New E-Technology in the Banking Industry (A look at ATM Technology in Kashmir Valley)

ABSTRACT The banking sector in Kashmir has introduced the use of ATM technology to enable customers to reduce their visits in banks that they can carry out their transactions via ATM machines. Therefore this study examines the customers’ attitudes, preferences, challenges and suggestions about the feasibility of using ATM machines as an alternative to visiting banking halls. The questionnaire approach was used to collect data from a convenience sample of 500 customers of the 12 banks in Baramulla District of Kashmir. Meanwhile, most of the customers cited a number of factors that influence their attitudes towards the use of ATM machines. These factors included; convenience, efficient operation, security and privacy, reliability and responsiveness. Regression results indicate that convenience, efficient operation, security and privacy, reliability and responsiveness are very important factors that influence customers’ satisfaction. The research results reflect a positive and statistically strong relationship between ATM (Automated Teller Machine) service usage and customer satisfaction. This association meets with the findings of prior studies in ATM service quality context. This study therefore recommends that banks should reinvent the ATM by adding functionality to the machine, simplifying its use and educating the customers on the need to use ATM machines all the time. Key words: Banking sector, ATM technology, customer attitudes, cash points and transactions.