CUSTOMER SATISFACTION OF ATM FACILITY PROVIDED BY

HIMALAYAN BANK LIMITED

BY

Bidhya kunwar

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

At the

Sainik Awasiya Mahavidhyalaya

Tribhuvan University

Bhaktapur

April 2017
 STUDENT DECLARATION

This is to certify that I have completed the Summer Project entitled “Customer
Satisfaction Of ATM facility provided by Himalayan Bank Limited” under the guidance
of Mr. Krishna Prasad Gwachha in partial fulfillment of the requirements for the degree
of Bachelor of Business Administration at Faculty of Management, Tribhuvan
University. This is my original work and I have not submitted it earlier elsewhere.

Date: Signature:

2
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Customer Satisfaction Of ATM facility
provided by Himalayan Bank Limited” is an academic work done by “Bidhya Kunwar”
submitted in the partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information presented by
him/her in the summer project report has not been submitted earlier.

____________________
Signature of the Supervisor
Name

Date

3
 ACKNOWLEDGEMENT

This project work has been prepared for the partial fulfillment of requirement of BBA
degree. It’s my great honor to get assigned this project work. This project work is based
on the customer satisfaction of ATM facility of Himalayan Bank and has made me
familiar with the ongoing trend of ATM services as the concept of E-banking has been
emerging in the contemporary banking business.

Firstly, I would like to express my sincere gratitude to my report supervisor, Mr. Krishna
Prasad Gwachha for his consistent help and support in completing the report. Indeed, his
guidance, co-operation, encouragement is very admirable and praiseworthy. Like-wise, I
am equally thankful to my all teachers and friends for their moral support and
encouragement.

I am also grateful to Himalayan Bank Limited for providing me the necessary

information, co-operation and support necessary for the completion of the report. I
acknowledge further comments and suggestions.

Bidhya Kunwar

April 2017

4
 TABLE OF CONTENTS

Contents
Student Declaration II

Certificate From The Supervisor III

Acknowledgement IV

Table of Contents V

List of Tables VII

List of Figures VIII

EXECUTIVE SUMMARY IX

Chapter I: Introduction 1

1.1. 10

1.2. 12

1.3. 12

1.4. 13

1.5. 14

1.6. 17

1.6.1. 18

1.6.2. 18

1.6.3. 18

CHAPTER II: DATA ANALYSIS AND PRESENTATION 10

2.1. 19

2.2. 21

2.2.1. 22

5
2.3. 24

2.3.1. 24

2.3.2. 28

2.3.3. 30

2.3.4. 31

2.3.5. 33

2.3.6. 34

2.3.7. 36

2.3.8. 37

2.3.9. 39

2.4. 40

2.4.3. 40

2.4.4. 44

Chapter III: Conclusion and Action Implication 36

3.1. 45

3.2. 45

References A

6
 LIST OF TABLES

Demographics of the participants 10-11

Consolidated Response of the participants and the satisfaction level 16

Mean and Standard Deviation of the responses 16

Factors and special attributes 30

Mean and Standard Deviation of the attributes of factors 31-32

a. Efficiency of the service 31

b. Quality of the service 31

c. Accessibility of the service 31

d. Reliability of the service 31

e. Complaint resolution 32

f. Convenience of the service 32

g. Service cost 32

h. Perceived security 32

7
 LIST OF FIGURES

Response for efficiency of service 17

Response for quality of service 18

Response for Accessibility of service 18

Response for Reliability of service 19

Response for Complaint Resolution 20

Response for Convenience of the service 20

Response for Service cost/charges 21

Response for perceived quality 22

8
 EXECUTIVE SUMMARY

The objective of this research work is to study the level of customer satisfaction in ATM
service provided by the Himalayan Bank Limited. This research presents the impact of
different factors on the customer satisfaction in ATM. This is a descriptive research,
which has documented the level of agreement and disagreement of the ATM users on
various factors related to ATM service which has eventually increased the level of
customer satisfaction. The sample size of 102 ATM users was randomly selected and
responses were collected through personally administered questionnaire. The responses
from this sample size were analyzed using statistical tools like MS- Excel, Mean, and
Standard Deviation. The results from the analysis show that the level of customer
satisfaction is high in the ATM users of Himalayan Bank. The bank has not been able to
provide the ATM service as per the expectations of people. ATM service of HBL is
considered as reliable service among the users due to various technical and operational
efficiency. This paper also concludes that there has been proper monitoring in ATM
service from the side of bank management. Bank has taken ATM service as a tool with
high potential for competitive edge. Bank proactively monitors understanding the
customer expectation from ATM service. ATM service has a high potential which might
lead to satisfaction of customer towards the Himalayan bank.

9
 CHAPTER I: INTRODUCTION

1.1. Context Information

Banks and financial institutions are the economic pillars of a nation that channelize the
scattered funds and services from surplus unit to deficit units. It has played a pivotal role
in mobilizing the savings and enhancing the economic development. On the passage of
time, technological innovations have influenced the world in every sector. The modern
banking operation is also influenced by the new technology. The emerging trend on the
banking sector includes: internet banking, mobile banking, branchless banking services,
any branch banking services, telebanking, use of card services such as debit card, credit
card, ATM card etc. which do not demand for the physical presence of people in bank to
conduct the range of the financial activities.

The history of modern financial system in Nepal began in 1937 AD with the
establishment of Nepal Bank Limited as the first commercial bank of the country. Nepal
Rastra Bank was established in 1956 under the NRB Act 1955. Establishment of the NRB
as a central bank of Nepal was another major step in the development Nepalese financial
system during the formulating phase of the first five years Development plan mid-1950s.
The cooperative bank and the land reforms saving corporations were later merged with
the agriculture Development Bank. The credit guarantee corporation was established in
1974 to provide credit guarantee services to small priority sectors extended by NBL and
RBB. Nabil bank was established as the first joint venture bank in 1984. After
establishment of Nabil Bank as a private commercial bank there has been a huge public
attraction towards the opening of banking institutions of Nepal. During the decade of
2050 B.S, new political conflict came in the existence in the country. As a result several
economic activities were adversely affected.

