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Charu Atm
Charu Atm
Abstract:
This paper presents the impact of ATM on customer satisfaction. This is a comparative study of three
major banks i.e. State Bank of India, ICICI bank and HDFC bank. This paper has been divided into two
sections. First section presents the introduction of ATM, brief history of three Banks compiled through
the literature available in the field. It also includes the review of the various services provided by the
three banks under study. Second section presents the result obtained on the basis of the data collected
for the three banks. A sample of 360 respondents equally representing each bank has been taken through
questionnaire. Data has also been collected through interview also. Then various statistical tools have been
used accordingly to compile the result.
KEY WORDS: ATM, Customer satisfaction, Fees, Problems, ATM services, Banks.
Inter-connectivity of ATM Networks for of India was constituted on 1 July 1955. Today,
enhanced access SBI has a phenomenal 9,559 branches and its
ATM network is spread across 6,473 of its own
Inter-connectivity of ATM Networks provides locations& total 8,000ATMs including of those of
access to the customers to use any ATM in the its associate banks.
country irrespective of the bank with which the
customer is banking. There are a number of ATM • State Bank of India is a successor to Imperial
network switches such as CashTree, BANCS, Bank of India, which was established in
Cashnet Mitr and National Financial Switch 1921.
(NFS). In addition, most ATM switches are also
linked to VISA or MasterCard gateways. • The bank came into being on 1.7.1955 through
the State Bank of India Act, 1955.
Charges levied by banks
REVISED FEE STRUCTURE FOR ATMs • States of India joined the State Bank Group
Service Charges as subsidiaries under the State Bank of India
For use of own
ATMs for Free (with immediate effect)
(Subsidiaries Banks) Act, 1959.
any purpose
For use of other
bank ATMs
• State Bank of India has the following seven
Free (with immediate effect)
for balance Associate Banks (Abs) with controlling
enquiries interest ranging from 75% to 100%.
* No bank shall increase the charges prevailing
as on
December 23, 2007 (i.e. the date of release of State Bank of Bikaner and Jaipur (SBBJ)
For use of other
Approach Paper on RBI website)
bank ATMs
* Banks which are charging more than Rs.20
for cash with-
drawals
per transaction shall reduce the charges to a State Bank of Hyderabad (SBH)
maximum of Rs.20 per transaction by 31-Mar-
08
* Free - with effect from April 1, 2009. State Bank of Indore (SBIr)
Providing relief to millions of users, the RBI State Bank of Mysore (SBM)
has also said from April 1, 2009, customers using
the inter-bank ATMs (ATMs of other banks) for State Bank of Patiala (SBP)
cash withdrawals or balance enquiries will not be
charged any fee. As of now, customers have to State Bank of Saurashtra (SBS)
pay Rs 50 as annual charges for using the ATM
facility of their bank, while charges ranging from State Bank of Travancore (SBT)
Rs 20-Rs 50 per transaction are levied for the
inter-bank ATM transactions. Customers are also ICICI Bank India is the largest private sector
paying anything between Rs 10- Rs 20 for making bank. Its banking products and financial services
balance enquiries through inter bank ATMs. are some of the superior ones. The reach and
market of ICICI Bank is unmatched in India as yet.
Brief History Of The Banks It offers a countrywide network of 1,000 branches
and 3,680 ATM’s reaching out to your doorsteps.
The State Bank of India (SBI) is the oldest
and largest bank in the country. Its origins go • Founded by the Government of India in
back to the first decade of the 19th century, when the 1960’s, it was one of the three financial
the Bank of Calcutta was established on 2 June institutions set up to finance large industrial
1806. The bank got its present name after an Act projects
of Parliament in May 1955 and the State Bank
• Earlier known as Industrial Credit and explained that banks in India have traditionally
Investment Corporation of India, it did not claimed the strength of their networks based on
entertain retail customers and was thus not a the number of branches. The logic was that the
bank in the literal sense. increase in branch network corresponds to more
transactions, more business and therefore more
• It was in the 1990’s that a subsidiary was set profits. Not unlike the rest of Asia, where branch
up in the name of ICICI Bank to take up retail rationalization first started in Japan and then
banking services including deposits, credit spread across the continent, this logic is steadily
cards, loans etc. getting reversed in India.
