A TERM PAPER On

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

At

Submitted to (Preety Singh)

For the partial fulfillment of the award of Bachlor of Business Administration (2009-2011)

Submitted by (Mrityunjay kumar)

LOVELY PROFESSIONAL UNIVERSITY,PUNJAB

1|Page

PREETI SINGH Lectrurer in Management Lovely professional university Punjab

CERTIFICATE
The term paper entitled CUSTOMER SATISFACTION ON E-

BANKING SERVICES submitted by mrityunjay kumar, is a record of

the independent project work done by him during the period of August December 2010 under my supervision .it has not formed the basis for award to any candidate for any previous degree ,diploma, Associateship, Fellowship or other similar titles

Station: Phagwara Date:

( Preeti Singh )
2|Page

MRITYUNJAY KUMAR Second year, B.B.A Lovely Faculty of Business and Arts Lovely School of Management Lovely professional university Punjab

DECLARATION

I, Mrityunjay Kumar hereby declare that the term paper entitled

CUSTOMER SATISFACTION ON E-BANKING SERVICES is

a record of the independent research work done by me during the period of august- December 2010 under the supervision of ms. Preeti Singh, faculty ,department of economics, lovely professional university,Punjab. I also declare that it has not formed the basis for award to any candidate for any previous degree ,diploma, Associateship or other similar titles.

Station: Punjab Date: Mrityunjay Kumar

3|Page

ACKNOWLEDGEMENT

Whenever I use to think about this project I feel this is something which shows me the path by lighting in my way and which fills me with full of enthusiasm and gives an Indian proud to me.this project is not only about recession ,its more about meltdown. There are a host of people who have supported me throughout this project and to whom I am deeply indebated . I am especially fortune to have so many wonderful people near around me. First of all my special thank to our sincere facilitator Preeti mam , who provided me the opportunity to select such an interesting topic and also for helping me throughout the project. I must thank to my dear friend Pushpanjali Banik for his support and encouragement to me and Aprajita Singh for fueling my self confidence into me throughout the term paper. I must not forget to extend my heartfelt gratitude to each and every one who helped me directly or indirectly in accomplishing this project. Last but not least, I would thank to my dear sister Tannu Bansal and my parents for fulfilling me with all possible amenities, funding my education and putting trust into me that I would make them proud some where and someday.

Mrityunjay kumar

4|Page

Contents
INTRODUCTION ......................................................................................................................................... 6 Objective: ....................................................................................................................................................... 7 Project Intention: ............................................................................................................................................ 7 EMERGENCE OF EBANKING ................................................................................................................... 7 DEFINATION OF E BANKING: ............................................................................................................... 7 CHARECTERISTIC OF E- BANKING: ...................................................................................................... 8 COMMON E- BANKING SERVICE ........................................................................................................... 8 Potential areas where e-Banking can be used :-............................................................................................. 8 E- BANKING DELIVARY CHANNEL ..................................................................................................... 10 ATM:.................................................................................................................................................... 10 IVR (Interactive Voice Response): ...................................................................................................... 10 CDM (Cash Deposit Machine): ........................................................................................................... 10 POS (Point of Sale): ............................................................................................................................. 10 TYPES OF RISK IN E-BANKING:............................................................................................................ 10 Impact of e-Banking in traditional service: ................................................................................................. 11 EVOLUTION OF EBANKING .................................................................................................................. 12 WHAT MADE E-BANKING SO HIT?. ..................................................................................................... 12 Real time Banking................................................................................................................................ 12 24/7 Banking ........................................................................................................................................ 13 Banking from anywhere ....................................................................................................................... 13 Safe and secure Banking ...................................................................................................................... 13 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 .................................... 14 Review of literature...................................................................................................................................... 20 Finding ......................................................................................................................................................... 23 Concluding remark....................................................................................................................................... 29 References .................................................................................................................................................... 30

5|Page

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:

Open a new account and create a new user. Service the cheque book issue request. Service the DD issue request.

Freeze / unfreeze an account.

6|Page

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.

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.

7|Page

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 institutions 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 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 :-

8|Page

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 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 eBanking 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.

9|Page

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.

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

10 | P a g e

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 Banks 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
borrowers 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 Banks exposure to a single entity or a group of related entities, and
risks of Banks exposure to a single entity related with the Bank.

Investment risks include risks of Banks 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. 11 | P a g e

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.

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.

12 | P a g e

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.

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 13 | P a g e

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.

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 65.89%

May2006 45.67%

May2007 55.56%

May2008 60.56%

May 2009 65.89%

Growth rat 35.45%

14 | P a g e

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. 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 15 | P a g e

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: 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. 16 | P a g e

About Dena Bank

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. 17 | P a g e

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

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 Delivery channels& Resource No. of branch Total computerized branches

2006-2007

2007-2008

2008-2009

1135 1135

1160 1160 108

1184 1184 606

Out of which, Branches with core 13 Banking No of ATMs No. of employees CAPITAL & RESERVE CAPITAL Reserve(Excluding Revaluation Reserve Capital Adequacy Ratio (%) Business Total deposit % Increase Loans & Advance(net) % Increase Investment(net) 27689 17.22% 18303 28.61 9325 286.82 953 11.52 269 10120

316 9957

387 9883

286.82 1280 11.09

286.82 1662 12.07

33943 22.58% 23024 25.79 10335

43051 26.83% 28878 24.82 12473 18 | P a g e

% increase Loans & Advanceto: Priority sector Agriculture Small & Medium Enterprises Priority sector Advances in % terms Financial: Operating profit Net profit/loss Productivity Ratio: Per employee business Per branch business Asset Quality of ratio % of gross NPA to Gross Advances Ratio % of net NPA to Net Advances Ratio:

10.83

21.29

7629 3344 3158 42.03

8096 2794 3885 43.32

9715 3851 4775 41.55

635.35 201.56

656.44 356.79

726.36 422.66

4.58 44.76

5.76 54.03

7.31 66.45

3.98 1.99

2.45 0.94

2.13 1.09

19 | P a g e

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 eloyalty, with personal 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 20 | P a g e

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: 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

21 | P a g e

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 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.

