The Auto111ated teller 111achine (ATM) is one of the technological advances that brought about chnnge in the way banks provided a service to their customers. The ATM was introduced with the view to automate the operations of the banks and thus reduce the need for bank tellers and in the long run reduce costs. The view of automating the services of a bank tel ler eventuall y culminated into new and improved deli very systems for other bank products. With the introduction o f A TM charges, the ATM was also seen as a means of increasing profits for the banks.
The banks were faced with many challenges in introducing ATMs and there were equally n number of benefits and drawbacks that were associated w ith this technology. One of the aims of banks in bringing the ATM was to reduce congestion in the banks and improve service delivery to the customer but long queues and unreliable ATM service seem to characteri se this otherw ise
good intention. Against this background, this study sought to assess the benefits of this technology to both the banks and the customers as well as to identify the constraints for further action. The results of the study show th c1 t thi s technology has been a success and customers and the banks have benefited in terms of improved service and increase in business and revenue. However, there are areas that need improvement like prompt resolution of ATM queries and fau lts, poor quality notes and unstable !low or all denominations from the central bank and poor communications link. 1:inc1 1l y the study recommends a number or issues to alleviate the constraints of this service such
ns introduction of 111ore ATMs, sortin g out issues of quality notes and flow of cash, improved Communications link and reduced ATM down time.
