Automated Teller Machines in India: A Literature ...

Proceedings of GLOGIFT 13 December 13-15, 2013 Department of Management Studies, IIT Delhi pp. 1086-1105

Automated Teller Machines in India: A Literature Review from Key Stakeholders Perspectives Jyotiranjan Hota1, Saboohi Nasim2 and Sasmita Mishra3

Abstract Purpose - The purpose of this paper is to review literature on the impact of adoption of ATM technology from the perspective of customers, banks and suppliers. As per the changing demand of the customers, innovative software solutions are regularly released. Similarly, banks are deploying CRM technology to facilitate personalized needs of customers on one to one basis. Suppliers of ATMs are also under pressure to provide ATMs to banks which can meet the latest customer needs. Design/methodology/approach literature.

This paper is primarily based on a review of

Findings - The articles were categorized under two main themes- Adoption of ATM Technology and Impact of Adoption of ATM Technology .Impact of ATM Technology is further categorized into three sub themes- Customer‟s Perspectives, Bank‟s Perspectives and Supplier‟s Perspectives. This study reveals that there is a dearth of academic literature on Multi Vendor ATM Technology in developing countries .The ATM Software is to be customized with the help of personalized Technology option so as to fulfill the needs of multiple cultures in countries like India. Popularizations of biometric and multilingual ATMs are also required in Rural Areas. Originality/Values – Review on this topic has not been published in any academic journal to the best of the Author‟s knowledge. Keywords: Biometric and Multi lingual ATMs, CRM Technology, Innovative Software Solutions, Multi vendor ATM Technology, Personalized Technology.

Introduction New technological innovations are evolving in our society on a continuous basis. However, adoption and diffusion of technological innovations by societal members determines its success and continuation. In that sense, Automated Teller Machine (ATM) is not an exemption. ATMs are the first recognized machines to offer electronic access to customers. With the introduction of ATMs, banks are capable of providing services to customers outside the banking premises. 1.

Faculty Member, School of Management, Krishna Campus, KIIT University, Patia Bhubaneswar, Odisha, India, [email protected]

2.

Faculty Member, Department of Business Administration, FMS&R,Aligarh Muslim University, Aligarh, UP, India Email: [email protected]

3.

Faculty Member, School of Management, Krishna Campus,KIIT University, Patia Bhubaneswar, Odisha, India Email: [email protected]

Automated Teller Machines in India: A Literature Review from Key Stakeholders Perspectives

ATMs are intended to execute the most important function of bank. The most stimulating experience of the customers and the bankers is that the plastic card is replacing all the hassles of bank transactions such as individual attendance of the customer, banking hour‟s limitations and paper based authentications. Hence, ATMs have made hard cash just seconds away all throughout the day at every corner of the globe. Apart from this, ATMs permits customers to accomplish a number of banking functions – such as cash withdrawal from one‟s account, perform balance inquiries, applying for recurring deposit, transferring money from one account to another, paying insurance bills, charge mobiles and make small loans. Moreover, non-cash items like coupons dispensing, cinema tickets and issue of gold coins services are now possible through ATMs. Surprisingly, this vast array of activities is performed by using a plastic, magneticstripe card, and personal identification number issued by the financial Institutions. As per a survey conducted by Harris Interactive Inc. for Diebold (2006), 42% of the consumers wish for customizing their ATM preferences online and 41% think more positively of their financial institution when an ATM can remember user preference settings. Personalization enhances the experience of customers and increases the speed of transactions by omitting repetitive tasks, screens which are unnecessary and irksome .Preference of language is also memorized and usual transactions can happen at the touch of a button. ATM channels are now becoming critically important as a self service technology channel. Banks are adding more and more functionalities through open standard technology. There is a fast societal shift towards ATM as a self service personalized delivery channel of most customers. As per a report of Phoenix Interactive Design Inc (2011), the generational move towards adoption of ATM of customers as a self service banking option will continue which is personalized, functional, available 7X24 and do not require human interface. This paper is an attempt to review the vast array of literature on ATM technologies, in general, and in India, in particular. The impact of this technology is reviewed from the perspective of its three key stakeholders: Customers, Banks and Suppliers. ATM Industry: Key Trends International ATM industry is steadily increasing worldwide (Refer to Figure 1) .As per a study of retail banking research‟s Global ATM survey (2005); global ATM market will reach two million installations by 2011. While developed countries have already reached the maturity stage of ATM growth, there is ample scope of growth of ATM Industry in developing countries like China and India. As per another study of Retail Banking Research on ATM Market and forecasts for 2016, Asia pacific region is posed to have maximum ATM Growth.