22 | P a g e

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 Promptness of card delivery The performance of ATM Non staff users 9 10 Staff users 10 11 10

The service quality of ATM 8 personnel The quality of notes 10

9 12

Relative position of Dena Bank 12 ATM

Knowledge about the feature of Dena Bank ATM and use of the feature:

Table2: non staff ATM users knowledge about the feature of ATM Knowledge about the Number of users feature Percentage (%) Use of feature by

knowledgeable persons other than cash

withdrawal Yes No 12 6 66.67% 33.40 Yes No 15 (83.34%) 3 (16.66%)

Total

18

100

23 | P a g e

Table: 3 staff ATM users knowledge about the feature of ATM Knowledge about the Number of users feature Percentage (%) Use of features by knowledgeable person other than cash

withdrawal Yes No Total Comment on the positive feature of Dena Bank ATM Table 3: customer comment on positive feature Feature Non staff customer Staff customer 12 1 99.7% .3% Yes No 12 (99.7%) 1 (.3%)

Number Cash withdrawal Service personnel Off shore ATM Time saving Easy to use Prompt card delivery 24 hour service in 365 days Account activity enquiry Statement request Safety security Transfer Deposit /mail deposit Pin change Good decoration & tidiness Enquiry 14 16 14 15 16 13 15 13 12 13 12 16 15 quality of 14 ATM 15

Percentage (%) 77.78% 83.33%

Number 12 11

Percentage (%) 99.7% 84.4%

77.78% 93.4% 77.78% 83.33% 93.34% 71.7% 83.33% 71.7% 65.45% 71.7% 65.45% 93.34% 83.33%

12 13 13 10 12 11 10 9 12 13 11 12 11

99.7% 100 100 77.7% 99.7% 84.4% 77.7% 69% 99.7% 100 84.4% 99.7% 84.4% 24 | P a g e

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 Number Unsuitable location Poor money quality Unsecured Machine complexity Delay in card delivery Card locking Poor service quality Old fashioned & untidy Machine break down 17 13 15 16 15 14 15 16 16 percentage 93.34% 99.33% 71.7% 83.33% 93.34% 83.34% 77.78% 83.33% 93.34% staff Number 12 9 11 8 7 11 6 12 7 Percentage 99.7% 96% 84.4% 60% 53.7% 84.4% 49% 99.7% 53.7%

Recommendation made by customers: Tbale5: ATM users recommendation Recommendation Non staff Staff

number New ATM location Better quality currency Increase of safety feature More users friendly Increase in number of ATM Prompt card delivery Better customer service Facility to pay utility More withdrawal limit More denominator
Making more attractive decorations

Percentage (%) 99.33% 93.4% 99.33% 99.33% 77.78% 83.33% 93.4% 65.45% 83.33% 71.7% 93.4%

number 13 10 10 11 12 11 10 12 13 9 12

Percentage (%) 100% 77.7% 77.7% 84.4% 99.7% 84.4% 77.7% 99.7% 100% 69% 99.7% 25 | P a g e

17 16 17 17 14 15 16 12 15 13 16

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 Thatipur Morar Bada Response 14 12 16 Percentage (%) 77.78% 65.45% 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 customers preference for new location Location Thatipur Morar Bada Response 12 11 12 Percentage (%) 99.7% 84.4% 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 users comment on additional facilities Facilities Nonstaff Number Debit card Credit card Both None Total 10 4 6 18 Percentage (%) 55.5% 22.2% 33.3% 100 Staff Number 5 4 5 13 100 26 | P a g e Percentage (%) 38.4% 37 24.6%

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 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 cant 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. 27 | P a g e

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.

6. Increase the safety feature 7. Uses the the transparent glass. 8. Provide the licensing Arms to the security person of ATM.

28 | P a g e

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.

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

29 | P a g e

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) 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 ATMs 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? 30 | P a g e

Appendix
Use of ATM and the level of satisfaction

Location:

Point

Questionnaire

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

1. Level of satisfaction with The promptness of card delivery: The performance of Dena Bank The service quality of ATM personnel (Query response, timely action on request etc.) The quality of notes (currency) 1 2 3 4 5 31 | P a g e 1 2 3 4 5 1 2 3 4 5

2.

Do you know all the features of Dena Bank? YES

YES NO

NO

3. If yes, have you tried ever to use the facilities other then cash withdrawal? 4. If no, what is the reason behind your reluctance? o It is cumbersome

o I dont like it o Branch service is better o It cant 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 32 | P a g e

 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 33 | P a g e

Any other please specify

8. Other than ATM, do you want Debit card Credit card Both None Any other please specify 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 poor Average Good Very Thank you very much for your time, cooperation & Patience poor good YES NO

***********************************************************************

34 | P a g e

35 | P a g e