INTERNATIONAL INSTITUTE FOR ADVANCED STUDIES, DHARWAD

(Affiliated to Karnatak University Dharwad, Recognized by Govt.of Karnataka. In agreement with Marshall University USA)

CUSTOMER PREFERENCE OF ATMs : AN ANALYTICAL STUDY OF CHOSEN BANKS

A Project Report Submitted to Karnatak University, Dharwad in Partial fulfillment of the Requirement of Master in Marketing.

VISHWAS V. BHAT

SUMMATED BY

UNDER THE GUIDANCE OF DR. S.R.NARAPPANAVAR GUEST FACULTY

2005

2006

CERTIFICATE
This is to certify that the Project Report entitled CUSTOMER PREFERENCE OF ATMs: AN ANALYTICAL STUDY OF CHOSEN BANKS. Submitted by Mr. VISHWAS V. BHAT studying in Master in Marketing IV Semester, in partial fulfillment of Master in Marketing degree, under my guidance is a bonafide work and the same has not been submitted as dissertation / project work / thesis to any other University in India or to any journal or magazine for publication.

Place: Dharwad Date: 1st July 2006 Project Guide (Dr. S.R.Narappanavar)

CERTIFICATE
This is to certify that Mr. VISHWAS V. BHAT is a bonafide student of International Institute for Advanced Studies, Dharwad studying in Master in Marketing IV Semester. He has submitted Project Report entitled CUSTOMER PREFERENCE OF ATMs AN ANALYTICAL STUDY OF CHOSEN BANKS in partial fulfillment of Master in Marketing degree under the guidance of Dr. S. R. Narappanavar, a guest faculty of our institute.

Place: Dharwad DATE: 31ST July 2006 PRINCIPAL (Dr. S.N. Hanchinmani)

ACKNOWLEDGEMENT
In this occasion, I would like to express my profound gratitude to all those who have helped in preparation of this project report. I wish to record my profound gratitude and sincere thanks to all the managers and the staff of SYNDICATE, CENTURION, ICICI and UTI Banks for having provided me with relevant data and co-operation in completing this project report. First of all my regard to Dr. R.G. Akkihal, Chairman and Director, IIAS Dharwad for his kind support and encouragement throughout the course. I express my regard to Dr. H.Y Kamble, Chairman and Dean Department of Commerce, Karnataka University Dharwad for his cooperation. I express my gratitude to our principal to Dr. S.N Hanchinamani for providing conducive academic environment in the college, to bring about an all around development in the student community. Thanks to my college staff for their support and help in my project. I also express deep regard to my internal project guide Dr.S.R.Narappanavar for his encouragement throughout the project.

Place: Dharwad Date: 31st July 2006 Vishwas V. Bhat

TABLE OF CONTENTS

Chapters 1 2

Title EXECUTIVE SUMMARY INTRODUCTION

Introduction Need for Study Statement of Problem Objectives of the Study Methodology Significance of the Study Limitations of the Study Chapterisation

Page No. 1

ATMs IN CONTEMPORARY BANKING:

A theoretical framework Profiles of banks covered under the study

ANALYSIS AND DISCUSSION Research findings Suggestions CONCLUSION AND SUGGESTIONS

Bibliography Questionnaire

CHAPTER 1
EXECUTIVE SUMMERY
The history of banking has its roots in merchant banking, which was developed in ancient and medieval times. The term BANK is derived from the Italian word BANCO, which meant a bench used by the money lenders of those days. Banking during those times mainly meant moneylending, financing wars and incidentally assisting business with credit The present structure of Indian banking consists of RBI at the apex, SBI and its subsidiaries, 20 other public sector banks and several private banks. The private banking sector consists of scheduled, non- scheduled, commercial and co-operative banks. The banking policies and operations are regulated by RBI as per Banking Regulation Act 1949 and RBI Act of 1935. As traditional ways of banks functioning did not prove efficient, growing needs of the households, business and industrial sector were not met by the banking traditional service ATMs were introduced in the 1970s; By the early 80s, banks began to take advantage of improvements in telecommunications technology and formed shared ATM networks with other banks, allowing customers of one bank to withdraw money by using ATMs of other banks. OBJECTIVE OF THE STUDY
To

know the customer preference of ATMs in Hubli and Dharwad. To know the usage and awareness of ATMs among the customer. To know the customer satisfaction of the ATM users. To know the reasons for not opting ATM services by bank account holders. To make suggestions regarding the product improvement and service.

HYPOTHESES The following are the hypothesis of the study 1. More than 70% of the respondents prefer ATM service instead of traditional banking service. 2. More than 50% of the respondents are satisfied with the overall services provided by the ATMs.

DATA COLLECTION The project is based on both the primary and secondary sources of information. Since the problem is very clear descriptive research design and the survey is conducted with the help of a structured questionnaire. The data collected is according to the customer response. Two separate questionnaires are designed i.e. one for users and another for non-users and the research area is Hubli and Dharwad. MEASUREMENT TECHNIQUE. In this project questionnaire is used as measurement technique. Two separate questionnaires are prepared for users and non users of the ATMs SAMPLING METHOD Judgmental sampling method is used for collecting the data. RESPONDENTS Respondents Banks covered Sampling area Period SAMPLING SIZE CITY HUBLI DHARWAD FINDINGS Banks, magazines and news papers are the major sources of awareness of ATMs. Customer looks at more number of ATMs at their convenient places; service is the next priority for the customers. USERS 50 50 NON-USERS 25 25 : Users and non users of ATMs : SYNDICATE, CENTURION, and ICICI AND UTI. : Hubli and Dharwad. : 1st June 2006 to 31st July 2006.

Almost half of the users use ATMs during the evening (5pm to 8 pm). There is less usage of ATM before office hours (6 pm to 10pm). Most of the customers are not satisfied with the withdrawal limit of the ATMs. Almost half of the respondents favor their ATM services than others. 42% feel they are same. Majority of the ATM card holders prefer the ATMs services instead of traditional banking transactions. SUGGESTIONS Customers usually consider locality of ATMs, service, security, more withdrawal facility and reasonable price for owning ATM cards. So there is much scope in improving these fields. 51 percent of the customers use ATMs in the evening hours (5pm to 10pm). There is a necessity to avoid internet and network problem during the prime hours. Proper maintenance should be done to overcome the technical problems such as out of order situation, frequent repairs, temporary shut-down and satellite problems in order to provide better service to the customers. Deposit problems should be solved by allowing the customers to deposit more amounts at a time and immediately display their account balance. By the survey it is found that 62% of the respondents are willing to own ATM cards. So these potential customers should be converted in to actual customers by influencing them through proper media and promotional activities. As half of the customers are cost sensitive, cost should be reduced so that more customers are attracted to own ATM cards. Security should be provided to the ATM users, as security is the main reason for not opting of ATM services by the account holders.

