Analysis of the Negative Effects of the Automated Teller Machine (ATM) as a Channel for Delivering Banking Services in Nigeria

Chinedu N. Ogbuji, Chima B. Onuoha, Emeka E. Izogo


This paper titled, “Analysis of the negative effects of the automated teller machine (ATM) as a channel for
delivering banking services electronically in Nigeria” proposed that the ATM system of delivering banking
services not only contribute to the increasing rate of bank fraud but equally lures Nigerians into profligate
expenditure. Using a sample of 600 respondents conveniently selected from two states of the federation (Lagos and
Anambra), and analyzing the hypotheses formulated with chi-square, it was found that results were consistent with
the propositions made. Against these backdrops, it was recommended that banks should; strive to increase their
security layers to subvert the tricks of web scammers, limit the amount which customers may be allowed to
withdraw at a time and provide electronic alerts to customers’ phone for all transactions carried out on their bank
accounts through ATMs, cooperate instead of competing in stemming the ATM fraud menace and educate
customers on the need to safeguard their PINs. Government was encouraged to; promulgate laws that will guide
e-business including ATMs in Nigeria, provide employment, check the indiscriminate issuance of ATM cards by
banks and so on. Customers were advised to; avoid replying unsolicited mails and text messages, not to
compromise their PINs, maintain a separate account which is not placed under ATM if they are given to impulsive
expenditure. Interested researchers were as well given a focus for further research.

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