM 14 77.78% 12 99.7%
Prompt card delivery 15 83.33% 11 84.4%
Better customer service 16 93.4% 10 77.7%
Facility to pay utility 12 65.45% 12 99.7%
More withdrawal limit 15 83.33% 13 100%
More denominator 13 71.7% 9 69%
Making more attractive decorations 16 93.4% 12 99.7%
The Preference for new location:- According to the nonstaff customers the following are
the most important locations where Dena Bank can set up new ATM booth.

Table 6: Nonstaff Customers’ preference for new location

Location Response Percentage (%)
Thatipur 14 77.78%
Morar 12 65.45%
Bada 16 93.34%

The other locations include Farm gate (10), and Jatrabari (5).
Among the different new locations selected by the staffs, the following are noteworthy:

Table 6: Staff customer’s preference for new location

Location Response Percentage (%)
Thatipur 12 99.7%
Morar 11 84.4%

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Bada 12 99.7%

6.5 Comment on additional facilities by customers:

Here the responondents were requested to comment on whether they want any further
facilities other than ATM such as debit card, credit card, etc. The responses are given in
the following table:
Table 7: ATM user’s comment on additional facilities
Facilities Nonstaff Staff
Number Percentage (%) Number Percentage (%)
Debit card 10 55.5% 5 38.4%
Credit card 4 22.2% 4 37
Both 6 33.3% 5 24.6%
None - - -
Total 18 100 13 100
So the customers want some more facility such as credit card facility to be used in Dena
Bank.

Summary of Finding
The survey finding can be summarized in the following manner:
1. The staff and non staff Dena Bank ATM users (selected on the basis of convenience)
are more than neutral stat in respect of all the criteria selected to determine the level of
satisfaction.
2. The average satisfaction level of staff ATM users is more than that of non staff ATM
users in all respects. And the difference is material in case of their opinion regarding
the performance of Dena Bank ATM. The reasons can be explained blow.
• Use of Branch ATM: - The staffs use facilities of branch ATM more than the off-sit
ATMs. The reason is obvious. They work in particular branch. After the end of the
day, or at a time of need if they are at the office, they use the branch ATM facilities.
The branch ATM facilities are generally better than the booth ATM facilities. Because
whenever the branch ATM facilities are out of order or some sort of problem arises

26 | P a g e
 with respect to branch ATM, the branch staffs can take quick action to bring the
facility in order or to solve the problem.
• Psychological reason: The staff respondents hold good impression about their
organization. So whenever they were requested to comment on their satisfaction levels
in various aspects of ATM, they generally provided positive responses which are
consistent with their mental setup.

3. The main problem areas of Dena Bank are listed blow:

• Machine breakdown: About 65% nonstaff 38% staff ATM users feel that machine
breakdown is the main problem of Dena Bank ATM. Machine breakdown
generally occurs for the following reasons:
• Poor quality notes: If the notes supplied in the ATMs are poor quality, the chance
of machine breakdown increase. Because the sensor that picks the notes from the
cassette can’t operate smoothly.
• High frequency of us: the frequency of use is very high.
• Unsuitable location: About 50% customer and 30%staff ATM users feel that the
location of ATM is unsuitable And20% is in confusion;
• Poor currency Quality: 80% staff and 60% customer are satisfied.

• Machines complexity: 20% staff customer and 80% customer believe that
machines are complex.

• Delay in card delivery:

1) Wrong address of the customer.
2) Incomplete address of customer.
3) Fictitious address of customer

4. New ATM location: At present number of location are not sufficient to meet the need
of growing customer of ATM users.
5. More users’ friendly machine About 40% of the staff customer and 60% of staff
customer think that the ATM hold be moe users friendly.
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6. Increase the safety feature
7. Uses the the transparent glass.
8. Provide the licensing Arms to the security person of ATM.

Concluding remark
From the above analysis, it is evident that Dena Bank ATM has many positive feature but
the customers selected on the basis of conveniences are not well aware of all these .
These customers are also facing different types of problem with which ATM is directly
related .machine complexity machine breakdown poor quality notes etc, not directly
related with the Dena Bank ATM such as safety –security decoration to staff and non staff
customer ATM users have differently level of satisfaction with various aspect of ATM.
the most important thing is that at every aspect the selected customer have more tan
neutral level of satisfaction.