CHAPTER 2
INTRODUCTION
The history of banking has its roots in merchant banking, which was developed in ancient and medieval times. The term BANK is derived from the Italian word BANCO, which meant a bench used by the money lenders of those days. The early bankers transected their money in lending activities by sitting on these benches installed in market places. It was on these benches that they used to exhibit coins of different countries. Even as early as in 2000 BC some sort of banking has been evolved by the Babylonians. The temples were used as banks and the priests functioned as financial middleman. Later however, for a few countries, bank as an organized system of money lending reduced because of religions taboos relating to receipt of interest on money lent. Banking during those times mainly meant money-lending, financing wars and incidentally assisting business with credit. The money lender was an important figure in the Indian economic life. Even today the un-organized sector of the Indian money market is comprised of many money lenders in villages and indigenous bankers in cities. These bankers accept deposits and deal in Hundies and grant loans. In the early post-independence period most of the banks came in to picture and they were owned by private organizations / individuals. In the year 1969, government of India nationalized 14 such banks and six more in the year 1980. Several foreign banks like city bank, standard chartered and HSBC etc came in to India with an entirely new system. The present structure of Indian banking consists of RBI at the apex, SBI and its subsidiaries, 20 other public sector banks and several private banks. The private banking sector consists of scheduled, nonscheduled, commercial and co-operative banks. The banking policies and operations are regulated by RBI as per Banking Regulation Act 1949 and RBI Act of 1935.

Technologies and innovations always led to change. The Indian Banking sector is not an exception to this. With the economic liberalization and globalization, the banking sector too faced severe competition from the private and global / foreign banks. This has brought drastic change in the working and management. Modernization, high level of automation and computerization took place in the entire banking operations. Traditional ways of banks functioning did not prove efficient, as they could not meet the requirements of the customers in short time spam. Growing needs of the households, business and industrial sector were not met by the banking traditional service. The banks understood the need to innovate and to launch customer friendly products in the face of growing competition from new entrants, foreign and domestic players. It was inevitable for domestic bankers to provide an efficient service system. Quality and system were to be updated to international level. Several new schemes were launched to attract the customers. One such scheme is the concept of Any Time Banking.

NEED FOR THE STUDY

The particular topic is chosen since the ATM concept is new to the market the aim is to study the product and its awareness in the general public and also the usage rate i.e., frequency of usage among the existing users. The study helps to obtain suggestions for improvement of product and service and also helps for finding out satisfaction level of customers.

STATUS REPORT OF ATMs

According to survey done by ORG MARG Zone-wise ATM usage %Consumers having ever used an ATM 14 % 11% 19% 28% 19%

GEOGRAPHY North Zone East Zone West Zone South Zone All Zones

STATEMENT OF PROBLEM:
The comprehensive statement of the problem can be thus stated as CUSTOMER PREFERENCE OF ATMs: AN ANALYTICAL STUDY OF CHOSEN BANKS.

OBJECTIVES OF THE STUDY

To know the customer preference of ATMs in Hubli and Dharwad.

To know the usage and awareness of ATMs among the customer. To know the customer satisfaction of the ATM users. To know the reasons for not opting ATM services by bank account holders. To make suggestions regarding the product improvement and service. HYPOTHESES The following are the hypothesis of the study 1. More than 70% of the respondents prefer ATM service instead of traditional banking service. 2. More than 50% of the respondents are satisfied with the overall services provided by the ATMs.

METHODOLOGY
RESEARCH DESIGN A descriptive design intended to produce accurate descriptions of variables relevant to the decision being faced without demonstrating that some relationship exists between variables. Since the problem is very clear descriptive research design and the survey is conducted with the help of a structured questionnaire. The data collected is according to the customer response. Two separate questionnaires are designed i.e. one for users and another for non-users. The data collected is then quantified using scores, percentage and aggregates, which helped in proper analysis of data. Graphs are also used in analysis for easy and quick understanding. TOOLS FOR COLLECTION:

Primary data:
Two separate questionnaires, one for users and another for nonusers, are designed and used for data collection. The data are collected personally by contacting the users and non-users.

Secondary data:
Secondary data is also collected for the purpose of study. The sources of secondary data are as follows. News papers Reports Company projects Magazines Books

SAMPLING PLAN: For the purpose of the study the population considered is Hubli and Dharwad city. Judgmental sampling method is used for collecting the data. The data is collected for both users and non-users separately in Hubli and Dharwad. Sample size used for this purpose can be interpreted as follows: CITY HUBLI DHARWAD USERS 50 50 NON-USERS 25 25

SIGNIFICANCE OF THE STUDY The study is exclusively conducted for users and non-users of ATMs in the twin city who are dispersed in different areas of Hubli Dharwad. The representative samples collected in the cities are according to the availability and in proportion to different banks. The results are based on the data provided by the respondents that are assumed to be correct information. The time frame of this study lasted for 2 months i.e. June 1st to August 31st 2006.

LIMITATIONS OF THE STUDY

Main limitation of the project is the sample size. Only a sample size of

100 is considered for users of ATM and 50 for non-users of ATM for the project work.
The survey is restricted to twin city only i.e., Hubli and Dharwad.

Analysis of the data, generated from the questionnaire is done on the assumption that the respondents divulged correct information.
The period allowed is only 60 days which is not enough to study in

depth. Questionnaire may produce errors because of the different meanings attached by the different groups of people to the same question, which leads to misinterpretation of the data.

CHAPTERISATION This study is divided in to five chapters. First chapter is executive summary which gives the in-depth view of the whole project in short. Second chapter is introduction which covers the topics Introduction itself, Need for study, Statement of problem, Objectives of the Study, Methodology, Significance and Limitations of the study. Third chapter is ATMs in contemporary banking which covers a theoretical framework of ATMs and profile of banks covered under the study. Forth chapter covers the analysis and discussion part. Fifth and final chapter gives the conclusions and suggestions based on the study.

