Customer Satisfaction of ATM Service: A Case Study of HSBC ATM Dr. Md. Rafiqul Islam Dr. Samir Kumar Sheel Pallab Kumar Biswas * Abstract: The Automated Teller Machine (ATM) is one type of innovation that can mechanically accept deposits, issue withdrawals, transfer funds between accounts, collect bills, and make small loans. This study aims at investigating the satisfaction levels of HSBC ATM cardholders (both staff and nonstaff) with respect to various aspects (promptness of card delivery, the performance of HSBC ATM, the service quality of ATM personnel etc.) of using HSBC ATM and their opinions on various other related issues (such as positive and inconvenient features of HSBC ATM, recommendation to improve the service quality etc.). This study is one type of exploratory research using convenience sampling technique where samples have been selected on the basis of convenience. Thus, projecting data beyond the sample is statistically inappropriate. This study only provides information for analyzing ATM scenario of HSBC. Though the samples were selected on a convenience basis and it may not represent the whole population, but still it is no less important for the HSBC management to consider the recommendations with due care for better customer service and for being in a better competitive position.
Keywords: ATM card, Machine breakdown, Unsuitable location, currency quality. 1.0 Introduction 1.1 Background of the Study: Technology is revolutionizing the financial services industry through various unthinkable innovations. The volume of cross-border trading and other financial activities is increasing geometrically facilitated by technology. The influence of technology over product innovations in banks is enormous. In innovation process banks have to decide which products they wish to sell, whether they wish to build those products themselves, how they should deliver, and why they wish to deliver them to customers (Raihan 2001). Innovation is the art of overcoming constraints toward development. It occurs when a new or changed product or service is introduced to the market, or when a new or changed process is used in a commercial situation. No organization can remain happy with the existing products to cope with the competitors. Banks are no exception to this situation (Shahid 2004). The Automated Teller Machine (ATM) is such type of innovation that can mechanically accept deposits, issue withdrawals, transfer funds between accounts, collect bills, and make small loans. HSBC is one of the leading organizations in the modern financial world. . It started its operation in Bangladesh in 1996. Since then, it is their strategic decision to bring all modern technologies such as ATM, Easy Pay Machine etc. in banking in Bangladesh. This decision was to keep them in the market in a superior position competing in the market providing better services with various alternative channels 24 hours-a-day, and 7 days-a-week. The growth rate of HSBC ATM users are shown in the following table: Table 1: Growth rate of HSBC ATM users July 2000 July 2001 July 2002 July 2003 240.65% 98.37% 36.67%
Particulars Growth rate
July 2004 42.36%
July 2005 27.67%
Dr. Md. Rafiqul Islam and Dr. Samir Kumar Sheel are Associate Professors, Department of Marketing, University of Dhaka, and Pallab Kumar Biswas is a Lecturer, Faculty of Business Administration, Eastern University.
-1Electronic copy available at: http://ssrn.com/abstract=990242
The above table shows that the use of HSBC ATM is increasing day by day. So it is high time to investigate how the customers feel with the HSBC ATM, what are their newer demands etc. 1.2 Statement of the Problem and Objectives of the Study: Commercial banking is considered as a service industry. In the process of conducting its own activities to achieve its own goals, i.e. making profit, a commercial bank provides various ancillary facilities (Ghosh 1981). Automated Teller Machine (ATM) is such an...
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