Abstract

The  purpose  of  this  study  is  to  investigate the factors affecting customers’ satisfaction towards the use of Automated Teller Machines (ATMs). To address  the  research  objectives,  200 questionnaires  were  distributed  to  respondents. A  total  of  176  were returned which is equivalent to 88% of the total response rate. Data were  collected using semi-structured questionnaires and they were  organized, coded  and  analyzed using Minitab18 software. The  collected data  were  analyzed  using descriptive Statistics, correlation  and  multiple  regression  model. Descriptive analysis showed half of the respondents (50%) agreed that time saving is the main reason to use ATM services. Majority of customers use ATM Banking for Cash withdrawal services and majority of the CBE customers were satisfied by the ATM services provided to them. However, customers were facing different problems associated with ATM service. Some of the problems were the unreliable network for ATM services, limited amount of money to be withdrawn per day, reduction in balance without cash payment, bank charges for ATM services,  machine out of cash, card gets blocked or locked up and waiting in line to use ATM Machines. The multiple regression findings also revealed that responsiveness, efficiency, appearance, reliability and convenience of ATM have a significant and positive influence on customers’ satisfaction.

Key words: Commercial Bank of Ethiopia (CBE), automated teller machine (ATM), customer satisfaction, service quality.