Modern banking has proven to be the milestone in the economic upliftment in the
developing nation. The roles, responsibilities, and functions performed by the banks are
now vibrant in the market has become very aggressive. ATM is the abbreviation of
Automatic Teller Machine; it is a computerized machine service facility provided by the

10
bank to its customers enabling them to withdraw cash and make payments through its
card. The first ATM was installed in British Bank Barclays in 1967. ATM services have
been one of the growing services in Nepal. The first bank of Nepal to provide ATM
services in Nepal is Himalayan Bank Limited in 1995. Customer satisfaction is one of the
rudimentary requirements of every service oriented business organizations. Kumal and
Singh (2009) had identified the customer satisfaction is one of the major factors
measuring the performance of the banks. ATM services have added value to customers’
satisfaction by providing easy, reliable, and timely services to its customers. Banks now
compete in the sector of providing more reliable services. However, better auxiliary
services such as ATM services, balance enquiry service, Mobile banking, e-banking etc.
have also proven to be crucial in gaining the competitive edge. The interest rate factor,
which is regarded as tool to have a competitive edge over competitive banks is now very
much regulated by the central bank and has lost this competitive edge. The growing
awareness among the people and the appraising development of technology has raised the
needs and expectation of the people from the bank. Customer has become the most
valuable assets for the bank and banks major objective is the satisfy them. Khan (2010) in
his study of Pakistani bank has stated that there is a positive and strong relationship
between ATM service quality and customer satisfaction. Bank has developed various
techniques to meet the expectation of the customers and such techniques are delivered in
the form of various product services. Other than lending, borrowing are termed as
ancillary products /services, which come under the retail banking system. Sawalqa (2012)
shows that privacy, security, cost and lack of training for users affect their usage of ATM.
The number of ATM users is increasingly growing in the modern banking business.
Himalayan Bank Limited is the pioneer bank to introduce ATM services and now in the
present context, almost all the banks are providing it for fulfilling customer requirements
and to remain competitive. However, Mohammad (2010) indicates that convenience,
efficient operation, security, privacy, reliability, and responsiveness are significant
dimension of ATM service quality and that ATM service quality positively contributes
towards customer satisfaction of bank products and services.

The operation and use of ATM services in the financial sector, has contributed a lot in
changing the way in which financial services and products are being delivered to the

11
banks clients. Thus, the development of ATM saw the emergency of some challenges for
the industry as customers keep demanding for better service, while the financial
institutions are very busy searching for the most efficient way by which they can improve
on their service provision. Technology-intensive delivery channels, like Automated Teller
Machines (ATMs), internet banking, tele-banking and mobile banking etc. have created a
win-win situation by extending greater convenience and multiple options for customers
while providing tremendous cost advantages to the banks (Shainesh & Choudhary, 2004).
The technological innovations have to be implemented in banks for its sustainability and
profitability. The banks should focus on customer satisfaction meeting their expectations
about the offered products and services through change and development.

1.2. Purpose of the Study

The main objective of the study is to determine the level of customer satisfaction on
ATM facility provided by Himalayan Bank. The other specific objectives are as follows:

● To determine the perception of customers on the benefits and problems associated

with ATM service.
● To study the factors that determines customer satisfaction on ATM service.

1.3. Significance of the Study

With the development of information technology, the banking operations have been
changing. The use of digital devices and technologies have been increasingly growing in
the modern banking business. This study provides the satisfaction of customers on the
ATM service provided by the HBL bank, which helps in evaluating the digital service
provided by HBL bank and present the benefits of using the ATM service by the
customers. This study will be helpful for all the concerned parties basically the customers
of Himalayan Bank Limited in evaluating the ATM service. It will be fruitful for
Himalayan Bank as the report presents overall scenario of ATM services and axillary
services. ATM services is rapidly growing in Nepal and most banks are providing this
service. Most customers are unaware of ATM services by Himalayan bank eliminating
the confusion among customers. It provides information on the use of ATM services
along with its benefits. This study helps in assessing the ATM services provided by HBL

12
as the customer satisfaction determines whether the services are effective or not. This
study provides information about customers’ preference towards technology. It provides
general analysis of customers’ adherence to technology friendly services. The findings of
the study can help entire banking industry by showing how quality services offered by
ATM service points are essential and its relationship to customer satisfaction. The
conclusions and recommendations of the study can help the banking industry in
identification of weaknesses in the use of ATM system of banking on the ways of
improving its services so that managers can better maintain the weaknesses and
grievances of the customers on the use of ATM. In the current scenario, the problem of
fraudulent activities in ATM is increasing, which has made customers reluctant in using
the ATM services. So, banks have to take some safety measures regarding these problems
instantly, and assure safety and secure banking. This study can also to be of great
importance to future scholars who will pursue research in fields related to ATM system
of banking and service satisfaction (Delete this line; it is self-understood). Thus, this
study provides insights to bank managers and personnels regarding the quality of its
services and taking corrective action on time to gain high degree of customer’s
satisfaction, which is an important determinant of bank’s profitability.

1.4. Limitation of Study

The proposed study has the following limitations.

● The research was conducted within area around Kamalpokhari head office and
Samakhusi branch only.

● The customers who were surveyed might not truly represent the service
satisfaction level.

● This report is prepared in strict time bound. So, report does not cover all the
aspects of ATM customer satisfaction.

● There is no any exactness in the response of customers. So, it’s difficult to trace
out the accurate perception of customers.

13
1.5. Literature Survey

Banking industry is service oriented industry. Service proliferation, technological

advancement, competition, globalization etc. have changed the course of how banks
function. The changing roles of modern banks have one thing in common, Customers.
Customers and their satisfaction is core business of any banking institutions. All the
diversification in services provided is induced by the customers and for the customers.

Technology has supported the rapid expansion of ancillary products such as mobile
banking, ATMs, Phone banking, e- banking etc. but along it has raised the overwhelming
expectations among the people decreasing the satisfaction level.

Engagement is one of the parameters which measure the degree of customer satisfaction
on the services provided by the banks. Regular use of service provided signifies that the
customers are satisfied. Literature provides support to the idea that pleasant experience of
automated services provides enhanced value to the customers and attracted them to
undertake improved business with their banks (Zhu et al., 2002).

The study has identified that convenience, efficient operation, security and privacy,
reliability and responsiveness positively and significantly affect customers’ perception of
ATM service quality. ATM service quality also relates to the ability of the bank staff to
provide the agreed services timely, accurately, dependably and promptly. Customers
prefer to resolve their complaints expeditiously (Karjaluoto et al., 2002). Gerrard and
Cunningham (2003) found that staff response to customers’ ATM-related needs influence
their perception about service quality.

Wan et al. (2005) discovered that the accuracy of transactions’ information was a major
predictor shaping customers’ perception of ATM service quality. Tan et al. (2003) found
that accuracy of transactions’ information aspect positively and significantly contributes
toward customers’ perception of quality. The literature provides strong support that
reliability is an essential determinant of customers’ perceived service quality and
positively relates to customers’ use of ATM services (Polatoglu & Ekin, 2001; Fassnacht
& Koese, 2006).

14
The responsiveness is crucial to sustain service quality and facilitates building long-term
relationship between service provider and the customers (Long & McMellon, 2004;
Bauer et al., 2006).

Al-Hawari and Ward (2006) compiled a list of five major items about ATM service
quality that include convenient and secured locations, functions of ATM, adequate
number of machines and user-friendliness of the systems and procedures. These items
constitute important aspects of ATM service quality.

Joseph and Stone (2003), through focus group study in the USA, found that easy access
to location, user-friendly ATM and security are important factors that influence majority
of bank customers’ perception of ATM service quality

Mcandrews (2003) identified that secure and convenient location, adequate number of
ATM, user-friendly system and functionality of ATM play important role in customers’
satisfaction. While, Joseph and Stone (2003), Mobarek (2007) and Dilijonas et al. (2009)
mentioned that adequate number of ATMs, convenient and secure location, user-friendly
system, speed, minimum errors, high uptime, cash back-up, cost and service coverage are
essential service quality aspects of ATM. Lovelock (1996) stated that the ATM
technology customizes service offerings, reduces waiting time for customers, serves as an
alternative channel for service delivery and provides vital information needed by
customers in the shortest possible time.