CHAPTER 3
ATMs IN CONTEMPORARY BANKING: A THEOROTICAL FRAMEWORK AND PROFILE OF BANKS COVERED UNDER STUDY A THEOROTICAL FRAMEWORK
ATMs were introduced in the 1970s; they were set up only inside or immediately outside their banks branch offices. They were seen by banks largely as a way of saving money, by reducing the need for tellers. Even with the relatively expensive computer technology of the late 70s and early 80s, the cost of processing deposits and withdrawals via ATMs proved to be less than the cost of training and employing tellers to do the same work. To encourage customers to embrace the new technology and overcome their trepidations about putting there cheques in to a machines slot rather than a tellers hands, banks originally didnt charge customers any fees for using ATMs. Indeed, in time, some banks started charging customers for not using ATMs. Through so-called human teller fees a charge for each time a customer uses a teller for a service that could be performed by an ATM. At first, a banks ATMs could only be used by consumers who already had checking or savings accounts with that bank, through the banks proprietary ATM network. SHARED ATM NETWORKS By the early 80s, banks began to take advantage of improvements in telecommunications technology and formed shared ATM networks with other banks, allowing customers of one bank to withdraw money by using ATMs of other banks. Banks paid other ATM owners interchange fees, to cover the marginal cost of the off-us transactions by its customers on the owners machines. Banks paid the network a switch fee per transaction, plus an annual membership fee, to cover the costs of the network. Originally, these fees were not directly passed in to customers.

After all, from the perspective of a bank, banks that joined the network could advertise that their customers could get access to their money from far more locations than those banks that didnt belong. Yet the bank would not only have to pay for tellers: it wouldnt have even have to pay for the cost of building and maintaining most of the extra ATMs from which customers could access their funds. Big banks, seeking to maximize the value of the new shared networks, urged small banks to join, arguing that joining the network would be much less expensive for a small bank than building a competing network. But the big banks werent totally altruistic, even than. They needed to increase usage of their own machines to justify their own expense, and could do so most easily by adding volume from non-customer transactions. ATM CHARGES The banks realized that many people were essentially hooked on ATMs and would be willing to pay some small amount of money to use them, especially when they were traveling. A number of banks slowly began to charge fees. In the mid 1980s, then some banks began imposing a fee on their customers for using another owners ATM. These so-called foreign or off-us fees became more common in the 1990s. By the early 90s, using ATMs had become an everyday part of life for a large percentage of Americans. Young people barely even new what it was like to hand a deposit slip to a teller and ask for their $ 100 withdrawals in a mix of $ 5s, and $20s. This concept has evolved due to innovation of Automatic Teller Machines popularly known as ATMs. A customer can have money at any time by having an ATM card with the insertion of the card he gets fresh notes at any time and also the deposit is made easy. Through this financial details can be accessed from remote locations and basic transactions can be affected outside the bank. Interconnectivity of ATMs has also facilitated withdrawals from other cities, a service particularly useful for frequent travelers and businessmans. The facility of using credit cards on ATMs is also available and more recently Mutual arrangements between banks allow for the use of ATM cards on the other banks ATM as well. Now banks are competing to

expand their ATM Networks by establishing branches at non branch locations such as Airports, Shopping malls and Office complexes.

PROFILE OF BANKS COVERED UNDER STUDY

The study has been done on four banks namely SYNDICATE BANK, CENTURION BANK, ICICI BANK and UTI BANK.

SYNDICATE BANK NETWORKED ATM SERVICES

Syndicate Bank Global / ATM Debit Card

Syndicate Bank Global Debit/ATM Card brings you the convenience of accessing your money ANYTIME & from ANYWHERE Globally. You can transact in any currency, but pay in Indian Rupees. It is a CONVENIENT eWALLET valid in India & abroad with VISA Power. The Card is offered FREE OF FEE for all eligible accounts with any of Syndicat-e-banking (CBS) branches and select Non-CBS branches of the Bank. FEATURES OF THE ATM CARD:
1. Syndicate Bank Global Debit Card is issued in association with VISA. 2. Acceptance at following locations-

LOCATION All ATMs of Syndicate Bank

LOGO

PURPOSE For Cash Withdrawal, Balance Enquiry, Mini Statement & Change of PIN through over 350 ATMs For Cash Withdrawal & Balance Enquiry through over 16,000 ATMs in India and over 10 lakh ATMs globally For purchases through over 1.88 lakh MEs in India and over 24 million MEs globally For Cash Withdrawal & Balance Enquiry through over 2,000 ATMs

Other Banks ATMs displaying VISA Logo Merchant Establishments Displaying VISA Logo All CashTree ATMs

3. Eligible Customers: All individuals (including NRIs but excluding minors, blind & illiterate persons) maintaining individual or joint (operated by any one) Savings Bank, Current or Overdraft A/cs. All Proprietorship Firms maintaining Current or Overdraft A/cs. Unto three accounts of a person with same Customer ID with the Bank can be linked to a Debit Card. However, at other Banks ATMs & Point of Sale (POS) terminals, the Debit Card would be honoured only if required balance is available in the Primary (Main) account linked to the Card.

4. Usage Limits: S. No A B C Type of Transaction CARDS ISSUED BY CBS BRANCHES CARDS ISSUED BY NON-CBS BRANCHES Value in Indian Rupee or equivalent Foreign Currency Rs.100/Rs.100/(Rs. one hundred (Rs. one hundred only) only) Rs.10,000/Rs.5,000/(Rs. ten thousand (Rs. five thousand only) only) Rs.25,000/Rs.15,000/(Rupees twenty five (Rupees fifteen thousand only) thousand only) No restriction Rs.10,000/(Rs ten thousand only) No restriction Rs.5,000/(Rs five thousand only)

D E

Minimum Value of any transaction at ATM or POS Maximum Value per transaction at ATM or POS Maximum Value of on-line transactions per day at ATM or POS or both put together Number of transactions permitted per day Maximum permissible value of off-line transaction

SYNDICATE BANK NETWORKED ATMs IN DHARWAD

Subhas Road

Subhas Road Dharwar 580 001 SDM College Campus, Industrial Area, Sattur Dharwar 580 002 Karnataka University Campus, Pavate Nagar, Dharwar 580 003

Sattur

University Campus

SYNDICATE BANK NETWORKED ATMs IN HUBLI

KIMS

KIMS Campus, Vidyanagar, HUBLI. PIN 580022. Pune Bangalore Road, Vioyanagar, Hubli 580 031 Aswamedha Trade Centre, Dajibanpet, Super Market, Hubli 580028.

