Automated Teller Machines (ATM) Adoption Strategies and Customer Satisfaction in Commercial Banks in Uganda: A Case of Centenary Rural Development Bank Branches in the Central Business District of Kampala

Abstract

The primary objective of the study was to assess the effect of ATM adoption strategies on customer satisfaction at Centenary Rural Development Bank in Kampala Central Business District. Specifically, the study assessed how perceive ease of use affects customer satisfaction at Centenary Rural Development Bank; established the extent to which perceived usefulness affects customer satisfaction at Centenary Rural Development Bank; and examined the relationship between ATMs adoption strategies and customer satisfaction at Centenary Rural Development Bank. The study used a cross – sectional research design and a mixed research approach (qualitative and quantitative approaches). A sample size of 310 respondents was selected from a study population of 1600 using of Krejcie & Morgan’s table and a response rate of 60% was obtained after distribution of the research instruments. Descriptive analysis was used where frequencies, percentages, mean and standard deviation were used. In addition, Pearson’s correlation and regression analysis were used to analyse the relationship between competitive strategies and life insurance uptake, and to determine the most significant predicator variable among the independent variables respectively. The study findings established: a significant positive relationship between perceived ease of use and customer satisfaction (r = 0.487, N=184, p = 0.000); and a significant positive relationship between perceived usefulness and customer satisfaction (r =0.493, N=184, p = 0.000). The researcher concluded that perceived ease of use and perceived usefulness of ATMs significantly contribute to customer satisfaction at Centenary bank where a positive change in customers’ perception regarding the ease of use and usefulness of ATMs would lead to a positive change in customer satisfaction. The researcher recommended that there should be sensitization of customers on the use of ATM as this will improve the clientele effective understanding on how to use ATM to make transactions, which creates a positive perception regarding the ease of use of ATM and induce customer satisfaction. The researcher also recommended that banks should provide constant security at ATM points, improve on ATM card security measures, install ATMs in more convenient and secure places and re-design ATM system user inter-face to possess more clear direction of inserting the card without try and error method as this will change the customers’ negative perception about the usefulness of ATMs thus, strengthen customer satisfaction.