The ATM consists of three very important parts, namely the hardware, software (the
running program) and the communication modules for the transaction processing to be
completed. In order for a bank to have an uninterrupted ATM service operation, it must
have a very efficient internet service provider, reliable electric power supply from both
the national grid and stand by generators and modern ATM hardware and software.

The ATMs are normally installed both within and outside the bank premises such as fuel
filling stations, shopping malls, restaurants, airports, school campuses etc. The ATM
provides uninterrupted 24 hour service to the bank customers. Some modern ATM s have
incorporated features such as biometric technology which involves obtaining ATM
services by the use of finger prints of the account holder other than the use of ATM cards.
This technology provides extra security to the customer as without the customer

15
biometric data, transactions on his/her accounts via the ATM would not be possible. Most
modern ATMs are also now incorporated with cash deposit features as well as utility
payment features such as cellular talk time top up, water and electricity payment for
prepaid customers. The ATM screen can also serve as an advertising space for banks to
advertise their products. In 2013, Gallup U.S. Retail Banking Survey signified those
customers who are engaged and satisfied from their banking institution have 83%
likelihood to use the new product launched by their banks and the percentage is 45% for
the customer who is satisfied only. (Glover, 2015, p. 3)

Producers and marketer of the services of the bank try to keep their customer satisfied as
keeping the current customer is beneficial than spending additional resources to attract
potential new customers ( Sabir, I.R et al. 2014).

Kumbhar (2011) aimed at comparative investigation of the customer satisfaction in ATM

service in public and private sector banks, concluded that private sector banks are
providing more satisfactory ATM service than public sector banks.

These factors include costs involved in the use of ATM, and efficient functioning of
ATM. Al-Hawari et al. (2006) compiled a list of five major items about ATM service
quality that include convenient and secured locations, functions of ATM, adequate
number of machines and user-friendliness of the systems and procedures. Pandian and
Sharma (2012) said that in this modern world where money plays an important role for
survival ATM helps the people to take money whenever needed by them and also during
emergency conditions.

The quality of overall services provided is the primary factor that derives customers to
leave their banks (“Sell the Emotions,” 2015, para. 2). Quality of the service is the prime
factor that drives customers to maintain relationship with the banks. Customer
satisfaction is directly related to the services provided by the banks. The study by Harpal
and Singh (2013) revealed that the level of customer satisfaction varies across different
type’s services offered by banks and the level of expectations of the customer. This holds
true for most of the customers having relation with the banks.

Providian Financial in late 1990’s marketed their credit card to consumer which resulted
dramatic growth of company’s sales and market share. Customer opened accounts and

16
transferred their credit balances to the company (Lubin, 2015, para. 4). Introduction of
such ancillary product like credit card eased the customer by providing the financial
security and the customers were highly satisfied. Later other companies adopted this
credit card facility for the customers. American Customer Satisfaction Index (ACSI) has
set variety of financial services provided by the banks as a benchmark for customer
satisfaction. In a press release report of J.D Power (2015), Jim Miller, senior director of
banking at J.D. Power stated that the satisfaction with the mobile banking and ATMs is
dropping as customer expectations are outpacing technology improvements. The
perceived ease of use and perceive accessibility of ATM service had positive perception
among the customers (Idris, 2014). The study by Verma, (2014) concluded that comfort
and convenience is very important business that majority of the respondent are
dissatisfied with the ATM. Islam (2014) on their report concluded that the banking
authority should give more devotion to consider the recommendations relating to
complaint book, network capacity, sufficient number of ATM booth, cost and fee charged
and available cash in ATM enhance customer satisfaction customers’ satisfaction level on
ATM services in order to survive in the competitive world. Dhungel and Acharya (2011)
under took a study on perception of bank customers towards automated teller machines
service quality. This study was conducted in Jorpati VDC of Kathmandu. This study was
conducted to know the level of awareness of ATM services and identify the problems and
prospects regarding the use of ATM.

1.6. Research Methods used for Data Collection and Analysis

This research was conducted generally to measure the level of customer satisfaction and
to understand the factors that cause the satisfaction. This research is a descriptive
research. Descriptive research design generally provides the information about the
phenomenon and presents the view of the participants towards the related topic. Here, the
level of satisfaction in various independent factors is measured to measure the overall
customer satisfaction in ATM service provided by the Himalayan Bank Limited. This
research measure the level of relation between the variable. This research deals with the
various factors affecting the customer satisfaction level so this research will also provide
the essential information on the factors and perception of the customer towards those

17
factors. This knowledge about the factors and customer s will help to enhance the
operation of the organization.

1.6.1. Population and Sample

The population of this study is all the customers of the Himalayan Bank Limited who
are using ATM services. For the sample, randomly 102 ATM users were been selected
for the study. The questionnaires were personally administered so the response rate is
100%.

1.6.2. Sources of Data

The data were collected through the structured questionnaire and the survey was
conducted under personal administration. The questionnaires were extracted from
various research work and articles done on the similar topic relevant to Nepalese context.

1.6.3. Statistical Tools

The data were collected through the questionnaire. Questionnaires were distributed to
the ATM service users. The responses were collected from the ATM users at the head
office of Himalayan Bank Limited at Kamalpokhari and Samakhusi Branch of
Himalayan Bank Limited.

The questions were structured in three grading scale and it also has some multiple choice
questions for broader evaluation. The questionnaire was analyzed using Microsoft Excel.
The frequency, mean, standard deviation, coefficient of variation were used to analyze
the data and extract the solid conclusion.

18
 CHAPTER II: DATA ANALYSIS AND PRESENTATION

1.1. Organization Profile

Himalayan Bank Limited was established in 1993 in joint venture with Habib Bank
Limited in Pakistan. Despite the tough competition in the Nepalese sector, Himalayan
Bank has been able to maintain a lead in the primary activities for loan and deposits.
Himalayan Bank Limited holds of a vision to become a leading bank of the country by
providing premium products and services to its customers that ensuring attractive and
substantial return to the stakeholders of bank.

Himalayan Bank competition is increasing as the new banks come up with the cheaper
and attractive products. Even after so much of competition, HBL is one of the most
sought banks. Its loan portfolio shows that 7% of the total loan market is captured by
HBL as per the NRB report. HBL has 12% coverage on the manufacturing sector in terms
of amount. It has been providing competitive products at competitive prices. HBL is not
one of the players who fight solely on price. It has a brand name and customers consider.
HBL, to be trustworthy and they bank on HBL because of this itself.

Some of the new products brought in by competitors are low balance accounts, Banks
have come up with deposit schemes. Some of the new products brought in by competitors
are low balance amounts. Banks have come up with deposit schemes where the customers
can open account with minimum balance of Rs1 or even Rs1 and 0. With the change in
technology, banks more than ever felt the need for banking convenience for their clients.
Now, customers can have access full control over the accounts 24 hours 7days a week
over the internet.