KLES College Campus

Super Market

CENTURION BANK ATMs One of the competent and reputed banks in providing ATM service is Centurion Bank. It has counters both in Hubli and Dharwad. Its Hubli counter is located in the club road. It offers Vantage-24 card which can be used in 775 counters 46 cities throughout India and at over 5,30,000 ATMs in more than 100 countries worldwide, which displays the cirrus logo. It can also be used at more than 6030 Maestro terminals at merchant establishment in India and at over 5mn. Maestro terminals around the globe. It can also be used in Indian Banks Association promoted swadhan counters of 37 banks. It is also known for its quality service. 1. RD Baddi Mansion, # 123, Club Road, Hubli - 580 028
2. CSI College of Commerce Campus

College Road, Dharwad - 580 001. UNIT TRUST OF INDIA BANK (UTI BANK)

After-office hours banking is what UTI Banks Trust 24 ATM card offers the customers. Customers can operate their account anytime, via Trust 24, Banks ATM facility. So the money customers deposit with Bank is always accessible to customers, irrespective of office hours: customers can have all the money they need. Access through a wide network of ATMs, countrywide. Banks Trust 24 ATM card allows customers to access their account from any of the ATMs of the bank located across the country. Besides this, Banks ATMs also provide access to domestic as well as international Mastercard affiliated Credit/ Debit cards. At the end of June 2006, the Bank increased its reach to 264 cities, towns and villages across the country through 1959 ATMs. FEATURES With the UTI Bank ATM card, customers can: Operate multiple accounts with a single ATM card of the bank.

Withdraw up to Rs.20, 000 per day per card subject to the balance in your account.

Deposit up to 30 notes at one time. You can also deposit your cheques through the ATM Check the balances of all accounts linked to the ATM card. Transfer funds between your predefined accounts with us. Request for a cheque book / statement of account Mini-Statement - you can get a mini-statement listing the last five transactions in any of your accounts linked to your ATM card.

Change Personal Identification Number (PIN)

UTI BANK ATMs IN HUBLI Shri Shivsheel Multiplex, Opp: New Bus Stand, Gokul Road Hubli 580030 Kalburgi Plaza, 163/20A, Main Road, Deshpande Nagar Hubli 580029 Mehta Chambers, Opp - Royal Family Hall, Keshwapur Hubli 580023 Sri Krishna Bhavan, Lamington Road Hubli 580020 Hig -2,1St Cross, Near Cancer Hospital Bus Stop, Navanagar Hubli 580025 Akalwadi Complex, Pb Road, Vidyanagar Hubli 580031

ICICI BANK

ICICI Bank is Indias second-largest bank with total assets of about Rs.125, 229 crore and a network of over 450 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail consumers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Banks equity shares are listed in India on stock exchanges at Kolkota and Vadodara, the stock exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Banks 24 Hour ATM network is one the largest and most widespread ATM Network in India. ICICI ATMs are located in commercial areas, residential localities, major petrol pumps, airports, near railway stations and other places which are conveniently accessible to the customers. ICICI Bank ATMs features user-friendly graphic screens with easy to follow instructions. It has introduced ATMs which interact with customer in their local language for increased convenience. FEATURES Cash withdrawal: Withdraw up to Rs.25000/- per day from the account (50,000 for HNIs). Fast Cash option provides the facility of withdrawing prefixed amounts. Ultra Fast Cash option allows you to withdraw Rs.3000/- in one shot. Balance enquiry: Know the ledger balance and available balance. Mini Statement: Get a printout of last 8 transactions and the current balance. Deposit cash / cheques: Available at all full function ATMs, customers can deposit both cash and cheques. Cash deposited in ATMs, will be credited to account on the same day (provided cash is deposited before the clearing) and cheques are sent fop clearing on the next working day.

 Funds Transfer: Transfer funds from one account to another linked account in the same branch. PIN change: Change the Personal Identification Number (PIN) of ATM or Debit card. Payments: The latest feature of ATMs, this functionality can be used for payments of bills, making donations to temples / trusts, buying internet packs, airtime recharges for prepaid mobile phones and mush more. Others: Request for cheque book form ATMs and our concerned branch will dispatch it such that it reaches within 10 working days.

Charges: There is no charge levied on ICICI Bank customer for transacting on ICICI Banks ATMs. However the customers not maintaining the minimum quarterly average balance in their savings account, first 6 transactions in the quarter will be free and Rs.25 per transaction will be charged thereafter. ICICI ATMs IN DHARWAD ICICI Bank, Dharwad Branch, DHARWAD, 580001 ICICI Bank ATM Center, Saptapur Bhavi, Near Jatkar Apartment, University Road, DHARWAD, 580001 SDM Dental College Campus, Sattur, DHARWAD, 580009 ICICI Bank ATM Center, SDM Engg. College premises, Dhavalgiri, DHARWAD, 500002 ICICI Bank ATM, Station Rd,

Mamledesai Commercial Complex, DHARWAD, 580006 ICICI ATMs IN HUBLI Shop No 4 F Block, Upper Ground floor, Akshay Park, Gokul Road, HUBLI, 580030 ICICI Bank ATM, Karvar Rd, Cotton Mills, HUBLI, 580024 Desai Motors, Kopikar Road, HUBLI, 580020 Travellers Bunglow Rd, Eureka Junction, Nr Sangeeta Theatre HUBLI, 580029 ICICI Bank ATM, Hubli Gymkhana, Club Rd, HUBLI, 580029 ICICI Bank ATM, Hubli Rly Stn, HUBLI, 580020 ICICI Bank ATM, MIG 4, Nava Nagar, HUBLI, 580025 The Hans Hotel, Vidyanagar, HUBLI, 580031 ICICI Bank ATM, 81/B, Vijay Nagar, HUBLI, 580032 ICICI Bank ATM, Vishveshwar Nagar, House #180, HUBLI, 580032 ADVANTAGES OF ATMs