Figure 1: Number of ATMs from 2006 to 2016 Source: Retail Banking Research

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Jyotiranjan Hota, Saboohi Nasim and Sasmita Mishra

According to the DGM of e-banking division of China‟s Ever bright bank Ms Yilli (2011), expressed that -China on the adoption of Multivendor ATM software project during 2006, provided a strong consistent platform for development of self service channel of the bank, and currently the bank is experiencing uniform and consistent service, better and quicker support for business, simplified ATM purchase, and centralized monitoring from head office. As per a study of a US Consultancy, Celent (2008), today‟s ATM market is shifting towards more open architectures, as marked by the rapid adoption of ATM hardware running the Microsoft Windows operating system, the emergence of multi-vendor software and the move toward TCP/ IP based networks. Many financial institutions in both the US and Europe have diverse ATM fleets that include hardware from multiple manufacturers, often as the result of growth via acquisition. But with the move to open ATM architectures, ATM software and hardware are no longer tightly coupled. As ATM manufacturers have modified their hardware to run on Windows rather than OS/2, they have also invested in developing next- generation multi-vendor software based on open standards, namely XFS. There are also issues relating to change management and software configuration management. The changes occurring along the ATM software stack in an open environment can be very challenging. So the application software is constantly changing to address user interface changes, the launching of marketing campaigns or introduction of new transaction types. Windows Security patches are also required to install frequently. Antivirus agents and firewalls are now a must at the ATM.

Figure 2: Multi Vendor Software 2013 Source: Retail Banking Research

Hensley (2010) expressed that market share of more than 66% is taken by three leading multivendor software providers. NCR is the market leader with 24% share and both KAL and Wincor Nixdorf have market share of 21% each. KAL is the only company in the top three whose focus is exclusively on ATM software. True multi-vendor software is where ATM software from one vendor runs on ATM hardware from a different vendor. The RBR study has shown that there has been an impressive increase in the number of such ATMs, rising +67% in two years from the 2007 total. McEwan (2011) expressed in his article that ATMs are expensive to buy and upgrade the software in order to keep up to date. But, with the recent software advancements, there is lots of flexibility in the running of a large network. Now all current and future upgrades can be carried out from a remote computer and will be compatible with all types of ATM‟s. The

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future aim for banks and ATM‟s is to adopt „multi-vendor‟ software across their entire ATM network. Because multi-vendor software (MVS) allow the running of any network to become more streamlined and also offer the most complete personalization (up to the highest industry standards), such facilities can help banks to reduce costs and increase revenue. ATMs world wide with multi vendor software is increasing at an alarming rate (Refer to Figure 2).

