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Topics: Automated teller machine, Bank, Interac Pages: 24 (7931 words) Published: February 2, 2013

International Journal of Business and Management

Vol. 7, No. 7; April 2012

Analysis of the Negative Effects of the Automated Teller Machine (ATM) as a Channel for Delivering Banking Services in Nigeria Chinedu N. Ogbuji (Corresponding author) Department of marketing, University of Port Harcourt PMB 5323, Choba, Port Harcourt, Nigeria Tel: 234-80-3541-9583 E-mail:

Chima B. Onuoha Adjunct Professor of Management, University of Uyo Uyo, Nigeria Tel: 234-80-3707-8654 E-mail:

Emeka E. Izogo Department of marketing, Ebonyi State University Abakaliki, Nigeria Tel: 234-70-3629-7276 Received: September 16, 2011 doi:10.5539/ijbm.v7n7p180 Abstract This paper titled, “Analysis of the negative effects of the automated teller machine (ATM) as a channel for delivering banking services electronically in Nigeria” proposed that the ATM system of delivering banking services not only contribute to the increasing rate of bank fraud but equally lures Nigerians into profligate expenditure. Using a sample of 600 respondents conveniently selected from two states of the federation (Lagos and Anambra), and analyzing the hypotheses formulated with chi-square, it was found that results were consistent with the propositions made. Against these backdrops, it was recommended that banks should; strive to increase their security layers to subvert the tricks of web scammers, limit the amount which customers may be allowed to withdraw at a time and provide electronic alerts to customers’ phone for all transactions carried out on their bank accounts through ATMs, cooperate instead of competing in stemming the ATM fraud menace and educate customers on the need to safeguard their PINs. Government was encouraged to; promulgate laws that will guide e-business including ATMs in Nigeria, provide employment, check the indiscriminate issuance of ATM cards by banks and so on. Customers were advised to; avoid replying unsolicited mails and text messages, not to compromise their PINs, maintain a separate account which is not placed under ATM if they are given to impulsive expenditure. Interested researchers were as well given a focus for further research. Keywords: Banking, Customers, Services, Channel, Automated Teller Machine (ATM) 1. Introduction and Statement of Problem The converging forces of technology have tremendously altered manual systems of delivering banking services and have subsequently paved way for electronic delivery platforms in recent time. The Automated Teller Machines (ATMs) is one of existing replacements of the cascading labour-intensive transaction system effected through what is popularly referred to as paper-based payment instruments. Heli (2006) confirmed this assertion when he held that the use of electronic means of payment has increased at the expense of paper-based payment instruments. He further disclosed that in some countries, payment cards have replaced cheques, and Internet banking has become a popular means of paying invoices. Nigeria is not an exception; we have had a share of this revolution. Similarly, Adeyemi (2010) quoting the chairman of Chief Inspectors of Banks in Nigeria (CIBN), Lagos chapter, 180

ISSN 1833-3850 E-ISSN 1833-8119

E-mail: Published: April 1, 2012

Accepted: February 21, 2012


International Journal of Business and Management

Vol. 7, No. 7; April 2012

Bayo Olugbemi noted that banking has undergone several changes and improvements as usually dictated by the dynamic nature of economies the world over, adding that banking and other financial services are becoming more sophisticated to the extent that cash paper work are fast disappearing from banking, rather, financial services delivery has moved to telephone (Telebanking), Automated Teller Machine (ATM), Internet and Smartcard/Electronic purse, which aimed at making transactions...
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