 24-hour access to cash Can withdraw up to Rs.10000/- per day on ATM card. The Fast Cash option saves time by providing the cash in the denominations of Rs.500/-. Balance Inquiry The Updated balance will appear on the screen and will also be printed on the transaction slip. Mini statement request Get details on last 9 transactions on account with the mini statement, along with the balance. Cheque book request Send a request for a cheque book or account statement and it will arrive at the doorstep. Fund transfer Transfer money from one of the accounts to another. Its easy. Select the account from which to transfer, and then indicate the amount and the account to which it is to be transferred. Both accounts must be linked to the ATM card and customer ID. The maximum of 5 savings and 5 current accounts can be linked. Pin change Can conveniently change the PIN (given at the time of opening the account). Stay totally in control and ensure complete security for the ATM card. Bill pay Pay cellular, telephone and electricity bills using ATM card. Any time cash deposits Cash or cheques can be deposited in to the account and the ATM will immediately print a receipt for the same.
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CHAPTER 4
ANALYSIS AND DISCUSSION
According to the research plan, 100 users and 50 non users of ATM are interviewed separately by using structured questionnaires. The research is conducted in the twin city i.e. Hubli and Dharwad.The opinions collected are coded in a master coding sheet. Based on this graphs and inferences are drawn, to have the better interpretation of the data collected. Findings are assessed and conclusions are drawn on the basis of response of the respondents. The study is conducted separately for users and nonusers, by using different questionnaires.

1. AWARENESS SOURCES OF ATMs

The below table and chart show the awareness sources of ATMs in Hubli and Dharwad. Based on respondents response the chart has been drawn. This chart helps to know the source which influences more to the customers to know about the ATMs.
SOURCES TELIVISION MAGAZINES NEWS PAPERS AT YOUR BANK FRIENDS/RELATIVES NO.OF RESPONDENTS 28 16 13 31 12 PERCENTAGE 28 16 13 31 12

A A EES W RNS
T L IS N E IV IO

1% 2 2% 8

MGZ E A A IN S

NW P P R E S AES 3% 1 1% 6 1% 3 F IE D / R NS RL T E E A IVS AYU BN T OR A K

ANALYSIS: 31% of the respondents are aware through their banks. 28% are aware through television. Magazines are in next place at the rate of 16% and then the news papers at 13%.Friends and relatives are influencing at the rate of 12% and they are in the last place. INFERENCE: From the above analysis, we can say that the banks are the main source of awareness to the customer. They influence their existing customer to become their ATM customer. Television and magazines also have the considerable influence in creating awareness. News papers and friends and relatives are at the last place.
2.

CARDS OWNED BY THE RESPONDENTS

The table and chart show the cards owned by the respondents. These help the viewers to know the bank which is having more card holders in the twin city.
BANKS ICICI SYNDICATE CENTURIAN UTI NO.OF RESPONDENTS 43 28 17 12 PERCENTAGE 43 28 17 12

CARDS OWNED BY THE RESPONDENTS

50 40 30 20 10 0
UR CE NT

43 28 17 12 NO OF CARDS

IA N

CA TE

IC IC

ANALYSIS: Out of the total respondents interviewed 43 people own

ICICI, 28 people own SYNDICATE, 17 people own CENTURION and 12 people own UTI ATM cards. INFERENCE: In the twin city, ICICI Bank ATM card holders are more compared to other three banks.

3. REASONS FOR SELECTING A PARTICULAR BANK TO

SY N

DI

UT

OWN ATM CARD

The chart and the table show the reasons for choosing the particular banks ATM card among the four. The chart also helps to know the services which customer prefers more to opt for an ATM card.
REASONS LOCALITY SERVICE SECURITY MORE WITHDRAWAL COST NO.OF RESPONDENTS 32 24 17 14 13 PERCENTAGE 32 24 17 14 13

R A O S FO C O E E S N R H IC
SER E VIC
14% 13% 24%

SEC R Y U IT LO ALIT C Y LESS C ST O

17% 32%

M R O E W H R AL IT D AW

ANALYSIS: Out of the total respondents 32% consider locality 24% consider service and 17 % consider security. Withdrawal facility was considered by 14% of the respondents and the pricing factor is considered by 13% of the card owners. INFERENCE: Customer looks at more number of ATMs at their convenient places, service is the next priority for the customers. Security, withdrawal and the price are the next factors in owing ATMs.

4. USAGE TIME

The chart and the table show the time which the customers use ATM services more. This helps at the time of making the suggestions to the bank regarding the ATMs.
TIME 5PM -8PM 10PM-5PM 8AM-10AM AFTER 10PM 6AM-10AM NO.OF RESPONDENTS 31 28 20 11 10 PERCENTAGE 31 28 20 11 10

CHART SHOWING USAGE TIME

PERCENTAGE 40 30 20 10 0 28 10 31 20

11

PERCENTAGE

ANALYSIS: The above graph shows that 31 % of the respondents use ATM mostly between 5PM to 8 PM, 28 % use during office hours. i.e. 10 AM to 5 PM, 20% use between 8 to 10 PM, 11% of respondents use after 10PM and 10% use before office hours. INFERENCE: Almost half of the users use ATMs during the evening. That is more between 5PM to 8 PM (31%), and 8 to 10 PM (20%). There is less usage of ATM before office hours.

5. USAGE RATE

6-1 0A M 10 -5P M 5-8 PM 8-1 0A M AF TE R1 0P M

TIM E

The below chart and table is drawn in order to know the usage rate of the ATMs. These help the viewers to understand easily how often the users use the ATMs in a month.
TIMES 10 TO 20 20 TO 50 5 TO 10 OCCASIONALLY NEVER NO.OF RESPONDENTS 58 18 15 7 2 PERCENTAGE 58 18 15 7 2

CHART SHOW ING USAGE RATE

PERCENTAGE 80 60 40 20 0
TO 5

58 15
10 20

18

PERCENTAGE 7
NE VE R NA L

TO

TO 20

NO.OF TIMES USED

ANALYSIS: 58 % of the respondents use ATM cards for only 10 to 20 times a month. 18 % use 20 to 50 times a month. 15% use ATMs 5-10 times a month. 7 % use occasionally and 2 % not use their card. INFERENCE: Majority of the users use ATMs 10 to 20 times a month. There is no much heavy usage. i.e.58%. Only 18% use ATMs at the rate of 20 to 50 times a month. Occasional users contribute 7% and 2% are the non users of ATMs.

