Automated Teller Machines and Financial Service Delivery A Case Study of Backlays Bank.

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Kampala International University, College of Economics and Management
The Automated teller machine (ATM) is one of the technological advances that brought about change in the way banks provided a service to their customers. The ATM was introduced with the view to automate the operate ions of the banks and thus reduce the need for bank tellers and in the long run reduce costs. The view of automating the services of a bank tel ler eventually culminated into new and improved deli very systems for other bank products. With the introduction o f A TM charges, the ATM was also seen as a means of increasing profits for the banks. The banks were faced with many challenges in introducing ATMs and there were equally n number of benefits and drawbacks that were associated with this technology. One of the aims of banks in bringing the ATM was to reduce congestion in the banks and improve service delivery to the customer but long queues and unreliable ATM service seem to characterize this otherwise good intention. Against this background, this study sought to assess the benefits of this technology to both the ban ks and the customers as well as to identify the constraints for further action. The results of the study show th c1t this technology has been a success and customers and the banks have benefited in terms of improved service and increase in business and revenue. However, there are areas that need improvement like prompt resolution of ATM queries and faults, poor quality notes and unstable !low or all denominations from the central bank and poor communications l ink. 1: inc1 1ly the study recommends a number or issues to alleviate the constraints of this service such ns introduction of more ATMs, sorting out issues of quality notes and flow of cash, impronved Communications link and reduced ATM down time.
A research report submitted to the College of Applied Economics and Management Sciences in Partial Fulfillment for the Award of Bachelors Degree in Business Administration at Kampala International University.
Automated Teller Machines, Financial Service Delivery, Backlays Bank, Uganda