ABSTRACT This study sought to examine the impact of Automated Teller Machines (ATM) and customer satisfaction of United Bank of Africa (UBA) Kansanga Branch, Kampala, by analyzing the impact of time saving and accessibility of ATM services on customer satisfaction of United Bank of Africa (UBA) Kansanga Branch. A descriptive research study design was applied where qualitative and quantitative data collection techniques were applied (Interview and FGD; and Questionnaire Method). Data was collected from 3 Key Informants (Staff), 89 customers. Analysis of data was by use of the Statistical Package for Social Scientists (SPSS) and “thematic content analysis” for quantitative and qualitative data respectively. Results obtained reflected and it was concluded that effectiveness of ATM services has resulted in positive effects towards the customers of United Bank of Africa (UBA) Kansanga Branch. Employees and customers who use ATM services were able to save time when making use of ATM service, leading to a positive impact towards the ATMs. Regarding accessibility of ATM service there was a positive effect on the effectiveness and customer satisfaction of United Bank of Africa (UBA) Kansanga Branch. Among the recommendations, management and staff of United Bank of Africa (UBA) Kansanga Branch should re-design the policies for the ATM operations aiming at implementing good services to their customers

TABLE OF CONTENTS

DECLARATION

APPROVAL

ACKNOWLEDGEMENT iv

DEDICATION

ABBREVIATIONS

ABSTRACT

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 Objective of the Study 4

1.4 Research Questions 4

1.5 Scope of the Study

1.5.1 Content Scope 4

1,5.2 Geographical Scope 4

1.5.3 Time

1.6 Significance of the Study

CHAPTER TWO 6

LITERATURE REVIEW 6

2.1 Introduction 6

2.2 The Concept of Automated Teller Machine 6

2.2.1 Evolution of Automated Teller Machine 8

2.2.2 Operation of Automated Teller Machine 8

2.3 Effectiveness of Automated Teller Machine 8

2.4 The Concept of Customer Satisfaction 9

2.4.1 Who is a Customer 9

2.4.2 Importance of Customer Satisfaction 10

vi

2.4.3 The relationship between Automated Teller Machines use and Customer Satisfaction

11

CHAPTER THREE 12

RESERCH METHODOLOGy 12

3.1 Introduction 12

3.2 Study Design 12

3.3 Population of the Study 12

3.5 Sample Size and Selection Methods 12

3.6 Methods of Data Collection 12

3.6.1. Questionnaire 12

3.6.2. Interview 13

3.6.3 Documentary Review 13

3.6.4 Focus Group Discussion 13

3.7 Sources of Data and Collection Methods 14

3.7.1. Primary Data 14

3.7.2. Secondary Data 14

3.7.3. Data Processing and Analysis 14

3.7.4. Data Presentation 14

CHAPTER FOUR 15

DATA PRESENTATION ANALYSISAND DISCUSSION OF FINDINGS 15

4.1. Demographic Characteristics 15

Table 3 Academic Qualification of respondents 16

4.2.1 Regression Analysis for the impact between Effectiveness of ATM Services and

customers satisfaction of United Bank of Africa (UBA) Kansanga Branch ..Error! Bookmark

not defined.

4.3 The Effect of Time Saving of ATM Services on Customer Satisfaction of United Bank of

Afi’ica (UBA) Kansanga Branch 21

4.3.1 Regression Analysis for the Effect between Time Saving of ATM Services and

Customer Satisfaction of United Bank of Africa (UBA) Kansanga Branch 22

4.4 The Effectiveness of ATM Service on the Customer Satisfaction of United Bank of Africa

(UBA) Kansanga Branch 25

4.4.1 Customer Satisfaction of United Bank of Africa (UBA) Kansanga Branch 29

vii

CI IAPTER FIVE .31

CONCLUSIONS AND RECOMMENDATIONS 31

5.1 Conclusions 3 1

5.2 Recommendations 31

5.3 Areas for Further Research 33

References 34

Questionnaires

Appendix I: Survey Questionnaire for United Bank of Africa (UBA) Kansanga Branch

customers 39

Appendix III: FGD-Guide for ATM Service Users 42