6. SATISFACTION ABOUT ATM SERVICE

CC AS IO

10

50

The chart and table show the satisfaction about the present services provided by the ATM service providers. By the help of this chart we can see the percentage of satisfied customers with the present services provided by the ATMs.

SATISFACTION YES NO

NO.OF RESPONDENTS 66 34

PERCENTAGE 66 34

SERVICE SATISFATION OF ATMs

80 60 40 20 0 YES NO PERCENTAGE

66 34

ANALYSIS: 66% of the respondents are satisfied with the service provided by the ATM. 34% are not satisfied with the service. INEFERENCE: Majority of the respondents are satisfied with the present system of service. Some are not satisfied and they ask for improvement. Overall service is satisfactory.

7. SATISFACTION ABOUT THE WITHDRAWAL LIMIT

The table shows the customer satisfaction of the users with the withdrawal limit of the ATMs prescribed by the bank. To understand this in a better way the below chart has been drawn.
SATISFACTION NO YES NO.OF RESPONDENTS 73 27 PERCENTAGE 73 27

SATISFACTION ABOUT THE WITHDRAWAL LIM IT

100 50 27 0 YES NO 73

ANALYSIS: 73% of the respondents say that withdrawal limit prescribed is not sufficient. Only 27% of the respondents say that, withdrawal limit is sufficient. INFERENCE: Withdrawal limit is not sufficient can be concluded from the above response. They ask for increase in the withdrawal limit. Most of them are having business background. Only 27% not need any improvement in the prescribed withdrawal limit.

8. COST OF THE ATM SERVICE

The chart and table show the customer satisfaction with the cost of the ATMs. The cost of service is a major factor, as it plays a vital role while opting for the ATM cards by the account holders.

SATISFACTION YES NO

NO.OF RESPONDENTS 53 47

PERCENTAGE 53 47

CHART SHOWING SATISFACTION WITH THE COST

NO 47%

YES 53%

ANALYSIS: 53% of the respondents agree with the cost of the ATM service.47% are not satisfied with the cost. INFERENCE: Cost of the ATM service is affordable in some cases. But still almost half of the customers feel that it should be less.

9. COMPARISION OF OWN ATM SERVICE WITH OTHERS

The table and chart show the opinion of the respondents about their banks, compared to other three banks. To understand the opinion of the customers is important from banks point of view, as it helps to compare them with the others.
COMPARISION SAME BETTER SAME WORSE NO.OF RESPONDENTS 42 35 23 0 PERCENTAGE 42 35 23 0

CHART SHOW ING COMPARISION

0% 42% EXCELLENT BETTER SAME 35% WORSE

23%

ANALYSIS: 42% of the respondents convey that their services are same with other banks services. 35% say that their card service is better .23% say that their services are excellent than others and no one is of the opinion that it is worse when compared with other ATM services. INFERENCE: Almost half of the respondents favor their ATM services than others. 42% feel they are same. This means the customers are having good opinion about their bank. It is noticeable that no one is of the opinion that it is worse when compared with other ATM services.

10. SATISFACTION OF OVERALL SERVICES

The table shows the customer satisfaction of the users with the overall service provided by the ATMs. To understand this in a better way the below chart has been drawn.
PREFERENCE YES NO NO.OF RESPONDENTS 63 27 PERCENTAGE 63 27

CHART SHOWING OVERALL SATISFACTION

100 50 0

63 27 YES NO PERCENTAGE

ANALYSIS: 63% of the respondents are satisfied with the overall services provided by the ATMs.27% are not satisfied with the overall service. INFERENCE: Majority of the respondents are satisfied with the overall service provided by the ATMs. Some are not satisfied and they ask for the improvement.

HYPOTHESIS

1. More than 50% of the Respondents are satisfied with the over all

services provided by the ATMs. Ho: P=0.5 H1: P>0.5 Standard Error = P (1 P) N 0.5 * 0.5 100 = = 0.0025 0.05 N=100

P Observed = 63/100 = 0.63 Z = P Observed -P Std Error = 0.63 0.50 0.05 = 2.6 > Z table value i.e. 2.6 <1.960 Hence, Ho is rejected. H1 is accepted. Therefore, more than 50% of the Respondents are satisfied with the over all services provided by the ATMs.

11. CUSTOMER PREFERENCE OF ATMs

The table shows the preference of the ATM services instead of traditional banking transactions by the card holders. The chart shows the same in the simplest way. This helps to know how much the customer prefer the ATMs instead of traditional banking transactions.
PREFERENCE YES NO NO.OF RESPONDENTS 78 22 PERCENTAGE 78 22

C H AR T S H OW IN G C U S T OM E R PR EFER EN C E

YES 78% 22% NO

ANALYSIS: 78% of the respondents prefer the ATM services instead of traditional banking.22% respondents do not prefer the ATM service. INFERENCE: Majority of the respondents prefer the ATMs instead of traditional banking transactions. Some do not prefer ATM services and they are happy with the traditional banking transactions.

HYPOTHESIS

2. More than 70% of the ATM users prefer ATM services instead of

traditional banking services in their banking transactions. Ho: P=0.7 H1: P>0.7 Standard Error = P (1 P) N 0.7 * 0.3 100 = = 0.0021 0.04 N=100

P Observed = 78/100 = 0.78 Z = P Observed -P Std Error = 0.78 0.7 0.04 = 2 > Z table value i.e. 2 >1.960 Hence, Ho is rejected. H1 is accepted. Therefore, more than 70% of the Respondents prefer the ATM service instead of traditional banking services.

12. OCCUPATION / EMPLOYMENT

The table and the chart show the occupation / employments of the ATM card holders. This will help the bank to know who the major ATM card holders are. The bank can then target the customers easily.
OCCUPATION BIZ EMPLOYEES STUDENTS PVT. EMPLOYEES GOVT. EMPLOYEES RTD. PERSONS NO.OF RESPONDENTS 35 26 20 15 4 PERCENTAGE 35 26 20 15 4

CHA SHOW RT ING OCCUPA TION

40 30 20 10 26 0 STUDENTS

35 EMPLOYEE EMPLOYEE 15 GOVT.

PERCENTA GE 20 EMPLOYEE RTD.PERSO 4

PVT.

BIZ.

