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Mekuanint Abera Timbula
Lecturer of Banking and Finance: Jimma University, Ethiopia
Abstract: The study focused on an assessment of service and application of visa card payment in Dshen Bank in Ethiopia. The General objective of this study was to assess clearly the service application of Dashen payment card. Both primary and secondary data would be considered, the primary data were collected from the bank’s customers and manager of the bank. The secondary data were collected from published and unpublished monthy and annual reports of the bank. The researcher would be used simple random sampling for the selection of the sample. The major findings of this study were good attitude towards ATM visa card payment, network problems, dissatisfaction with the response time for problems encountered on ATM machines, insufficient infrastructural facility for ATM visa card payment, DB give training before the service but not adequate.
Key words: ATM, customer, payment, card, VISA
Background of the study
The increasingly competitive environment in the financial service market has resulted in pressure to develop and utilize alternative delivery channels. The most recently delivery channel introduced is online or electronic banking also known as e-banking (Daniel Storey, 1997). Online or electronic banking systems give everybody the opportunity for easy access to their banking activities. These banking activities may include but not limited to: retrieving an account balance, money transfers between a user’s accounts, from customers account to someone else’s account, retrieving an account history. Some banks also allow services such as stock market transactions, and the submission of standardized accounting payment files for bank transfers to third parties (Claessensetal. 2002). It had been projected that more than 32 million households globally were banking online by 2003 (Simpson, 2002). Banks and other financial institutions have moved to e-banking in their efforts to cut costs while maintaining reliable customer service (Kolodinsky and Hogarth, 2001). It is evident that banks and other financial institutions in developed and developing countries are embracing e-banking. As technology evolves, different kinds of electronic banking systems emerge, each bringing a new dimension to the interaction between user and bank. They include Automated Teller Machine (ATM), mobile and Internet (online) banking, electronic funds transfer, direct bill payments and credit card (Gikandi and Bloor, 2010; Liaoa and Cheung, 2002). The use of these facilities is on the increase. For example, in Kenya and Singapore a recent survey indicates that there is steady increase in use of E-banking technologies such as Automated Teller Machine (ATM), mobile and Internet (online) banking, electronic funds transfer, direct bill payments and credit card (CBK 2008; Liaoa Cheung, 2002). Among these E-banking facilities, the Automated Teller Machine (ATM) is the first well known and widely adopted system that was introduced to facilitate the access of the user satisfaction .In Ethiopia, Online banking is in its infant stage. Even though, the concept of online banking implemented in Ethiopia with a single service of SMS message during late 2008, it does not show that much improvement as its age. The earliest forms of electronic and communications technologies used mainly in Ethiopian banking offices were automation devices. However, Telephones, telex and facsimile were employed to speed up and make more efficient the process of servicing clients.The concept of payment card came to the existence in the late 1940’s and early 1950’s in the United States. It has developed in the response to people’s high instant demand for bank loan to purchase house hold items payment cards can broadly be classified in to two as debit and credit cards. Debit cards are cards which are used to effect payments or withdraw money in real time by accessing the card holder’s deposit account. On the other hand credit card refers to that card which provides a certain level of credit privilege for the card holder. In case of credit cards the system will access the card holder’s per-authorized line of Rather than deposit account. Considering the in convince of the long process it takes the follow the traditional loan processing system, credit offices in one of the banks in Network, has introduced a way of making approvals of loans in advance that is before the customers selects what to buy the approved loan served as a special currently which the merchant need to agree to accept.
Statement of the problems
Most of the business to business transactions are currently taking place through the use of payment system to complete the full cycle of e-commerce. E-payment system can provide several benefits for the different players in the field as well as the overall economy. These may include, the card holder can benefit from the safe and convenient nature of using card for payment, it allows merchants to reach out to the global market and the merchant will be able to increase sales and can manage to reduce risks as well as costs related to cash management it reduces operation and processing cost at the same time, saves paper for receipts and prevent fraud through automated control. Above all these the positive impacts of e-payment card for economic development. However, there are many challenges to fully implement it as it have been assessed through preliminary study some of these are, low level of internet connection and lack of telecommunication infrastructure, high rate of illiteracy, lack of awareness remain key challenges. Even though, there were many initiative to implement e-payment system in Ethiopia, telecommunication and banking infrastructure remain key challenges in addition to the issues or difficulties of legal frame work related to payment card system. In the context of the above background information, the researcher would try to assess the service and application of ATM visa card payment in the case of Dashen bank.