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The most important thing is that at every aspect the selected customer has more then
neutral state of satisfaction. Though this study cannot provide conclusive evidence. but
the management of Dena Bank should considered the finding and take all necessary steps
for future research and if they think that the customer of Dena Bank ATM,s better
currency quality ,increase of safety security ,introduction of credit card ,debit card etc.to
gain more customer base and achieve more customer satisfaction

References

1. Anderson, D.R., D.J. Sweeney, T.A. Williams (2000), Essentials of Statistics -

Statistics for Business and Economics (New York: South-Western College
Publishing, Second Edition): 81-82.
2. “ATM Cards,” available at http://www.the beehive.org/money/ATM-cards.asp
(accessed on 25.09.05)
3. “Automated Teller History,” available at http://www.ATMmachine.com/ATM-
inventor.hml (accessed on 22.08.05)

29 | P a g e
4. “Automatic Teller Machine,” available http://en.wikipedia.org (accessed on
30.08.05)
5. “Automatic Teller Machine,” available at http://www.frodop.com/ATM/(accessed
on 22.08.05)
6. Bala, S.K., M.A. Yusuf, and A. Chowdhury (2005), “Use of Credit Cards in
Bangladesh: Enabling smart Business in the Digital Age,” Journal of Marketing
(Dhaka University), forthcoming.
7. Cabas, M.G. (2001), “ A History of the Future of Banking: Predictions and
Outcomes, “ available at http://www.hass.berkeley.edu/finance/CMWpaper.pdf
(accessed on 29.09.05)
8. Octavian D, Daniela R, “ The adoption of electronic Banking services in
developing countries—The Romanian Case”.
9. Dr. Islam R., Dr. Sheel S. “ Customer satisfaction of ATM service : A Case Study
of HSBC ATM”
10. Ghosh, S.N., J.C. Shukladas, and M. Ahmed (1981), Choice of Bank, customers’
Service and Credit Policy, a case study of the Consensus among Bank-Executive,
depositors and borrowers of Nationalised Commercial Bank of Bangladesh,
Dhaka: Bureau of Business Research University of Dhaka.
11. Govers, Cor P.M. (2001), “ QFD not just a tool but a way of quality
management,” International Journal of Production Economics, Vol. 69: 151-159.
12. Gupta, S.P. (1994), Practiacal Statistics (New Delhi: S. Chand & Company Ltd.).
13. “The History of ATM,” available
http://inventors.about.com/library/inventors/blATM.htm (accessed on 29.09.05).
14. “Timeline: The ATM’s history,” available at http://www .ATMmarketplace.com/
(accessed on 2.10.05)
15. Zikmund, W.G. (2003), Business Research Methods, USA: Thomson South-
Western.
16. Lustsik O. (2004)“ Can EBanking services be profitable?”

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 Appendix

Use of ATM and the level of satisfaction

Location: ………………

Point 1 2 3 4 5

Questionnaire

Please put tick (√) comment on the following as appropriate:

1. Level of satisfaction with

 The promptness of card delivery: 1 2 3 4 5

 The performance of Dena Bank 1 2 3 4 5

 The service quality of ATM personnel
(Query response, timely action on request etc.) 1 2 3 4 5
 The quality of notes (currency)
1 2 3 4 5

2. Do you know all the features of Dena Bank? YES NO

3. If yes, have you tried ever to use the facilities other then
YES NO
cash withdrawal?

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4. If no, what is the reason behind your reluctance?
o It is cumbersome
o I don’t like it
o Branch service is better
o It can’t provide me required information
o It is time consuming
o Any other-please specify
o
o
o
5. what are the Positive features of ATM service of Dena Bank.
o Prompt card delivery
o Easy to use
o Satisfied with the service quality of ATM personnel
o Time savings
o 24 hour service in 365 days
o Off-shore ATM
o Cash withdrawal
o Account activity enquiry
o Transfer
o Deposit/Mail deposit
o Statement request
o PIN change
o Enquiry
o Safety-security
o Good decoration & tidiness
o Any other –please specify
•
•

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 •
•
•
•
6. What are the uncomfortable features/ issues of Dena Bank
o Poor money quality
o Card locking
o Delay in card delivery
o Machine complexity
o Machine breakdown
o Unsuitable location
o Unsecured
o Old fashioned & untidy
o Any other – please specify
•
•
•
•
7. What are your recommendations to improve Dena Bank ATM services?
• More user friendly machine
• Better customer service
• Prompt card delivery
• New ATM locations
• Increase in number of ATM (which location)
• More withdrawal limit
• Facility to pay utility
• Increase of safety security
• Better currency quality
• Making more attractive – decorations

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 • Any other – please specify
•
•
•
•
8. Other than ATM, do you want
 Debit card
 Credit card
 Both
 None
 Any other – please specify
•
•
•
•
YES NO
9. Do you use the ATM service of any other Bank?
10. If yes, how can you compare the ATM service of Dena Bank with the same of
any other Bank in Bangladesh?

Very poo Average Good Very

Thank you very much for your time, cooperation & Patience
poor r good

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