Customers' attitudes towards ATMs : a Maltese perspective

Abstract

Rapid technological evolutions, globalization and financial deregulation have altered the way in which banks operate and deliver services to their customers. In particular, the enhancement in technology has resulted in an increase in the choice of service delivery channels. Nowadays, bank customers are being educated and persuaded to use different delivery channels such as automated teller machines (ATMs), telephone banking, Internet Banking (IB) and mobile banking. The shift from traditional banking to electronic banking has proved to be beneficial for both banks and customers, resulting in increased convenience and efficiency. Nonetheless, some customers are still faced with difficulties and challenges such as lack of trust in the service and fear of privacy and security. This thesis explores the adoption rate of ATMs by Maltese customers and also customers' attitudes towards ATMs. Malta has adapted very well to modern methods in order to stay in line with the changes in technology and customers' needs and wants. However, some Maltese customers still refuse to adopt ATM services and would rather conduct their transactions through a human bank teller. This research categorises bank customers into adopters of ATMs, non-adopters of ATMs and customers who make use of both ATMs and human bank tellers, and investigates the reason is behind their choice. This study shows customers' level of education is positively related to the adoption rate; people with a higher level of education are more likely to be adopters of ATMs. Occupation is also positively related to the adoption rate of ATMs, thus people who are employed are more likely to be adopters of ATMs. Age, however has a negative relationship to the adoption rate; the majority of elderly people are non-adopters while the majority of people who use ATMs are in the younger age bracket.