EFFECT OF AUTOMATED TELLER MACHINE ON THE PERFORMANCE OF NIGERIAN BANKS

Abstract: This study investigates the effects of ATM on the performance of Nigerian banks. Available studies have concentrated on the significant dimensions of ATM (automated teller machine) service quality and its effect on customer satisfaction with a bias against ATM producers. This study examines the effect of Automated Teller Machine on the performance of the Nigeria bank in the banking industry in Nigeria. The objective of the study was to determine the contribution of ATM on the effectiveness of the banking sector, to determine the extent to which ATM has stimulate growth in the banking system and to examine the extent to which ATM has speedily improve bank profitability. The focus of this study is on three (3) banks to include Access bank, First Bank and Diamond bank. Primary data were source of data collection for this study, and the data were collected through the use of structured questionnaire. The results indicate that less than the benefits, the deployment of ATMs terminals have averagely improved the performance of Nigerian banks because of the alarming rate of ATM fraud. Similarly, ATM service quality is less correlated to security and privacy of users and providers.