Himalayan Bank has developed a special loan package mean just to suit small and
medium sized enterprises. Customers can open account for minimum balance 0. HBL
came up with this product to counter with low balance of accounts. In valley, there are
branches 17 branches of HBL and 26 outside the valley. There are 48 HBL ATM in
Kathmandu valley and 28 outside the valley. HBL introduced several new products and
services. Millionaire Deposit Scheme, Small and Medium Enterprises Loan, Pre-paid
Visa Card, International Travel Quota Credit Card, Consumer Finance through Credit

19
Card and online TOEFL, SAT, IELTS, etc. fee payment facility are some of the products
and services. HBL also has a dedicated offsite ‘Disaster Recovery Management System’.
Looking at the number of Nepalese workers abroad and their need for formal money
transfer channel. HBL is not only a Bank, It is committed Corporate Citizen.

Today, the Himalayan Bank has one of the largest ATM networks in the country. The
number of branches has grown at a steady pace. To increase customer’s service base and
tap new businesses in these emerging markets, banks have invested heavily in cutting-
edge technology to complement the business capability, with the understanding that
technology in today’s world has become a necessity as a driving force. In line with this,
banks have upgraded software to the T24r8 version of TEMENOS. The card business has
expanded rapidly and the Bank today offers all forms of cards services for its customers.

Corporate Social Responsibility (CSR) holds one of the very important aspects of HBL.
Being one of the corporate citizens of the country, HBL has always promoted social
activities. Many activities that do a common good to the society have been undertaken by
HBL in the past and this happens as HBL on an ongoing basis. Significant portion of the
sponsorship budget of the Bank is committed towards activities that assist the society as
large.

The Bank’s Vision:

Himalayan Bank Limited holds of a vision to become a Leading Bank of the country by
providing premium products and services to the customers, thus ensuring attractive and
substantial returns to the stakeholders of the Bank.

The Bank’s Mission:

The Bank’s mission is to become preferred provider of quality financial services in the
country. There are two components in the mission of the Bank; Preferred Provider and
Quality Financial Services; therefore we at HBL believe that the mission will be
accomplished only by satisfying these two important components with the Customer at
focus. The Bank always strives positioning itself in the hearts and minds of the
customers.

The main objective of HBL is to become the Bank of first choice.

20
Awards and Recognitions received by Himalayan Bank Limited are as follows:

● Blood Donation-Certificate of Appreciation 2011

● Clean up the world- Certificate of Appreciation.2010
● Best presented accounts (BPA) and corporate government disclosure Award 2008
● Best presented accounts (BPA) 2008
● The Bankers Alman world ranking 2003
● Federation of Nepalese chambers of commerce and industry.(FNCCI) National
excellence Award 2003

NOT NEEDED???

Table 2.1: Deposit system of Himalayan Bank limited

Deposit Interest Rate Minimum Balance

Fixed Deposit 10.5% 100,000

Saving Deposit

Premium Saving Deposit 2.75% 50,000.

Super Premium Saving 3% 100,000

Normal Saving Account 1% 2,500

Woman Saving Account

Nari Bachat Khata 2% 1,000

Source: Annual report of Himalayan Bank 2015

1.2. Respondent Profile

There were altogether 102 responses were collected from the participants with the help of
structured questionnaire. The survey was conducted with one to one approach with the
participants. Every questionnaire was filled with proper interaction. Therefore, the
response rate is 100% and the analysis is based on the responses collected. As the use of
ATM service is growing day by day, it is important to know about their customer’s

21
perceptions and their thinking about its various features and their problem while using
ATM services.

1.2.1. Demographics

There were 102 people surveyed for the research work. The survey was conducted among
the ATM service users of Himalayan Bank Limited. The participants were randomly
selected. Among the participants who were surveyed, 53.1 % were male and 43.6 % were
female service users. Similarly, 43.13 % of the participants were students and of the total
49.02% of the Participants were of 23-30 age groups. With regards to level of education,
46.07% of the participants were Master Degree students and 40.19% were Bachelor
Degree students. 65.68% of the Participants were using the ATM service in between 1 to
5 years. The following table consist the detail composition of the participants:

Table 2.2: Demographic of participants

Particulars No. of Respondent Percentage

Gender
Male 55 53.9

Female 47 46.1

Total 102 100

Education Level
Intermediate 13 12.74

Undergraduate 41 40.19

Graduate 47 46.07

Other 1 1

Total 102 100

Occupation
Student 44 43.13

22
Professional 22 21.57

Business 24 23.53

Government Officer 7 6.86

Others 5 4.91

Total 102 100

Age Group
18-22 31 30.39

23-30 50 49.02

31-39 17 16.67

40+ 4 3.92

Total 102 100

Tenure of ATM usage
Less than a year 19 18.63

1-5 Years 67 65.68

5-10 Years 16 15.69

Total 102 100

Customer satisfaction is dependent on various factors. In this study, 3 factors and total
of 32 specific attributes of the factors were studied to measure the satisfaction level. The
level of agreement and disagreement is determined for each attributes to know the level
of satisfaction.

23
1.3.Data presentation

1.3.1. Measurement parameters of customer’s satisfaction

Literature supports for the primary data which verifies the findings through the primary
perceptual questionnaire with the findings of research work with secondary data,
questionnaire based on perception is prepared. For the purpose, three point scale
questionnaires have been prepared. To preserve the understandability of the data, the data
have been classified and presented in tables in order to make easy for viewers to make
understand, and analyze the data presented in the report. Data presented in table is more
understandable in comparison to data in paragraph.

Table 2.3: Measurement parameters of customer’s satisfaction

Measurement Strongly Strongly Neither Agree nor

Parameter Agree Disagree Disagree

Efficiency 80 11 9

Quality 76 13 11

Accessibility 80 15 5

Reliability 87 8 5

Mean 80.75 11.75 7.5

S.D. 3.9607 2.5860 2.5981

C.V. 0.04905 0.22009 0.34641

24
Fig.2.1: Measurement parameters for customer satisfaction

● Efficiency of the service

The results in the table 2.3 show that 80%of the participants strongly agree and only
11% strongly disagree with the efficiency of service. However, 9% of the participants
neither agree nor disagree with the efficiency of service. It indicates that the large
number of customer agree with the operational efficiency of Himalayan Bank.

● Quality of the service

The table 2.3 shows that 76% percent of the participants strongly agree with the Quality
of the ATM service of the Himalayan Bank which supports the quality of the ATM
service. Only 13% strongly disagree with the quality of the ATM service which indicates
the only few number of customers are dis-satisfied with the quality of service. Only 11%
of the participants neither agree nor disagree with the quality of service. Of the entire
attribute used to measure the quality of the service, most of the participants are more
satisfied with the quality service of bank.

● Accessibility of the service

It is clear from the table 2.3 that 80%of the participants strongly agree and only 15%
strongly disagree with the accessibility of the ATM service. It indicates that the
participants are well facilitated with the ATMs branches, but some of the participants are

25
dissatisfied when it comes to the location of the ATMs. Participants believe that the
location study of ATM lounges should be done to market as most accessible place.