The general objective of the study was to assess clearly the service (usage) and application of Dashen payment card. other objectives include:
To find out customers attitude towards payment card of Dashen Bank.
To identify factors that affects the usage of Dashen payment card.
To show customers choose using of ATM visa card payment of Dashen bank.
To identify benefits of using in payment card.
RESEARCH DESIGN AND METHOLOGY
The researcher would be used the descriptive design. Since the study would be describing phenomena as they exist. In addition to this the researcher has been also used more of qualitative form. The identified and received information or data on the characteristics of a particular problem or idea and it would be described by the mention formed.
The data used for the study would be both primary and secondary data. The primary data were collected from the bank’s customers and manager of the bank. The secondary data were collected from published and unpublished monthly and annual reports of bank. The questionnaires were used to gather the data from the customers and employee or managers of the bank.
Among the various kinds of data collection methods the researcher has been used questionnaire and interview to gather information from customers and employee to access the assessment on service and application of visa card payment in Dashen Bank .Questionnaire and interview has been administered to sample population and for payment card department. The data connected the tabulated and analyzed.
The sample size used was 340 out of the total population and equivalent questionnaires were distributed to each randomly selected branch customers. The researcher was told to distribute the questionnaire to any customer at the counter of the branches on convenience basis.
DATA ANALYSIS AND INTERPRETATION
The study analyzed assessment on service and application of visa card payment in the case of Dashen Bank. The customers’ response towards using ATM and employee or manager response has been analyzed and interred.
Demographic Data Presentation
The gender distribution of the collected data shows that out of 340 respondents (66.6%) were male while (33.3%) were female. The bank should work hard to attract more female customers. The mechanism to attract female customers could be by giving premium interest rate and bonus for their account etc.
To described the age composition of the respondents. Accordingly revealed that (30%) were less than 25 years, (33. 3%) were found the age group of 25-35 years, (23.33% were found 36-45 years and the remaining (13.3%) were greater than 45 years. This may indicate most of the bank’s customers were young age and the banking technology uses decline with age increase. This shows opportunity for the bank to work more on modern banking technologies like ATM card since the majority of its customers were young who would like to use them.
The marital statuses of the respondents were reveals that (53.33%) were married, (33.33%) were unmarried and (13.3%) were divorced. This implies that the majority of respondent were married class of customers. So the bank should be better to give incentive to attract unmarried class of societies. The level of educational status of the respondents show that (13.3%) were high school, (30%) were diploma, (46.66%) were degree holders and the rest 10% were others. This has a positive impact to expand and appeal modern technologies like ATM and as well as other banking technologies to this educated society.
Analysis of the study
The researcher examines the assessment on service and application of visa card payment in the case of Dashen Bank. To this end questionnaires were given to visa card users and interviews to the bank employee or manager.
Accordingly (66.66%) of the respondents had an account while (33.33%) of the respondents do not haven accounts as shown summary of the responses. These respondents could be money transfer users or coming to cash checks etc. These types of customers can be turned to account holders if the bank strives instead of merely serving them as a walking customer so the bank should work hard via advertisement to attract more customers.
Account holders were asked about the level of awareness on their visa card service from the asked respondents (33.33%) were responded as very good (30%) were responded as good (16.66%) were responded as fair and (13.33%) were responded as poor and (6.6) were responded as very poor. This implies majority of the respondents had enough awareness about ATM service due to experience from Dashen Bank provided orientation before the service was delivered while the rest highlighted the inadequacy of training and justified their response so, learned from friends and also from TV and radio while their advertisement.
ATM visa card users were asked about the time it take to acquire ATM visa card and from the asked respondents (56.66%) replied more than Two week , (26.66%) replied two weeks and (16.66%) replied a week. Therefore majority of the respondents responded more than two weeks and there was delaying of time to provide the ATM visa card for the customers in short period of time, so the bank should be work effectively to provide in a short period of time.