Figure 3: Multi Vendor Software 2013 Source: Retail Banking Research

Cluckey (2013) had expressed Multivendor ATMs as the norms of recent practices in banks. As per the study of retail banking research, cross vendor and multivendor deployments consists of around 740,000 ATMs which is 28% of the World‟s 2.6 million installations. Western Europe has the maximum share of machines running multivendor software. But Asia-Pacific is the largest regional market for future growth. NCR is leading with maximum market share among the multi/ cross-vendor applications worldwide (refer to figure 3). India In India, ATM Industry is on the rise at an exponential rate. In the current context, airlines, banking institutions, hotels, and retailers are using ATMs. In self service technology, ATM technology has brought a revolution. Chandnanl (2005), Managing Director of NCR, expressed his opinions with financial express on the growth of ATM industry in India as the fastest growing in the APAC region. The market leader in India is NCR and the company has acquired SBI, Corporation Bank, OBC, ICICI Bank, HDFC Bank, Citibank, HSBC, Standard Chatard and UBI as its‟ customers. NCR had invested multi million dollars by setting a manufacturing plant at Pondicherry and a management centre in Mumbai. As per RBI, ATMs were introduced to the Indian banking industry in the early 1990s initiated by foreign banks. ATM technology was used to attain the customers at a lower initial and transaction cost with hassle free services. As per RBI‟s Draft approach paper (2007), ATMs have gained importance as a delivery channel for banking transactions in India. By July 2012, number of onsite and offsite ATMs in India counted as per reserve bank of India are 100042.Now, there are emergence of brown level and white level ATMs in India. Service providers are having ownership of lease and hardware in case of brown level ATMs .The banks discharge the duty of cash handling, management and connectivity.

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In case of white level ATMs, non banking entities are permitted to set up, operate and own ATM Machines. ATMs penetration is low in rural areas of India. Biometric ATMs are suitable for rural population due to low literacy rate. As per businessline (2011), low transaction volume is making it unviable for ATM penetration in rural areas. Procurement price of ATMs ranged between Rs. 4 to 5 lakhs and Rs. 6 to 7 lakhs per ATM. Government is advising for joint sourcing of ATMs among public sector banks which can bring down the procurement cost through economies of scale. This can also provide encouragement for banks to install ATMs in unmanned rural areas. Thrissur based Catholic Syrian Bank has installed biometric ATMs at Ozhur village of Kerala to offer banking services to under-banked areas in secure and cost-effective manner. The biometric ATM has been developed by Vortex Engineering Pvt. Ltd. in collaboration with IIT Madras. Additional features like commodity price, weather information, and stock prices can be integrated into the Vortex Gramateller ATM with the help of an additional interface to the switch. On the basis of above discussion it can be said that ATM technology has become order of the day. While there is lots of efforts from the side of the bankers, suppliers and government agencies to reach out common men with respect to providing convenience in money transactions, similar amount of concern is there towards the perception and usage pattern of people. Throughout the history implementation of any technology has not been so simple. Hence, good amount of research is being done to study the technology adoption and diffusion process, customers‟ perception and attitude towards the technology and innovation management. This piece of work reviews the pertinent literature in the aforesaid area and maps out some future research agenda. Literature Review The literature of behavioral studies on ATMs has mainly focused on adoption and diffusion of technology, impact of technology adoption from customers‟ perspective, suppliers‟ perspective, and bankers‟ perspective. Major Technology Adoption Models As per the study of Norris and Yin (2008), Technology Adoption Research is almost twenty five years old and there are around eight important theories of adoption. All these eight theories are derived from the foundation of innovation diffusion and Technology acceptance model and are summarized in Table 1. The exception among eight models is the Social Cognitive Theory. Technology acceptance model is quite individual focused among eight adoption models. However, other models focus on how diffusion of innovation takes place within the firm. Oliveira and Maria (2011) have explored that there is a dearth of academic literature on reviews of adoption model at firm level used in Information Technology literature .Author discussed Diffusion of Innovation Theory and Technology, Organization, and Environment (TOE).For more complex new technology adoption, it is important to integrate more than one theoretical model to achieve a better understanding of the adoption phenomenon. Venkatesh et al.(2007) expressed that there has been remarkable progress in technology adoption research. But in many cases, technology adoption research is a replication without substantive theoretical advances. However, there are ample opportunities to make theoretical advances using our current knowledge as the starting point. These are the conclusions of the authors based on their review and comparison of major milestones of technology adoption research, Job Satisfaction research and Theory of Planned behavior. Most of the theories have emphasized on the factor influencing adoption behavior and the process of diffusion of technology. These models also reveal the individual difference and cultural difference in technology adoption (Table 1).