● Reliability of the service

The table 2.3 shows that the participants consider the ATM service as a reliable service.
87% of the participants strongly agree and only 8% strongly disagree of the ATM service
as they do not consider ATM service of the bank as reliable service. The attributes like
cash availability, ATM machine functioning and ATM card acceptance levels have the
highest agreement. The participants also believe there is enough cash in the ATM during
transactions without any inconvenience.

The average of the measurement parameters in strongly agree is 80.75 and in strongly
disagree is 11.75. It indicates that the majorities of the respondents are satisfied with the
complaint resolution, convenience, service cost, and perceived security of ATM facility.
The C.V. of strongly agree is 0.04905 and the C.V. of strongly disagree is 0.22009. The
C.V. of strongly agree is less than the C.V. of strongly disagree, so, the ATM facility of
Himalayan Bank is preferable. The average of the neither agree nor disagree is 7.5 which
indicates that the few respondents are indifferent towards the measurement parameters
and its C.V. is 0.34641 which is highest among others.

Table: 2.4 Measurement Parameters for customer satisfaction

Measurement Strongly Strongly Neither Agree nor

Parameter Agree Disagree Disagree

Complain
69 19 12
Resolution

Convenience 73 11 16

Service Cost 75 14 11

Perceived Security 72 23 5

Mean 72.25 16.75 11

S.D. 2.1651 4.6030 3.9370

26
C.V. 0.02997 0.27481 0.35791

Fig.2.2. Measurement Parameters for customer satisfaction

● Complaint Resolution

The result in the table 2.4 shows that 69% participants strongly agree and only the 19%
participants strongly disagree with the complaint resolution. Customers (Participants) are
highly satisfied with the customer service on the ATM complain resolution. They believe
that complains are handled promptly by the customer service department and the ATM
complain are settled in the stipulated time. However, 12% of the customers neither agree
or disagree with the complaint resolution to some extent.

● Convenience of the service

The result from the table 2.4 shows that 73% of the participants strongly agree with
the convenience of the service and only 11% participants strongly
disagree .Participants agree that the ATM of Himalayan Bank is easy to use and the
directions are proper provided while using the ATM. Participants is only concerned
with the opening hour of the ATMs. In some of the branches, the ATM service is
restricted to opening hours of the bank only which has created some inconvenience to
the customers.

27
● Service Costs /Charges

From the table 2.4, it is clear that 75% of the participants are satisfied with the service
charges and only 14% strongly disagree with the service cost charges. Customers have
high dissatisfaction on the service cost and charges among other parameters. The reason
behind this dissatisfaction is less accountable and less transparent charges and service
charge. Participants think that the service changes are not accountable and transparent.

● Perceived Security

This is another factor for measuring customer satisfaction. Table 2.4 shows that 72% of
the participants strongly agree and only 23% strongly disagree of the perceived security.
It shows that there is very less security problems on ATM services and the bank has
been successful in offering the safe and secure ATM facility.

The average of the measurement parameters in strongly agree is 72.25 and in strongly
disagree is 16.75. It indicates that the majorities of the respondents are satisfied with the
complaint resolution, convenience, service cost, and perceived security of ATM facility.
The C.V. of strongly agree is 0.02997 and the C.V. of strongly disagree is 0.27481. The
C.V. of strongly agree is less than the C.V. of strongly disagree, so, the ATM facility of
Himalayan Bank is preferable. The average of the neither agree nor disagree is 11 which
indicates that the few respondents are indifferent towards the measurement parameters
and its C.V. is 0.3579 which is highest among others.

1.3.2. Efficiency of Service

The efficiency of the service is determined by several factors such as processing

time, transaction execution, and machine efficiency.

28
Table 2.4

Measurement Strongly Neither Agree nor

Strongly Disagree
Parameter Agree Disagree

Processing Time 80 12 8

Transaction Execution 82 11 7

Machine Efficiency 81 11 8

Mean 81 11.333 7.6666

S.D. 0.8165 0.471405 0.4714

C.V. 0.01008 0.04159 0.06149

Figure 2.3

Efficiency of the service is measured by three specific attributes like the processing time,
transaction execution and the efficient machines. From table.2.4 it is observed that
majority of the participants agree to the fact that the processing time, transaction
execution time and the overall machine efficiency of the ATM are efficient enough. The
table shows that 80%participants strongly agree with the processing time, where only
12% strongly disagree with the processing time. Similarly, in transaction execution 82%

29
participants strongly agree and only 11% strongly disagree. Likewise, 81% participants
strongly agree and only 11% strongly disagree with the machine efficiency.

The average of the measurement parameters in strongly agree is 81 and in strongly

disagree is 11.33. It indicates that the majorities of the respondents are satisfied with the
processing time, transaction execution, machine efficiency of ATM facility service . The
C.V. of strongly agree is 0.01008 and the C.V. of strongly disagree is0.04159. The C.V.
of strongly agree is less than the C.V. of strongly disagree, so, the ATM facility of
Himalayan Bank is preferable. The average of the neither agree nor disagree is 7.67
which indicates that the few respondents are indifferent towards the measurement
parameters and its C.V. is 0.06149which is highest among others.

2.3.3. Quality of service

Table 2.5

Measurement Neither Agree nor

Strongly Agree Strongly Disagree
Parameter Disagree

Brand Appearances 80 10 8

Quality of Notes 75 13 7

Environment Comfort 75 15 8

Mean 76.666 12.666 7.666

S.D. 2.3570 2.0548 0.4714

C.V. 0.03074 0.16222 0.06149

30
Figure 2.4

The perceived brand appearance, quality of the notes and the environment of the ATM
lounges are attributes to measure the quality of the service the table shows that
80%participants strongly agree with the Brand Appearances, where only 10% strongly
disagree with the Brand Appearances. Similarly in Quality of notes 75% participants
strongly agree and only 13%strongly disagree. Likewise, 75% participants strongly agree
and only 15%strongly disagree with the environment comfort. The average of the
measurement parameters in strongly agree is 76.67 and in strongly disagree is 12.67. The
C.V. of strongly agree is 0.03074 and the C.V. of strongly disagree is 0.1622.The C.V. of
strongly agree is less than the C.V. of strongly disagree. The average of the neither agree
nor disagree is 7.67 which indicates that the few respondents are indifferent towards the
measurement parameters and its C.V. is 0.06149 which is highest among others.

2.3.4. Accessibility of service

Table 2.6

Measurement Strongly Neither Agree

Strongly Disagree
Parameter Agree nor Disagree

ATM Machine 87 12 4

31
ATM Location 62 30 8

ATM
55 38 7
Marketability

Mean 68 26.666 6.333

S.D. 13.7356 10.873 1.6997

C.V. 0.20199 0.407 0.26837

Figure no.2.5

Accessibility is determined by the number of the ATMs, location of the ATM lounges
and the marketability of the ATM service. This table shows that, participants are satisfied
with the number of ATMs of the banks. The table shows that 87%participants strongly
agree with the ATM machine where only 12% strongly disagree with the ATM machine.
Similarly, in ATM Location, 62% participants strongly agree and only 30% strongly
disagree. Likewise, 55% participants strongly agree and only 38% strongly disagree with
the ATM marketability. So, this table shows that, participants are satisfied with the
number of ATMs of the banks. The mean value of the strongly agree is 68 and in strongly
disagree is 26.67. Likewise, the C.V. of strongly agree is 0.20199 and the C.V. of
strongly disagree is0.407.The C.V. of strongly agree is less than the C.V. of strongly
disagree. The C.V of neither agree nor disagree is 0.26837 which is highest among

32
others. So, from the respondent it signifies that the level of satisfaction is high in the
accessibility of service.