ANALYSIS: The graph shows that the 35% respondents are business persons, 26% are students, 15% government employees, and the 20% are from private employee background. Only 4% are retired people. INFERENCE: Customer concentration i.e. more ATM card holders are having the business background. It is followed by students who are very much attracted towards ATMs. Private employees are also attracted by ATMs. Retired people who are having the ATM cards are few.

ATM NON-USERS:

NS

13. AWARENESS OF ATMs IN TWIN CITY

The below table and chart show the awareness level of non users of ATMs in Hubli and Dharwad city. Based on respondents response the chart has been drawn. This chart helps to know how much the non users of ATMs are aware of the ATMs.
AWARENESS YES NO NO.OF RESPONDENTS 45 5 PERCENTAGE 90 10

CHART SHOWING AWARENES ABOUT ATM'S

100 50 0 YES 10 NO PERCENTAGE 90

ANALYSIS: 90 % of the respondents are aware of ATMs and 10 % of the respondents are not aware of ATMs out of 50 respondents interviewed in the twin city. INFERENCE: From the above analysis I can infer that awareness level of ATMs is better in the twin city.

14. OPINION ABOUT ATMs IN TWIN CITY.

The table shows the opinion of the non-users of the ATMs about the ATMs. To understand this in a better way the below chart has been drawn. This helps to know the potentiality for the product in the twin city.
OPINION YES NO NO.OF RESPONDENTS 31 19 PERCENTAGE 62 38

CHA SHOW RT ING OPINION A BOUT A TMs

38%

NO YES

62%

ANALYSIS: nearly 62 % of the respondents say that ATMs are necessary. Only 38 % of the respondents say that ATMs are not necessary. INFERENCE: ATMs are necessary for the various activities of the bank can be concluded from the above response. Only 38 % of the respondents say that ATMs are not necessary. i.e. they do not need ATMs.

15. PREFERENCE OF BANKS IN TWIN CITY

The table and the chart show the customers preference towards the banks ATMs in the twin city. By the help of the chart we can understand which banks ATMs customer prefers more among the four banks.
BANKS ICICI SYNDICATE UTI CENTURIAN NO.OF RESPONDENTS 22 12 9 7 PERCENTAGE 44 24 18 14

CHART SHOWING CUSTOMER PREFERENCE

50 40 30 20 10 0
R IO N IC A TE IC IC I T U D U TI

44 24 14

18

PERCENTAGE

C E N

ANALYSIS: Out of the respondents interviewed 44% prefer ICICI, 24% prefer SYNDICATE, 18% prefer UTI and 14% prefer CENTURION Bank ATM services. INFERENCE: From the above analysis I can infer that respondents preference is more towards ICICI, next preference is SYNDICATE Banks ATM. Where as UTI and CENTURION are new to the city and respondents preference is less towards them considered to major players like ICICI and SYNDICATE.

16. REASONS FOR NOT OPTING ATM CARD

SY

The table and the chart show the factors which influences more to the customers to not opt for the ATM services in the twin city. This can utilize by the banks to attract more customers.
REASONS LESS SECURITY POOR SERVICE HIGH CHARGES WITHDRAWAL RISTRICTIONS NEVER NO.OF RESPONDENTS 16 13 11 6 4 PERCENTAGE 32 26 22 12 8

CHART SHOWING WHY CUSTOMERS NOT OPTED ATM CARD

POOR SERVICE 22% 32% 12% 8% 26% LESS SECURITY HIGH CHARGES WITHDRAWAL RISTRICTIONS LOCALITY

ANALYSIS: 32% of the respondents say less security is the reason for not opting of ATM cards. 26% of respondents say poor service, 22% says high charges and 12% say withdrawal restrictions and only 8% of the respondents say locality is the main criteria. INFERENCE: From the above analysis I can conclude that less security is the main criteria for not opting of ATM cards. High charges are the second factor according to respondents. Poor service, withdrawal restrictions and locality are respectively the other reasons.

CHAPTER 5

CONCLUSIONS AND SUGGESTIONS

This project work has been carried out in order to know the customer preference of ATM services. The research is also conducted to know the customer satisfaction, the reasons for not opting the ATM services by the customers and to make suggestions regarding product improvement. The research is restricted only to Hubli and Dharwad twin city. The time taken for the project is 2 months i.e. 1st June 2006 to 31st July 2006. Judgmental sampling plan is used to collect the data. The data collected are then analyzed by using graphs and statistical tools. Based on these analyses I found several factors relating to ATMs. They are presented below:

RESEARCH RESULTS AND FINDINGS.

I. Banks, magazines and news papers are the major sources of awareness of ATMs. II. In the twin city, ICICI Bank ATM card holders are more compared to other three banks. III. Customer looks at more number of ATMs at their convenient places; service is the next priority for the customers. Security, withdrawal and the price are the next factors in owing ATMs IV. Almost half of the users use ATMs during the evening (5pm to 8 pm). There is less usage of ATM before office hours (6 pm to 10pm).
V. Majority of the users are not heavy users of the ATM services

i.e.58%. Only 18% use ATMs at the rate of 20 to 50 times a month. VI. Most of the customers are not satisfied with the withdrawal limit of the ATMs. VII. Cost of the ATM service is affordable in some cases. But still almost half of the customers feel that it should be less

VIII. Almost half of the respondents favor their ATM services than others. 42% feel they are same. This means the customers are having good opinion about their bank. IX. Majority of the respondents are satisfied with the overall service provided by the ATMs.
X. 78 percent of the ATM card holders prefer the ATMs instead of

traditional banking transactions XI. Customer concentration i.e. more ATM card holders are having the business background. It is followed by students who are very much attracted towards ATMs. Private employees are also attracted by ATMs. Retired people who are having the ATM care are few. XII. Majority of the non users of the ATM services are aware of the ATM services. XIII. From the above analysis I can conclude that less security is the main criteria for not opting of ATM cards. High charges are the second factor according to respondents. Poor service, withdrawal restrictions and locality are respectively the other reasons.