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Table 1: Theories of Technology Adoption

Adoption Models

Study

Insights

Theory of Reasoned Action (TRA)

Ajzen and Fishbein (1980); Fishbein and Ajzen (1975);Davis et al.1989

TRA has been most applied in consumer behavior literature. As per this model, attitude of a person and subjective norms drive a person‟s behavioral intention.

Technology Acceptance Model(TAM)

Davis,F.D., Bagozzi,RP. and Warshaw, P.R.(1989)

This theory adds ease of use and usefulness to TRA which are attitude measures .This model is quite individual focused while other models are organization focused.

Model of PC Utilization(MPCU)

Thomson et al.(1991)

This model is a modification from a particular set of variables of the proposed model of Triandis (1977) which deals with human behavior. This model has been used to predict PC Utilization. Thomson adaptation deals with information systems environment.

Social Cognitive Theory(SCT)

Bandura(1977); Compeau and Higgins(1995)

This theory explains own competence of a person in relation to the capabilities and social perception of those around them rather than how the individual perceives the technology itself. This theory is deviated from other adoption theories which are derived from the foundation of TAM and innovation diffusion.

Unified Theory of Acceptance and use of Technology (UTAUT)

Venkatesh et.al.(2003)

UTAUT‟s goal is to clarify user intention to use an Information system and further usage behavior. This is a technology acceptance model which is formulated by Venkatesh et.al. (2003).

Innovation Diffusion Theory (IDT)

Agarwal and Prasad (1998); Moore and Benbasat (1991); Rogers (1995)

This theory guides the way to increase the rate of adoption. It also explains how, when and why innovations spread through a society.

Motivation Model(MM)

Davis, Bagozzi, and Warshaw (1992)

This model explains extrinsic and intrinsic motivation.

Theory of Planned Behavior (decomposed) (DTPB)

Taylor and Todd (1995)

This model provides complete understanding of intention and usage behavior. It may also provide more effective guidance to Researchers and IT Managers who are keen to study system implementation.

Adoption and Diffusion of ATM Technology Researchers propose that the diffusion and adoption of a technical innovation is a meaningful area of study (Lozano, 1987). Many studies in this aspect have come up with diverse findings. Santos and Peffers (1998) have developed a time series of cumulative ATM adoption estimates for 1971 to 1992 and use these data to fit three models from the diffusion of innovation literature, the external, internal and mixed influence models. The results suggest that imitation and communication among industry competitors was most important, but marketing efforts by the technology vendors were also important in the first few years after the introduction of the technology. A study on ATM manufacturers reveals that diffusion of learning from initial entrants

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induced entry of diversified firms (Lane, 1989). As specific learning in the new market was not appropriate, early entrants were neither able to acquire sufficient advantages to deter the later entry nor to complete successfully. Marshall and Heslop (1993) studied the motives for use and non-use of ATMs through the use of innovation diffusion theory. They found that certain features such as convenience shopping orientation, attitudes towards ATM technology, familiarity with other technology and education are the most useful predictors of use of ATMs. Consumers with a convenience shopping orientation could take a relative advantage in using ATMs, while those adhering to a social orientation do not feel any such advantage in ATM usage. Another diffusion study found out that respondents believed in their safety in using ATMs; that ATMs were quite easy to use and fit in their way of life; that what they observed about ATMs convinced them to use it and that ATM was tried out before they use it (Olatokun and Igbinedion 2009). The works of Curran and Meuter (2005) demonstrated that multiple factors needs to be considered when introducing technologies into the service encounter and that the salient factors may vary among technologies and their stages in the adoption process. It is vital to understand technology diffusion in the banking sector in India by analyzing ATM technology and its replacement of the teller (labor). The rapid diffusion of the ATM was clearly large from 1998. This was also a time when the number of tellers was declining and the wage bill for tellers rising. The “Constant elasticity substitution model” production function model used in this paper is clearly a good forecaster of the data compared with the other cases. The estimate shows that the degree of substitutability of the teller by the ATM is high. However, the ATM is not a perfect substitute. By running counterfactual experiments, it can be concluded that both a fall in the price of ATMs and an increase in the wage bill for tellers contributed to the diffusion of the ATM (Kumar, Malathy and Ganesh, 2011).Literature on Adoption and diffusion of ATM technology provides insights to all the stakeholders in understanding its significance along with the factors of adoption and diffusion (Refer to Table 2). Table 2 : Adoption and Diffusion of ATM Technology