2.3.5. Reliability of Service

Table 2.7

Neither
Strongly Strongly
Measurement Parameter Agree Nor
Agree Disagree
Disagree

Cash Availability 65 20 15

ATM Machine Functioning 70 13 20

ATM Card Acceptance 75 15 10

Mean 70 16 10

S.D 4.082483 2.94392 5

CV 0.058321 0.183995 0.5

Figure 2.6

Reliability of service is measured by the cash availability, ATM machine functioning

during transaction and ATM card acceptance level. This table shows that the customers

33
are satisfied when it comes to the reliability. Table shows that 65% of the participants
strongly agree of the cash availability, where only 20%strongly disagree. Similarly in
ATM machine functioning, 70% strongly agree and 13% strongly disagree. Likewise,
75%strongly agree and 15% strongly disagree with the ATM card acceptance. The mean
value of the strongly agree is 70 and in strongly disagree is 16. The average of the neither
agree nor disagree is 10. Likewise, the C.V. of strongly agree is 0.058321 and the C.V. of
strongly disagree is 0.407.The C.V. of strongly agree is less than the C.V. of strongly
disagree. The C.V of neither agree nor disagree is 0.26837 which is highest among
others. .This means that participants agree the fact that the ATM service provided by the
bank is reliable.

2.3.6. Convenience of the service

Table no.2.8

Measurement Strongly Neither Agree

Strongly Agree
Parameter Disagree nor Disagree

ATM Interface 73 20 7

ATM Direction 58 30 12

Opening Hour 65 25 10

Mean 65.3333 25 9.66667

S.D. 6.1283 4.0825 2.0548

C.V. 0.09380 0.16330 0.21257

34
Figure 2.7

Interface of the ATM, direction in the ATM and the opening hour of ATM
lounges are used to measure the convenience level of the service. Table shows
that, 73%of the participants agree with the ATM interface service provided by the
bank is convenient. Only 20% strongly disagree. 58% participants strongly agree
with the ATM direction and only 30% strongly disagree. Likewise, 65%
participants are strongly agreed with the opening hour and only 25%strongly
disagree. The table shows that participants are highly satisfied as the mean value
of strongly agree is 65.33 and strongly disagree of mean is 25. The mean of the
neither agree nor disagree is 7. The C.V. of strongly agree is 0.09380 and the
C.V. of strongly disagree is 0.16330.The C.V. of strongly agree is less than the
C.V. of strongly disagree. The C.V of neither agree nor disagree is 0.21257which
is highest among others. .This means that participants agree the fact that the ATM
service provided by the bank is convenient.

35
2.3.7. Service charge cost

Table no.2.9

Measurement Neither Agree nor

Strongly Agree Strongly Disagree
Parameter Disagree

Service Charge 30 55 15

service Cost 25 65 10

Mean 27.5 60 12.5

S.D. 2.5 5 2.5

C.V. 0.09091 0.08333 0.2

Figure 2.8

The satisfaction on the service charge imposed is measured by attribute like the
service charge and service cost. The result in the table 2 shows that the 30% of the
customer are strongly agreed with the service charges with the given attributes. And
most of the participants strongly disagree that is 55 % participants are strongly
disagreeing with the service charge. Likewise, in service cost also majority of the
participants are strongly disagree that is 65% where only few of the participants
strongly agree with the service cost that is 25%.The mean value of strongly agree is

36
27.5 and strongly disagree of mean is 60. The mean of the neither agree nor disagree
is 12.5. The C.V. of strongly agree is 0.09091 and the C.V. of strongly disagree is
0.08333.The C.V. of strongly agree is higher than the C.V. of strongly disagree. The
C.V of neither agree nor disagree is 0.2 which is highest among others. So, the reason
behind this dissatisfaction is less accountable and less transparent service. Participants
think that the service changes are not accountable and transparent.

2.3.8. Perceived Security

Table no.2.10

Measurement Neither Agree nor

Strongly Agree Strongly Disagree
Parameter Disagree

ATM Over-crowded 30 60 10

ATM Monitor 65 22 13

ATM safety 75 15 10

ATM Privacy 70 20 10

Mean 60 29.25 10.75

S.D. 17.6777 17.9356 1.2990

C.V. 0.29463 0.61318 0.12084

37
Perceived Security

Figure.2.9:

Satisfaction level of the customer is measured using four attributes. The overcrowdings in
the lounges, ATM lounge safety, ATM service safety and ATM privacy are the attributes
used. 30% participants strongly agree with the ATM overcrowded where most of the
participants strongly disagree with the ATM overcrowded that is 60%. Similarly, in ATM
monitor 65% strongly agree and only the 22% strongly disagree. In ATM safety, 75%
strongly agree and only the 15% strongly disagree. Likewise, in ATM privacy also
majority of the participants strongly agree that is 70% and only the 20% strongly
disagree. The mean value for the perceived security is 60 which is higher than strongly
disagree that is 29.25. The C.V. of strongly agree is 0.29463 which is less than C.V. of
strongly disagree that is 0.61318. The C.V of neither agree nor disagree is 0.2 which is
highest among others. The C.V of neither agree nor disagree is 0.1284 which is highest
among others. So, it shows that the participants agree the ATM service provided by the
Himalayan Bank is safe to use.

38
2.3.9. Complain resolution

Table no.2.11

Strongly Neither Agree

Measurement Parameter Strongly Agree
Disagree nor Disagree

ATM Complaint Handling 75 18 7

ATM Complaint Settlement 70 21 9

Customer Service Response 70 22 8

Mean 71.66666667 20.3333333 8

S.D. 2.3570 1.6997 0.8165

C.V. 0.03289 0.08359 0.10206

Figureno.2.10

39
Complaint Resolution

Promptness of handling complains, settlement time for complains and the response time
are the attributes to measure the satisfaction level in complaint resolution. It is clear in the
Table shows that 75% participants satisfied with the ATM complaint handling and only
18% strongly disagree. Similarly, in ATM complain settlements 70% strongly agree and
only 21% strongly disagree. 70% participants strongly agree in customer service response
and only 22% strongly disagree with the customer service response. The mean value for
the complaint resolution is 71.67 which are higher than strongly disagree that is 20.33.
The mean value of neither agree nor disagree is 8.Likewise, the C.V. of strongly agree is
0.03289which is less than C.V. of strongly disagree that is 0.08359. The C.V of neither
agree nor disagree is 0.2 which is highest among others. The C.V of neither agree nor
disagree is 0.10206 which is highest among others. So, the majority of the participants
believe that complains are handled promptly by the customer service department and the
ATM complain are settled in the stipulated time.

