Bank ATM users’ perceptions towards ATM service quality: A structural equation modelling approach

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue V, May 2022 | ISSN 2454–6186

Bank ATM users’ perceptions towards ATM service quality: A structural equation modelling approach

Shamsuddeen Suleiman¹, Yasir Abdulkadir^2
1Department of mathematical sciences, Federal University, Dutisin-Ma, Katsina State, Nigeria
²Department of Mathematics and Statistics, Faculty of Natural and Applied Sciences, Umaru Musa Yar’adua, University, Katsina, Nigeria.

Abstract: This measured ATM users’ service quality perceptions and subsequently examined the relationship between service quality and customer satisfaction in the context of conventional banking system in Nigeria using structural equation modelling approach. The study adopts survey research in which questionnaires are randomly administered on customers of five banks randomly selected for the study Access Bank Plc, Fidelity Bank Plc, First Bank of Nigeria Plc, Guarantee Trust Bank Plc and United Bank of Africa Plc. Confirmatory factor analysis (CFA) was used to measure the relationships between the constructs and the indicator variables. The results of CFA retained all the indicator variables. The findings of the study also indicated that there is a strong positive relationship between ATM service quality and customer satisfaction in Nigerian banking sector.

I.INTRODUCTION

The banking sector is one of the most important service providers for a nation’s economy (Suleiman & Usman, 2016). The banking industry like any other industry is always making necessary efforts to provide quality service to ensure their customers derive maximum satisfaction. Customer satisfaction has been observed as a key strategy of every business and a benchmark against which many organizations have set their standards (Burodo, Suleiman and Yusuf, 2021). In a bid to improve efficiency in the Nigerian banking system, Automated Teller Machines (ATMs) were introduced in early 2000. However, prior to the introduction, the Nigerian banking system was characterized by frustrations and poor services occasioned by ineffectiveness and inefficiency in the services delivered ( Burodo, Suleiman and Shaba, 2019). Customers were made to queue for long hours before being served by rude and overworked bank staff who sometimes vent their frustrations on the customers. Wherever there is competition for limited resource queue is likely to occur (Koko, Burodo & Suleiman, 2018). Queues emerge when individuals requesting service, usually called customers, arrive at a service facility and cannot be served on time (Suleiman, Burodo & Ahmed, 2022). Without doubt, the introduction of ATMs has significantly impacted the banking system in many ways. For instance, it has drastically reduced these undesirable experiences and brought banking services closer to the people as it is not uncommon to find ATMs in places where ordinarily banks are not located. It has also provided a lot of reliefs for banks from the pressure of overcrowded banking halls and long queues of customers waiting to be served at teller points. However, the introduction

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