SUGGESTIONS Based on research results and findings some suggestions are summarized below.
1. Banks play a major role in influencing the customers to opt for the

ATM services, television and news papers must be used to the fullest extent to influence the customers 2. Customers usually consider locality of ATMs, service, security, more withdrawal facility and reasonable price for owning ATM cards. So there is much scope in improving these fields.
3. 51 percent of the customers use ATMs in the evening hours (5pm to

10pm). There is a necessity to avoid internet and network problem during the prime hours. 4. Proper maintenance should be done to overcome the technical problems such as out of order situation, frequent repairs, temporary shut-down and satellite problems in order to provide better service to the customers. 5. Deposit problems should be solved by allowing the customers to deposit more amounts at a time and immediately display their account balance. 6. More bank branches should be set in other cities to access money anywhere, any time (online). 7. As many banks are working offline, interconnection with other banks should be provided to access money anywhere, any time.
8. Service charge should be reduced to encourage more withdrawal for

the customers.
9. By the survey it is found that 62% of the respondents are willing to

own ATM cards. So these potential customers should be converted in to actual customers by influencing them through proper media and promotional activities.

10.As half of the customers are price sensitive, price should be reduced so that more customers are attracted to own ATM cards.
11. Security should be provided to the ATM users, as security is the main

reason for not opting of ATM services by the account holders.

BIBILOGRAPHY / REFERENCES.

1. Marketing Research By Donald S. Tull & Del I. Hawkins.

2. Marketing and Management By Philip Kotler.(New Delhi, Prentice

Hall of India 1999) 3. Marketing Research (The Dryden press illionois, 1979) 4. INTERNET www.syndicatebank.com www.centurianbank.com www.icicibank.com www.utibank.com

A MARKET RESEARCH ON ATMs QUESTIONNAIRE--ATM USERS Dear sir/madam, I the student of Master in Marketing, International Institute for Advanced Studies Dharwad, doing a Marketing Research project on ATMs titled Customer preference of ATMs: An analytical study of chosen banks in Hubli-Dharwad. Hence I would be grateful if you would spare your valuable time and co-operate by answering few questions to the best of your knowledge. I assure you that the information collected will be used for academic purpose only and this will help your banker to provide better services to you. 1) How did you come to know about ATMs? a) Television b) Magazines c) News papers d) At your bank e) Others specify 2) Which ATM cards do you own? a) CENTURION c) ICICI b) SYNDICATE d) UTI

3) What factors necessarily made you to opt for ATM card from this bank only? a) Service b) Security c) Locality d) More withdrawal facility 4) Whether ATM facility is available as per your requirement? a) In terms of time Yes / No b) In terms of location Yes / No If No at which place do you require ATM other than branch premises? Please specify a) b) c) d)

5) When do you require ATM mostly? a) Before office hours /06am to 10 am b) During office hours / 10 am to 5 pm c) After office hours/5 pm to 8 pm d) After office hours / 8 pm to 10 pm e) Late night say after 10 pm 6) How often you use the card? a) 5 to 10 times a month c) 20 to 50 times a month e) Never b) 10 to 20 times a month d) Occasionally

7) How do you term it for your usage? a) Withdrawal b) Accessibility c) Emergency d) For Fashion? Status 8) Are you satisfied with services provided by ATM? a) Yes b) No 9) Whether the withdrawal limit prescribed in ATM is sufficient? a) Yes b) No 10) What are the additional services availed by you from ATM? Please specify a) b) c) d) 11) Are you satisfied with cost of this service? a) Yes b) No 12) How much are you prepared to pay for usage of ATMS if additional service like Linking of other banks ATMs etc are provides. Please specify__________________________ 13) Along with these services what are the additional facilities you expect from banks with respect to ATM cards? a) b) c) d)

14) Have you faced any problems with ATM usage? a) Yes b) No If Yes nature of problems faced? a) b) c) d) 15) How do you compare your ATM service with other banks ATM service? a) Excellent b) Better c) Same d) Worse 16) How do you rate your ATM card system? a) Excellent b) Good c) Average d) Poor 17) Considering the service / benefits / facilities which banks ATM service do you think is better? a) CENTURIAN b) SYNDICATE c) ICICI d) UTI 18) Are you satisfied with the overall services provided by the ATMs? a) Yes b) No If NO please specify the reason 19) Any suggestion for improvement of the ATM system? ________________________________________________ 20) Do you prefer ATM services instead of traditional banking? a) Yes b) No 21) How do you describe person having ATM? ________________________________________________ 22) Your profession / employment / occupation please ______________________ 23) Monthly income a) Less that Rs5000 c) Rs.10001 to Rs.15000 e) Above Rs.25000 b) Rs.5001 to Rs.10000 d) Rs.15001 to Rs.25000

24) Name: _____________________________________________ Sex ________________ Education_____________ Age ________________ Address _____________________________________________ _____________________________________________ _____________________________________________

Phone No _____________________________________________ E-mail Id _____________________________________________

Signature

THANK YOU VERY MUCH FOR SPARING YOUR VALUABLE TIME

A MARKET RESEARCH ON ATMs QUESTIONNAIRE ATM NON-USERS Dear sir/madam, I the student of Master in Marketing, International Institute for Advanced Studies Dharwad, doing Marketing Research project on ATMs titled Customer preference of ATMs: An analytical study of chosen banks in Hubli-Dharwad. Hence I Would be grateful if you would spare your valuable time and co-operate by answering few questions to the best of your knowledge. I assure you that the information collected will be used for academic purpose only and this will help your banker to provide better services to you. 1) Are you aware of ATM service? a) Yes b) No If Yes which ATM services you are aware of please specify a) b) c) d) 2) How did you come to know about ATMs? a) Television b) Magazines c) News papers d) In your bank e) Others specify__________________________ 3) Do you think ATM is necessary? a) Yes If Yes why? a) Savings c) Security e) Emergency b) No b) Withdrawal d) Accessibility f) For Fashion / Status

4) If you want to opt for ATM card then which bank do you prefer? a) CENTURIAN b) SYNDICATE c) ICICI d) UTI

5) Why do you not opted for ATM card? a) Poor Service b) Less Security c) High charges d) Less withdrawal facility e) Locality 6) How do you describe person-having ATM? ________________________________________________ 7) Your profession / employment / occupation please ______________________ 8) Monthly income a) Less that Rs5000 c) Rs.10001 to Rs.15000 e) Above Rs.25000 b) Rs.5001 to Rs.10000 d) Rs.15001 to Rs.25000

9) Name: _____________________________________________ Sex ________________ Education_____________ Age ________________ Address _____________________________________________ _____________________________________________ _____________________________________________

Phone No _____________________________________________ E-mail Id _____________________________________________

Signature

THANK YOU VERY MUCH FOR SPARING YOUR VALUABLE TIME