2.4.Findings and Discussion

2.4.3. Findings

The card services have facilitated the customers of the bank in experiencing better
customer services and easy transaction process saving the valuable time and effort. It has
made customer more comfortable in dealing with their financial transactions. The degree
of the customer satisfaction has been determined taking different satisfaction
measurement parameters like reliability, efficiency of services, quality, security, and
complaint resolution etc. of the ATM facility of the Himalayan Bank Limited. The data
analysis and interpretations contribute the following findings.

● From the study, it has been found that the Himalayan Bank has been very successful
in rendering the reliable, qualitative, accessibility and efficient ATM facility as 80%
of the participants strongly agree and only 11% participants strongly disagree.
Whereas, 9% of the participants are found neither agree nor disagree with the
efficiency service.

40
● 76% of the participants strongly agree and only 13% strongly disagree. Where 9%
participants are found to neither agree nor disagree on quality service.
● 80% participants strongly agree and 15% participants strongly disagree where 5%
participants are found to neither agree nor disagree on accessibility service.
● Likewise, 87% participants strongly agree and only 8% of the participants strongly
disagree, whereas 5% participants are found neither agree nor disagree on reliability
of ATM service.
● Participants are highly satisfied with the customer service on the ATM complaint
resolution as 69% of the participants strongly agree and only 19% of the participants
strongly disagree, whereas, 12% of the participants found neither agree nor disagree
on complaint resolution of ATM service.
● Participants agree that the ATM of Himalayan Bank is easy to use and the directions
are proper provided while using the ATM. 73% of the participants strongly agrees
and only 11% of the participants strongly disagree, whereas, 16% of the participants
are found neither agree nor disagree on convenience of ATM service.
● Customers have high dissatisfaction on the service cost and charges among other
parameters as 75% of the participants strongly agree with the service charges and
only 14% strongly disagree with the service cost charges. Whereas, 11% of the
participants are found neither agree nor disagree on convenience of ATM service.
● More than 72% of the participants strongly agree with the perceived security of the
ATM of Himalayan Bank and only 23% of the participants strongly disagree with the
perceived security as 5% of the participants neither agree nor disagree. It shows that
the bank has been successful in providing secure ATM service.
● 80% of the participants strongly agree with the processing time, whereas, only 12%
strongly disagree with the processing time and 8% of the participants are found
neither agree nor disagree.
● Similarly, in transaction execution 82% of the participants strongly agree and only
11% strongly disagree whereas, 7% participants are found neither agree nor disagree.
● Likewise, 81% of the participants strongly agree and only 11% strongly disagree with
the machine efficiency. Only 8% of the participants are found neither agree nor
disagree.

41
● 80% of the participants strongly agree and only 10% strongly disagree whereas 8% of
the participants are found neither agree nor disagree with the Brand Appearances.
Similarly, in Quality of notes 75% of the participants strongly agree and only 13%
strongly disagree whereas 7% of the participants are found neither agree nor disagree.
Likewise, 75% of the participants strongly agree and only 15% strongly disagree and
8% customers are found neither agree nor disagree with the environment comfort.
● Customers have positive perception on ATM facility due to its ease of use and wider
availability. With the extension of bank branches, the ATM locations have also been
expanded in different places and high accessibility of the people as 87% of the
customers are found to strongly agree and 12% strongly disagree. Whereas, 4% of
participants are found neither agree nor disagree with the easy accessibility of ATM
facility and 15% of the participants are found to strongly disagree with this service.
● 62% of the participants strongly agree and only 30% strongly disagree on ATM
location, whereas, 8% of participants are found neither agree nor disagree.
● 55% of the participants strongly agree and only 38% strongly disagree on ATM
marketability whereas, 7% of the participants are found neither agree nor disagree.
● Majority of the participants consider the ATM service as a reliable service as 65% of
the participants strongly agree and only 20% strongly disagree whereas, 15% of the
participants are found neither agree nor disagree on cash availability.
● 70% of the participants strongly agree and only 13% strongly disagree whereas, 20%
of the participants are found neither agree nor disagree on ATM machine functioning.
● 75% of the participants strongly agree and only 15% strongly disagree whereas, 10%
of the participants are found neither agree nor disagree on ATM card acceptances.
● Participants agree that the ATM of Himalayan Bank is easy to use and the directions
are proper provided while using the ATM as 73% of the participants strongly agrees
and only 20% strongly disagree whereas, 7% of the participants are found neither
agree nor disagree on ATM Interface.
● 58% of the participants strongly agree and only 30% strongly disagree on ATM
Direction whereas, 12% of the participants are found neither agree nor disagree.

42
● Majority of the participants are found to agree with the ATM opening hours as 65%
of the participants strongly agree and only 25% strongly disagree. Only, 10% of the
participants are found neither agree nor disagree on opening hour.
● Participants think that the service charges are not accountable and transparent as 55%
of the participants strongly disagree only 30% strongly agree, whereas, 15% of
participants are found neither agree nor disagree on service charge.
● 25% of the participants strongly agree where 65% strongly disagree. Only 10% of the
participants are found neither agree nor disagree on service cost. So, this shows that
most of the participants strongly disagree on service cost due its hidden charges.
● Participants agree that the ATM service provided by the Himalayan Bank is safe to
use. Majority of the participants are found to strongly agree as 75% of the participants
strongly agree and only 15% strongly disagree. Whereas, 10% participants are found
neither agree nor disagree on ATM safety.
● 30% of the participants strongly agree and only 60% strongly disagree on ATM
overcrowded whereas, 10% of the participants are neither agree nor disagree.
● 65% of the participants strongly agree and 22% strongly disagree on ATM Monitor
whereas, 13% participants neither agree nor disagree.
● 70% of the participants strongly agree and 20% strongly disagree whereas, 10% of
the participants neither agree nor disagree on ATM privacy.
● Complaint resolution is found to be very efficient in Himalayan Bank as 75% of the
participants strongly agree and 18% strongly disagree. Whereas, 7% participants
neither agree nor disagree.
● 70% of the participants strongly agree whereas, 21% strongly disagree on ATM
Complaint Settlement. 9% participants are found neither agree nor disagree on ATM
Complaint Settlement.
● Customers strongly agree with the prompt response of the bank as 70% of the
participants strongly agree and 22% strongly disagree whereas, 8% of the participants
neither agree nor disagree. It shows that the bank is more customers oriented and is
more concerned on solving customers’ problems and grievances.

43
2.4.4. Discussion

The Himalayan bank has been rendering the qualitative ATM services to its customers.
Indeed, it is the pioneer bank in introducing ATM service in Nepal. It has been revealed
that the customers have high degree of satisfaction towards its services. The customers
are found highly satisfied on the complaint resolution procedure of the HBL bank on the
ATM service. The bank has high customer complaints response. Similarly, there is high
degree of convenience and the accessibility of ATM service due to the extended ATM
branches in many places. This has increased the customer’s easy access of services in
many locations facilitating their transaction more easily. Like-wise, there is also high
reliability of the customers on ATM service as the ATM card acceptance; cash
availability and smooth functioning of the ATM machines are highly perceived by the
customers. On the same way, the card service is also perceived as the safe and secured by
the customers. However, many customers are highly dissatisfied with the service charge
that has been charged by the bank among the other parameters. The highly positive
response of the customers on the convenience, reliability, accessibility, security,
efficiency, quality, complaint resolution etc. indicate the high degree of customer
satisfaction on the ATM service of the Himalayan Bank Limited. In majority of the
satisfaction measurement parameters, there is high degree of customer agreeableness and
low degree of disagreeableness. On the whole, the customer’s perception on the ATM
service of the bank is highly standardized, qualitative, reliable and secured.

