Share on Facebook If you ask four different people who invented the Automated Teller Machine, or ATM, there is a good chance that you may receive four different answers.
He is presently a council member of the University, representing the Congregation.
presented. In , a technical model that to ascertain the impact of ICT on the Nigerian banking sector as a function of banking reforms was proposed. Some benchmarks for evaluating the impact of ICT in the banking industry were outlined in . These benchmarks will be used to evaluate the impact of ICT on the Nigerian banking . Information Technology has over the last four decades made a tremendous impact on the organization affecting products, services, and the business processes at large. Firms have basically found out opportunities to use the Information Technology to reduce their costs, improve quality and increase their efficiency towards serving their customers. The Impact of ICT in Banking Sector. in many strategic locations both within and outside bank lausannecongress2018.com days many banks even have e-branches and ATM galleries with highly reduced human.
He is an Associate Professor of Management Information system in the above stated department. Visit for more related articles at Journal of Internet Banking and Commerce Abstract Banks have intensified their adoption and usage of ATMs as a major e-banking tool to generate substantial contributions to their operations and financial results.
Among the expectations of the banks in deploying and usage of ATMs is improving efficiency particularly cost efficiency. There is, however, no clear evidence of banks achieving the desired returns from ATMs investments in the Nigerian banking environment.
The broad objective of this study was therefore to analyze the effect of the intensity of ATMs deployment on the cost efficiency of banks in Nigeria. The specific objectives were to ascertain the determinants of ATMs deployment and to evaluate the effect of ATMs deployment on the cost efficiency of Nigerian banks.
The study was carried out on twenty two commercial banks post consolidation in which twenty were selected based on purposive and multistage sampling techniques. Secondary data obtained from the five years financial reports and internal operational records of the banks were analyzed using both descriptive and inferential statistical tools.
In ascertaining the determinants of ATMs deployment of banks in Nigeria, five factors were considered, these are bank size, bank profitability, salary level, number of banks during period of study and value of ATM transactions.
Three of the five variables were found to be significant. Also in evaluating the effect of ATMs deployment on the operating cost rate and Asset management rate of banks in Nigeria, four variables were used, number of ATMs as main independent variable and bank size, salary level as well as nonperforming loans being control variables.
Number of ATMs, bank size and salary level were found significant. The results showed that bank size, salary level and value of ATM transactions were key determinants of ATMs adoption by banks in Nigeria.
The result also revealed that the intensity of ATMs deployment made positive contribution to the cost efficiency of Nigerian Impact of ict on atms. Although earlier studies from the mid s until the mid s theoretically justified the advantages of IT, but they obtained contradictory empirical evidence, empirically weak or no link between ICT and firm performance.
Brynjolfsson, ; loveman, ; Roach,; Strassmann,Subsequent researches have provided empirical evidence of positive and statistically significant relation between ICT investment and some measures of business performance. Dewan and Min, ; Lichtenberg,; Brynjolfsson and Hitt.
They offer considerable benefits to both banks and their depositors. The machines can enable depositors to withdraw cash at more convenient times and places than during banking hours at branches Olatokun and IgbinedionThese potential benefits are multiplied when banks share their ATMs, allowing depositors of other banks to access their accounts through a bank's ATM McAndrews, Banks have become the principal deplorers of ATMs because the cost of a single transaction performed at an ATM is potentially less than the cost of a transaction conducted from a teller, as ATMs are capable of handling more transactions per unit of time than Tellers Laderman, In Nigeria the adoption of ATM by banks and its use by bank customers is just gaining ground and has burgeoned in recent times.
This has happened especially after the recent consolidation of banks, which has in all probability, made it possible for more banks to afford to deploy ATMs or at least become part of shared networks Fasan, There has been growing investment in ICT devices by banks without any definite study on the impact of these investments especially in terms of ATM deployment and cost efficiency.
This study is expected to fill this gap by analyzing the effect of the deployment of ATMs on the cost efficiency of Nigerian banks in order to justify its level of investment This study by measuring the effect of ATMs on the cost efficiency of banks, will provide more convincing evidence to understand the returns of ICT investment in the banking industry and by implication the extent to which Nigerian banks investment in ATMs has contributed to improving the cost efficiency of the banks.
To achieve the objectives above, the following hypotheses were tested: I, there are no significant determinants of ATMs deployment in Nigerian banks; ii. ATMs deployment do not have significant effect on the operating cost rate and asset management rate of Nigerian banks The findings from this study would provide useful information for banks, ATM firms and researchers to understand better the relationship between ATM investment and firms cost efficiency.
It would therefore assist management in ICT investment decision making. They were operated as elitist services designed for those desirous of exclusive service. Cards were rare and the process for obtaining them tortuous.
Agboola indicated that although only a bank had an ATM inbyfourteen of them had acquired the technology. He observed that the adoption of ICT in banks has produced largely positive outcomes such as improved customer services, more accurate records, ensuring convenience in business time, prompt and fair attention and faster services etc.
Fanawopo opined that Nigeria's debit card transactions rose by 93 per cent between January and March over the previous year's owing to aggressive roll out initiatives by Nigerian banks, powered by Interswitch Network.
According to him more than ATMs have been deployed on the network, while about 2 million cards have been issued by 23 banks as at MarchA survey conducted by Intermarc Consulting Limited revealed that ATM services provided by banks and non-financial institutions stood as the most popular e-business platform in Nigeria Intermarc Consulting Limited, ATM awareness also ranked higher than awareness level about current accounts and slightly below savings account Omankhanlen, Initially banks try to induce and encourage customers to embrace the technology by not charging customers any fees for using ATMs.
In time, some banks started charging customers for not using ATMs that is a charge for each time a customer uses a Teller for a service that could be performed by an ATM.
According to Central Bank of Nigeria CBN Annual Activity reportpost consolidation of the banks inthe number of ATM deployed by the banks in Nigeria rose from in to in with percent increase.Information Technology has over the last four decades made a tremendous impact on the organization affecting products, services, and the business processes at large.
Firms have basically found out opportunities to use the Information Technology to reduce their costs, improve quality and increase their efficiency towards serving their customers. This study investigates the effects of ATM on the performance of Nigerian banks.
Available studies have concentrated on the significant dimensions of ATM (automated teller machine) service quality and its effect on customer satisfaction with a bias against ATM producers.
Jegede. "Effects of Automated Teller Machine on the Performance . The Impact of Automatic Teller Machines On The Cost Efficiency of Nigeria. (ICT), Automated Teller Machine (ATM), ATM investments, ATM intensity, Cost Efficiency. the findings from the impact ATM deployment on the asset management rate of banks in Nigeria showed that apart from number of ATMs which made positive contribution to asset.
The ATM service qualities have a positive impact on the customer satisfaction and the demographic factors like age and educational qualification show a moderate the relationship between the ATM. The Effects of ICT on Society: ICT has had many impacts upon our lives both for the better and for the worse.
Use of ATM's have reduced the need for bank cashiers. ATM's reduce the need for bank cashiers. 4. Office Work. Traditional office work such as typists and filers have been replaced by computers.
The Impact of the Automated Teller Machine. August 4, By: Melvin Richardson. No matter who invented the ATM, no one can dispute the impact it has had on our society.
An ATM, by the way, is a machine that allows you to do banking transactions from a remote computer-operated terminal.