The Adoption of Automatic Teller Machines in Commercial Bank of Ethiopia.
Abstract: – ATM banking is a crucial aspect of today’s applied technology that offers unlimited possibilities as a strategy to attract and retain customers. In addition to that it has changed the pattern in performing their business. The Ethiopian banking industry is also shifting in the advent of this ATM technology to put both the banks and the customers in a win-win situation. Hence, the researcher attempted to study on the adoption of Automated Teller Machine (ATM) in Commercial Bank of Ethiopia (CBE) in Addis Ababa. The study was descriptive in nature and data were gathered through questionnaires and document analysis. In order to achieve the objective of the study, mixed use sampling techniques were used. A sample size of the study was (n = 320). Data collected with structured questionnaire was analysis by inferential statistics. The major results were the determinant variables have significantly affected the adoption of ATM in CBE in the case of Addis Ababa customers. Based on these findings, conclusions were drawn and some feasible recommendations were made.
Keywords: – ATM, Adoption, Commercial Bank of Ethiopia
I.
INTRODUCTION
A smart person no longer needs to carry a wallet-full of paper money on the pocket. All they need to do is fish out an ATM (automated teller machine) card, insert it in the slot, punch in a few details and go home with hard cash. Nowadays most of peoples in the world are being adopting ATMs. The first ATM was developed and built by Luther George Simjian and was installed in 1939 in New York by the CitiBank of New York. Though, it was removed after six months due to lack of customer acceptance (http://en.wikipedia.org/wiki/automatic teller machine). The ATM services have gone through many stages. Abor (2004) to the present day innovation where they do other functions like, funds transfers from one account to the other and paying billsbeside their sole role of cash dispensing. ATM banking is thus an important innovation that has the potential of overcoming the disadvantages arising from having human bank tellers at the center of the banking transactions; and reducing the banking costs in the long run (www.americanbanker.com). It is commonly accepted today that ATM technology has significant effects on the productivity of the organization and individuals.