44
 CHAPTER III: CONCLUSION AND ACTION IMPLICATION

3.1.Conclusion

Customer satisfaction is the primary concern of service oriented organization like banks.
Himalayan Bank limited has been successful to create its own image within the country,
and it is also successful to create the banking relation in most of the countries of the
world. This research indicates that high number of respondents was satisfied with type of
ATMs they used both in terms of their mode of operation and access. The constructive
perceived ease of use and perceive accessibility had high positive perception of the
respondents. From the research, it has been concluded that the bankers in order to retain
the customers must improve the safety, provide accurate information and make easy for
customers in the use of ATM services. In general, majority of the customers are highly
satisfied in using the ATM services of the Himalayan Bank. Most of the respondents feel
that the Himalayan Bank has been able to meet the expectation in providing the ATM
service. The research also provides the essential information about the factors to the bank
which can be used to strengthen the customer satisfaction. Reliability of the ATM
service, response to the customers’ complain, transparent service charge, opening hour of
ATMs, quality of the cards etc. are important attributes for the customers and banks
should focus on such attributes for increasing the level of the satisfaction. ATM service
could be a competitive tool and satisfaction of customer towards such services could be a
competitive edge to the banks. Himalayan Bank has been a milestone in rendering the
best ATM services from the very beginning as it is the pioneer bank to introduce ATM in
Nepal.

3.2.Action Implications

The rapid growth in use of ATMs in Nepal offers more opportunity to banks to
strengthen customer base through innovative service for strategic advantage. ATM
offers many benefits on the side of both the customers and the banks. With the prospect
of ATM there are other threats as well the study has the following action implications.

45
● The bank should proactively monitor customers’ preferences with regards to the
ATM services provided by Himalayan bank and extend the services of ATM for other
various purposes beside cash withdraw and payments.
● Bank should focus on important aspect of security and privacy as well as efficient
operation of ATMs. The bank should be aware of the fraudulent activities and take
safety measures instantly as the security and privacy issues are emerging in the
contemporary time period.
● From the ATM of Himalayan bank, the cash withdraw limit is Rs.50, 000 for three
times in a day which has been problematic for many customers for completing their
transactions. Whereas the cash withdraw limit is higher in comparison to other banks.
So, it would be better if the current cash withdraw limit from HBL ATM is increased
which can provide higher satisfaction to customers.
● The ATM branches of HBL bank are limited to city areas. It would be better if the
ATM branches are increased inside and outside the valley which can help majority of
customers in using this facility. Most of the respondents feel that the ATMs are not in
convenient location and they have to ride a long distance to execute the ATM
transactions. New locations of ATM can be selected as per the population of customer
in a particular area.
● Similarly, the marketability of ATM services should be increased to make people
aware on the use of ATM services which can benefit both the customers in getting the
services and for the banks in rendering the services more promptly.
● The bank should not focus only the satisfaction of ATM users but also aim at
delighting them ensures the retention.
● Bank should develop strategies to motivate non-users through awareness, education
extending personalized services and demonstrating the functions of ATM.
● Quick response to customers’ needs and queries about the ATM related services are
important the service standard of ATM.
● Finally, the bank should be proactive towards the customer need and expectation
from the ATM service. The ATM service should be monitored in regular time frame
to insure the efficient operation and fewer breakdowns. Some of the respondent also
suggested making the ATM lounges more private by covering the lounge with black

46
privacy glasses which implies that customer are affected even by a small attributes so
banks should be more attentive towards listening to the customer.

47
 REFERENCES

Al-Hawari, M. a. (2006). The impact of automated service quality on financial

performance and the mediating role of customer retention. Journal of Financial
Service Marketing, Vol. 10, No. 3, pp.228–243.

Chawla, U. a. (2009). E-delivery channel based banking services. e-channels, pp.128-

135.

Glover, J. (2015). Business Lending as Your Best Marketing Strategy.

Harpal, A. &. (2013). Customer Satisfaction & Retail Banking: A Study of Customer
satisfaction in Retail Banking. punjab, India.

Idris, B. (2014). Customer satisfaction of Automated Teller Machine (ATM) Based on

Service Quality.

Islam, T. (2014). Factoring Affecting Customers’ Satisfaction Level on ATM Services .

bangladesh: .

Joseph, M. a. (2003). An empirical evaluation of US bank customer perceptions of the

impact of technology on service delivery in the banking sector. International
Journal of Retail & Distribution Management, Vol. 31, No. 4, pp.190–202.

Karjaluoto, H. M. (2002). Electronic banking in Finland: consumer beliefs and reactions

to a new delivery channel. Journal of Financial Service Marketing, Vol. 6, No. 4,
pp.346–361.

Khan, M. (2010). An empirical study of automated teller machine service quality and
customer satisfaction in Pakistani banks. European Journal of Social Sciences,
Vol. 13, No. 3, pp.333–344.

Kumal and Singh, S. (2009). Impact of ATM on Customer Satisfaction’. Business

Intelligence Journal, Vol. 2, No. 2, pp. 276–287.

Kumbhar, V. (2011). Factors affecting on customers’ satisfaction: an empirical

investigation of ATM service. In V. Kumbhar, International Journal of Business
Economics and Management Research. In Vol. 2, No. 3, pp.144–156.

48
Lovelock, C. (2000). Functional integration in services: understanding the links between
marketing, operations, and human resources’, in Schwartz, T.A. and Iacobucci, D.
In C. Lovelock, Handbook of services marketing and management (pp. pp.421-
438). sage,thousand Oaks.

Lubin, P. (2012). Are Highly Satisfied Customers Fairly Treated Customers? Retrieved
04 01, 2017, from www.treliant.com/News-and-Events/Articles/Articles-
Detail/paul-lubin

M. and Ward, A.-H. (2006). impact of automated service quality on financial

performance and the mediating role of customer retention. Journal of Financial
Service Marketing, Vol. 10, No. 3, pp.229–244.

Mcandrews, J. (2003). Automated teller machine network pricing – a review of the

literature.

Sabir, I. G. (2014). Beneficial of customer. pakistan: U.A.

Saxena. (2011). Analytical study of customer satisfaction. Udaipur, India.

Wan, W. L. (2005). Customers’ adoption of banking channels in Hong Kong.

International Journal of Bank Marketing, Vol. 23, No. 3, pp.255–272.

Zhu, F. W. (2002). IT-based services and service quality in consumer banking.

International Journal of Service Industry Management, Vol. 13, pp.69–90.

49