The ATM card holders were asked whether they faced problem or not in using ATM machines. According to in the table above shown (56.66%) were responded they face problem while (16.66%) were responded they did not face problem. This show that from the majority of respondent the presences of problem while using ATM machine. Hence the bank should give attention to reduce the problem in the future to satisfy its customers. For those who responded yes as there was problem in using ATM machines additional question was raised to know the problem allowing them to select more than one choice or to give additional reasons. The result summarized on table above shown system failure, system deducts balance without dispensing cash, the machine hangs ATM card while another responded the system was not convenient for use. Respondents were given opportunity to raise additional problems, if any. Problems like ATM machines not available in many places, delay in refunding wrongly deducted balance from account and no cash in ATM machine were raised as problems and the of ATM machine everywhere all banks are not inter-networked and the machine has maximum amount limitation in cash withdrawal were do not give them comfort without carrying cash note. Since these types of problems will discourage card holders to use ATM machines and defame the bank’s name, the problems should be minimized if avoiding was not possible.
Customers were asked about ATM visa card payment service in terms of security from the asked customer (33.33) were responded very good (26.66 %) were responded good (16.66%) were responded fair (13.33) were responded poor and (10) were responded very poor. This implies the ATM visa card payment service was secured. The respondents who rated it as secured justified their response by highlighting the implementation of passwords to access programs and support the organization is getting from the bank.
Respondent was asked whether using ATM visa card machines is advantageous or not. Accordingly (66.66%) were responded strongly agree on the advantage of ATM use, (20%) of card holders were responded as agreed and (13.33) responded strongly disagree. This show that ATM visa card payment is very important for individual customers because of that it provided 24 hour service and it also save time and cost.
ATM card holders were asked which type of transactions they preferred to use by ATM machines and which one by human tellers giving them the opportunity to select more than one choice. In reply to this, (6.6%) of the card holders prefer Cash withdrawal by ATM machines. (20) respondents prefer cash withdrawal from human teller. While (20%) desire their cash deposit transaction to be handled by human teller. And (20%) of the respondents prefer all types. The respondents were asked their reason why they opted one than the other method. Some said there is queue when served by teller, it avoids carrying passbook, ATM is not limited by working hours’ etc.
The feeling of card holders toward the simplicity of ATM visa card payment service against conventional bank teller service. Accordingly (53.33%) were responded strongly (30) were responded agree and (16.66) were responded strongly disagree. This show that majority of respondent preferred with the simplicity of ATM services than with the conventional bank teller service and favored ATM machines than human taller service. However, some of respondent disagree with the simplicity of ATM machines than bank tellers. From this it might be possible to indicate if the ATM related problems were improved the share of the agreed response could be increased.
Analysis and Discussion on Data Collected from interview management Dashen bank
The researcher examined the assessment on service ad application of visa card payment in the case of Dashen Bank from the point of view of ATM visa card staff manager. To this end many interview questions was given to staffs related to service and application of visa card payment system. Thus in this section responses obtained were summarized.
What does the convenience and appropriateness of Dashen bank organizational structure to the customers of ATM visa card users?
Replied that, Dashen bank organizational structure is good. DB always provides an appropriate and convenient service to ATM and ATM card payment users. Because the customers were able to get the service at a time they want effectively anywhere and also DB spreading out the e- payment service within the whole country to address the customers need. The reason for this is that the organizational structure starting from president to several E payment departments is accomplishing each and every task effectively.
What is the level of ATM machine Infrastructures facilities in your branch?
Responded as there was the existence of insufficient infrastructural facilities and justified their response by highlighting network connection, failure of electric power and other materials important for this service and small number of ATM machine and shortage of electricity.
What do you think the effectiveness of utilizing ATM visa card payment in your branch?
Responded it is good. DB always work effectively for the utilization of ATM visa card payment enhancing the performance of the banks by satisfying the needs of customers at any time anywhere, by minimizing the lining up of the customers in the branch and also by reducing the cost for print out like paper and ink.
How do you suggest ATM visa card payment in terms of security?
Replied the ATM visa card payment service is secured. Because it is secured justified the response by highlighting the implementation of passwords, to access programs, and support the organization is getting from INSA (Information Networking Security Agency) regarding security issues.
What is the attitude for customers to wards ATM visa card payment card?
Responded good and it could be said that customers currently have a good attitude towards ATM visa card payment due to extensive awareness creation activity such as advertising in Medias, broachers and other techniques.
Does the bank prepare training program for customer’s card holders regarding to ATM visa card usage?
Responded yes, DB provides an orientation before the service is delivered, however highlighted the inadequacy of training and justified. While some error occurred customers could easily get help from our bank at any time of using ATM visa card payment.