Kaul Urvashi (2007) in his article, “ATM: The
• In 2002, the ICICI Bank was merged back Power of Cash” explained the importance and
with the ICICI and the result was the ICICI benefits of ATM, the players in the Indian market
Bank Limited operational now. and presented various satistical data concerning
the growth of ATM.
The Housing Development Finance Manager FSDNCR Corporation India Pvt.
Corporation (HDFC) Bank is one of the first banks Ltd. (2008) in his article, “ATMs: Changing
in India to offer its customers the bill pay facility. Fundamentals” stressed that he Indian ATM
HDFC Bank is also a leader in online purchase industry has seen explosive growth in recent times
(using the HDFC Bank DirectPay product). The and Banks have committed to substantial capital
bank also offers its customers a free personalized outlays on ATM deployment, recognizing the
payable-at-par chequebook and services like real significance of the 3 Ms – Maintenance, Monitoring
time gross settlement and national electronic fund and Management – of the ATMs to make the self
transfer. service channel a reliable and profitable one.
attempt is made to achieve the following specific 2. There is no significant difference in the
objectives: factors affecting the choice of ATM in SBI,
ICICI & HDFC Bank.
1. To analyze the present ATM facilities
provided by SBI, ICICI & HDFC Bank. 3. There is no significant difference in the
impact of ATM on customer satisfaction in
2. To examine the factors affecting the choice SBI, ICICI & HDFC Bank.
of ATM.
4. There is no significant difference in the post
3. To examine the impact of ATM on customer purchase behavior of customers in SBI,
satisfaction by appraising the problems faced ICICI & HDFC Bank.
by the customers.
Data Collection
4. To analyze the post purchase behavior of
customers regarding the different banks Primary data has been collected through
under study. questionnaire. A sample size of 360 respondents
has been taken including 120 for each bank i.e. SBI,
Hypothesis ICICI & HDFC bank. A personal visit has been
made to these banks to know about the branches &
1. There is no significant difference in ATM ATM facilities provided by these banks.
facilities provided by SBI, ICICI & HDFC
Bank
Data Anaysis
60%
40%
a) SBI
b) ICICI Bank
Level (MCS) 30%
c) HDFC Bank
20%
0%
examined on the basis of three variables i.e. Satisfaction Level
often, rarely and never have been taken and they Satisfaction level for Problem s
Table-2 73%
82%
79%
Post Purchase Behavior
78% 79%
77%
76%
77%
75%
76%
83% 74%
a) SBI
73%
b) ICICI Bank
73%
c) HDFC Bank 72%
71%
70%
82% a) SBI b) ICICI Bank c) HDFC Bank
Fig.-4
Fig.-3
Table-4 & fig.-4 shows clearly that in SBI
Table 3.1 and figure 3 envisages the coded material satisfaction level is highest, 2nd is ICICI
results after giving weightings. The highest rating and 3rd is HDFC.
is of HDFC with 83%, then ICICI is having 82% So, material customer satisfaction is highest
and SBI is third with 76% as for as post purchase in SBI, then ICICI and last is HDFC among the
behavior is concerned. three banks. This result is also supported by the
secondary data. For example, according to the
Overall Material Customer Satisfaction Outlook Best Bank Award, which was given in
Level Nov. 2007, SBI is the 1st largest bank in India,
ICICI is the 2nd largest bank and HDFC is the 3rd
After considering all the elements of customer largest bank in India.
satisfaction they are combined together to
find out the overall customer satisfaction level
in materialistic terms. The overall customer Abstract Customer Satisfaction
satisfaction level is the combination of three Level (ACS)
parameters i.e. fee charged, frequency of the
problems faced and the post purchase behavior. Abstract customer satisfaction level has been
examined through the deep study of the various
Table-4 parameters of customer satisfaction. Three
parameters have been chosen for this purpose i.e.
Prob- Post Pur- % of
Name of Fee factors affecting choice of ATM, the purpose for
Charged lems chase Be- Total total
the Bank Faced havior marks which ATM is often used and the problems faced
a) SBI 414 2658 912 3984 79% while using ATM.
