Abstract:
Banking sector is the mirror of the economy anywhere in the world. In Sri Lanka, It is
monitored by the Bank Supervision Department of the Central Bank of Sri Lanka.
People’s Bank is the state-owned commercial bank has paid attention to provide best
customer service and to build strong customer relationship. Automated Teller Machine
(ATM) banking is the popular access channel to banking services in Sri Lankan banking
sector. Due to number of complains the first author found that there was a problem
with ATM’s service quality and customer satisfaction in People’s Bank. The main
purpose of this study was to identify the significant impact of ATM’s service quality on
customer satisfaction in People’s Bank, Bandarawela. The current study stated seven
hypotheses based on ATM’s service quality dimensions including reliability,
responsiveness, ease of use, convenience, fulfilment, security and accuracy. A
quantitative, deductive approach with positive paradigm was used in the study. The
study population was the customers of People’s Bank in Bandarawela who currently
uses ATMs. 163 customers were selected using the convenient sampling technique as
the sample. Cronbach’s alpha and KMO value ensured the reliability and validity of the
questionnaire. The data were analyzed using correlation and regression analysis using
SPSS 21.0 and Minitab 16.0 software. All dimension of ATMs’ service quality had a
significant positive relationship with customer satisfaction. Regression analysis
resulted that reliability, responsiveness, ease of use and convenience had a significant
positive impact on customer satisfaction, while security had a significant negative
impact on customer satisfaction. As, regression analysis was eliminated the fulfilment
and accuracy from regression model, there was no significant relationship of impact of
fulfilment and accuracy on customer satisfaction. The current study revealed that
ATM’s service quality generates impacts on customer satisfaction at Peoples Bank,
Bandarawela.