IS there any challenge the Dashen Bank is facing in establishing running ATM visa card payment?
Responded yes, indicated that there was a challenge justified by highlighting, establish awareness across the customer, updating the customer penetrating the card system that may occur after 6 months if it remains in active and also as any new system public taught it was secured. And also there is a challenge in running ATM visa card payment justified by highlighting network problem, awareness of the people, shortage of trained man power, and maintenance of machinery.
According to the study the customer’s attitude towards ATM visa card payment system is sufficient but the bank does not give adequate training for users before the service is delivered. Therefore, researchers concluded that DB does not work properly on this area.
The study revealed that the current ATM visa card payment service given by the organization is rapidly increasing. Therefore, the researcher concluded that the future of ATMvisa card payment will be bright.
ATM visa card payment service was better managing of financial transaction. Customers could bechecked their history of different accounts and do a ―what-if‖ analysis on their ATM card before affecting any transaction on the bank. This will lead to better funds management.
ATM visa payment technology helps customer for quickly access account, reduces time spending in the bank and other services. Customers who Users of ATM reduce time that spend in branch, because he/she use ATM does not need to come branches. Easily access account without support of banker simply, the customer consider the bank exist in his or her ATM card.
The utilization of ATM visa card payment is enhancing the performance of the banks by satisfying the need of customer at any time anywhere and by minimizing the lining up of the customers in the branch. Therefore, the researchers concluded that ATM visa card payment is one factor to increase the performance of the organization.
The study revealed that all ATM visa card payment services provided by DB were secured. Therefore, the researchers concluded that the organization have better security system.
According to the study the prospects of ATM visa card payment development is upgrading in materials and man power, developing the network facility and electrical power stability, preparing own network infrastructure for the banking service exclusively, Therefore the researchers concluded that the banks current activity is good but for better result the bank must give emphasis on the above points.
The fact that the ATM visa card payment users and staffs facing challenges while using payment system this lead us to conclude the infrastructural facilities for ATM visa card payment is fulfill, such as, network problem, failure of electric power and awareness of the customer so that to solve this problem the following recommendations is forwarded.
ATM service provide reach around a machine and give service whatever the time including holiday and night without any restriction can be served.
The general feelings of customers toward ATM were positive. However the study found that Problems like network interruption, delay in refunding wrong deductions, availability of ATM no cash in ATM, delay in card supply are recommended to be corrected.
The bank should convert its walking customers to account holders by appealing them through excellent service. It should alsoincrease those account holders to ATM card holders as well.
The bank should work strongly in collaboration with Ethio -telecom to develop alternative network lines rather solely relaying on telecommunication networks which have frequent link failure.
Another important factor related to the ATM visa card payment infrastructure is the reliable supply of electric power. The frequent interruption of electric power is a challenge by itself. So that, DB should be use standby generators which provide service when there was no power.
It is indispensable for the improvement of society’s social and economic life to raise public awareness of the benefits of new technologies like ATM machine due attention as an important part of their task.
Managers of financial institutions such as banks should be bold enough to invest on equipment and manpower training in the field to ensure competitiveness in modern world.
The bank should also acquire the ATM machine device to make it possible for customers to pay for goods and services using their visa card.
The bank should also facilitate training programs for employees of the bank to increase their knowledge on the field.
Banks and other financial institutions in their own way should embark on educational campaigns to increase the public awareness about the benefits of ATM visa card payment. This would help to create a cashless society, reduce risk of being lost or stolen and mitigate long queues in transacting business among others.
The bank should provide adequate training for all its ATM visa card payment customers before delivering the service.
The bank was effectively working towards customer’s attitude on ATM visa card payment system but for a better result the bank should have to supply a continuous awareness creation to satisfy the user need.
Choice the best means of advertising mechanism for the customers, consider those who live in city and those who live in rural area. More focus on the content of word, and ways of advertising is a sensitive issue for customers. The bank tries to reduce the gap between what the bank says and what actually done about advertising.
Consider the capacities and skills, know-hows of the customers about ATM visa card payment specially languages. Languages are a basic instrument to understand everything, there for the bank try to localize the language for internet banking and mobile banking in order to understand more about e-banking and function well.
Educate customers in detail about ATM visa card technology helps customer for quickly access account, reduces time spending in the bank and other services.
Customers who Users of ATM banking reduce time that spend in branch, because he/she use ATM visa card does not need to come branches.
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