Cash/Cheque Very
deposit often
Often Rarely Sometimes Never 1. Post Purchase Behavior
Request a
cheque book
or account
Post purchase behavior has been analyzed
statement through two statements. If they are agree with
6 30 12 12 60 these statements then their customer satisfaction
a) SBI
(5) (25) (10) (10) (50)
12 18 36 24 30 level is rated to be high. There are five degrees
b) ICICI Bank
(10) (15) (30) (20) (25) for each statement and they are rated as 5,4,3,2 &
c) HDFC Bank
36 24 18 18 24 1 accordingly. Post purchase behavior has direct
(30) (20) (15) (15) (20)
relation with customer satisfaction level.
Satisfaction 60%
SBI because people are not facing problems which Level 40%
55 60 70
High degree
due to the fact that mostly people are not using 20%
15 15 15
Medium Degree
Low Degree
services frequently. Thus, according to abstract 0%
SBI ICICI HDFC
customer satisfaction HDFC is at 1st position, 2nd Bank Bank
We can prove the results of ACS with MCS Table-8 & fig.-5 shows clearly that average
also. After considering all the three elements i.e. satisfaction level is highest in HDFC Bank, second
fee charged, frequency of the problems faced and comes the ICICI Bank and the third is SBI.
post purchase behavior, they are coded. Customer
satisfaction of the respondents has assumed to be F-Test
distributed normally. So, the customer satisfaction
of the respondents for these three variables is Further F-test is applied to find out whether the
divided into three categories, below average, difference in the customer satisfaction level of the
average and above average levels. The lower and three banks is significant or not. On the basis of
the upper limits of the average level have been the table-8 above
calculated on the basis of formula:
Table-9
Analysis of Variance
The lower limit of average level= M-1s.d. Sum of Degree of Mean
Sources
The upper limit of average level= M-1s.d. Squares Freedom ( v) Square
Between
4457.19 2 2228.59
groups
Source: Dr. A.B.Bhatnagar; Measurement &
Within
Evaluation, P. 116-120 155.39 6 25.89
groups
The below average, average and above average
levels have been defined as low, medium and high Calculated value of F = 86.07
respectively. The results after using this statistical Tabulated value of F = 5.14
method are as under: Hence the calculated value is more than the
tabulated value, the H 0 is rejected. It means
Table-8 that there is a significant difference between the
Customer Satisfaction level regarding ATM various banks as far as customer satisfaction level
Name of Low Medium High is concerned.
the Bank Degree Degree degree
18 66 36
Conclusion
a) SBI
(15) (55) (30)
It is concluded through this paper that material
b) ICICI 18 72 30
satisfaction level is highest in SBI, then second is
Bank (15) (60) (25)
ICICI Bank and third is HDFC Bank. This is due
c) HDFC 18 84 18 to the size of the respective bank and number of
Bank (15) (70) (15)
years of its establishment. But according to abstract
customer satisfaction i.e. in terms of efficiency Table-9 & fig.-6 depicts that material customer
and performance, HDFC Bank is at 1st position, 2nd satisfaction level is highest for SBI at 79%, 2nd is
is ICICI Bank and 3rd is SBI. The results are also ICICI Bank with 77% and 3rd is HDFC Bank with
shown clearly with the help of table and diagram. 73%. Table also presents that average customer
satisfaction level is highest in HDFC bank with
Table-9 70%, in ICICI Bank it is 60% and SBI is at third
Customer Satisfaction Level place with 55%.
Material Abstract
Customer Customer References
Name of the Bank
Satisfaction Satisfaction
Level Level
a) SBI 79% 55% News updates & Events: ATMindia.com
b) ICICI Bank 77% 60%
Log in………….. Tribune
c) HDFC Bank 73% 70%
Financial Express
Custom er Satisfaction Level
80%
79%
The Economics Times online
70% 77% 70%
73%
60%
60% RBI Monthly bulletin
50% 55%
SBI
40%
30%
ICICI
HDFC
Dataquest: IT Giants 07
20%
Websites of banks