Determinants of Customer Satisfaction with Automated Teller Machine (ATM) Services

An Empirical Study of the Commercial Bank of Ethiopia, Nekemte Town

Authors

DOI:

https://doi.org/10.56741/IISTR.jmsd.002101


Keywords:

Automated Teller Machine, Customer Satisfaction, Commercial Bank of Ethiopia, E-Banking, Service Quality

Abstract

This study investigates the determinants of customer satisfaction with Automated Teller Machine (ATM) services at the Commercial Bank of Ethiopia (CBE) in Nekemte Town, within the context of Ethiopia’s rapidly expanding digital financial sector. ATMs play a vital role in improving banking accessibility and supporting financial inclusion, making customer satisfaction an important indicator of service quality and operational effectiveness. The research employed descriptive and explanatory research designs using quantitative methods. Primary data were collected from 184 active ATM users through structured questionnaires and analyzed using Pearson correlation and multiple linear regression techniques. The findings reveal that the reasonableness of transaction fees, accessibility and strategic location of ATMs, and the diversity of services available through ATM platforms significantly and positively influence customer satisfaction. Although respondents frequently reported technical malfunctions and operational interruptions, the variable representing the frequency of problems was not statistically significant in the regression model. This finding suggests that customers may have become accustomed to recurring technical issues within the banking system. The study concludes that improving ATM reliability, ensuring consistent machine functionality, expanding service features, and reviewing transaction fee structures are essential strategies for enhancing customer satisfaction and maintaining the bank’s competitive position in Ethiopia’s evolving digital banking environment.

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Author Biographies

David Nemomsa, Wallaga University

is an HR Officer at Wallaga University Comprehensive Specialized Hospital. He is actively involved in human resource administration, organizational management, and employee performance development within the healthcare sector. His professional interests include healthcare management, organizational behavior, customer service quality, and institutional effectiveness. He has participated in various academic and administrative activities related to public service delivery and organizational improvement in Ethiopia’s healthcare and education sectors. (email: devkusa948@gmail.com).

Tekalign Bekama, Wallaga University

is the Head of the Department of Public Administration at the College of Business and Economics, Wallaga University. His academic expertise focuses on public administration, governance, public sector management, and organizational leadership. He has extensive experience in teaching, research, and academic administration. Dr. Bekama has contributed to several scholarly and institutional projects aimed at improving governance systems, service delivery, and public management practices in higher education and governmental institutions in Ethiopia. (email: taka@gmail.com).

Gudata Abara Chali, Wallaga University

is a researcher and assistant professor affiliated with the Department of Management at Wallaga University in Nekemte, Oromia, Ethiopia. He focuses his work on management topics with a particular emphasis on leadership styles and their impact on employee performance within Ethiopia’s public sector. Based in Nekemte, he communicates research findings and collaborates with colleagues to advance understanding of how transformational leadership influences organizational outcomes in public institutions. (email: gudataa@gmail.com).

Lalisa Mamo Abdisa, Rift Valley University

is an Assistant Professor and Dean of the Faculty of Business and Social Sciences at Rift Valley University. He specializes in business administration, organizational management, and social science research. In addition to his academic responsibilities, he has extensive leadership and administrative experience in higher education institutions. His research interests include customer satisfaction, organizational development, public service quality, and business innovation. He has contributed to academic research and institutional capacity-building initiatives in Ethiopia. (email: lalmamo@gmail.com).

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Published

2026-05-16

How to Cite

Nemomsa, D., Bekama, T., Chali, G. A., & Abdisa, L. M. (2026). Determinants of Customer Satisfaction with Automated Teller Machine (ATM) Services: An Empirical Study of the Commercial Bank of Ethiopia, Nekemte Town. Journal of Management Studies and Development, 5(02), 327–335. https://doi.org/10.56741/IISTR.jmsd.002101

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Vol. 5 No. 02 (2026): Journal of Management Studies and Development

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Copyright (c) 2026 David Nemomsa, Tekalign Bekama, Gudata Abara Chali, Lalisa Mamo Abdisa

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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