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Impact of Technology Adoption Changing Technology: Customers‟ Perspective Customers‟ acceptance of ATMs in Gulf States with reference to Kuwait had made a large contribution to the Kuwaiti banking industry with reduction in labor cost. The most important factors which motivate the customers to use ATMs are convenience followed by ease of use and availability of use. Convenient locations to shopping areas, avoiding the risks of carrying cash and the reliability of ATMs are also some of the factors which motivate customers to use ATMs (Haddar and Almahmeed, 1992). Moutinho (1992) discussed that the perceived service performance and usage rate are important factors in the formation of consumers‟ prolonged satisfaction. They assert that consumers‟ previous expectations about performance of ATMs shape the degree of prolonged satisfactions. Whereas negative association between degree of usage rate and outcome of consumers‟ prolonged satisfaction creates needs for development of effective service improvement program and new product developments based on multifunction operations.

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According to Rugimbana and Iversen (1994) association of customer usage patterns and perceptions of ATM attributes are useful in foundation of effective marketing strategies for Bank marketer. Accordingly, one study suggest that the measurement of consumer satisfaction can be central element of evaluation and control of strategic marketing input and implementable marketing mix programs (Goode and Moutinho, 1995). Further, they assert that total perceived quality encompasses critical factors like operational efficiency of the system, number of times the machine „closed‟ and associated length of time for it to reopen, number of mistakes related to ATM withdrawals found in customer statements and average waiting time to use an ATM due to limited availability of other machines. Financial organizations should develop ATMs which could perform more banking functions in order to get enough transaction volumes to justify the operating costs. A study conducted on South Australian customers reveals that perceptual profiles are more powerful than demographic factors in predicting ATM usage (Rugimbana, 1995). By perceptual profile they mean how and why consumers perceive ATMs the way they do. One of the perceptual variables, perceived risk, has been found out as an important determinant of overall satisfaction and desire to use ATM (Goode, Moutinho and Chien, 1996). Further. they suggest that (1) financial institutions should accomplish systematic consumer behavior studies related to ATM usage particularly on customer expectations and different types of perceived risk felt by consumers; (2) monitor consumers‟ usage rate and intention-to-use levels and segment their market accordingly, since it was found that behavioral intention can have a great deal of impact on frequency of use of ATMs; and (3)should design pricing policies with regard to the use of ATMs which take into consideration the findings resulting from the monitoring of consumers‟ levels of perceived risk. Santos and Peffers (1998) studied that the managerial decision to adopt electronic commerce applications early or wait for the technology to become more established, is not trivial. Early adoption poses considerable demand and technological risks but the rewards could worth praising. Authors made an empirical investigation of the influences on the adoption decision the ATM system to determine whether marketing efforts by hardware and software vendors, imitation of competitors or a mixture of influences affected these decisions among bank managers. Lee and Allaway (2002) studied that a new literature is evolving around the role of self service technologies like ATMs in the strategic offerings of service providers. Self service technologies (SSTs) allow consumers to help produce their own service encounters via machine interaction rather than by interacting with a firm‟s service personnel. Personal control appears to be a complex composite of predictability, controllability and outcome desirability that is associated with a global construct, probably consisting of one‟s perceived competence, superiority, and mastery over SSTs. When an SST innovation experience rates which are slower than desired, perhaps it is because customers cannot forecast the way it works, perhaps it is because the customers find it too challenging, perhaps it is because they do not see it as a considerable better option, or all of the above. Factoring personal control into a service firm‟s design of an SST and its marketing plan seems to be a promising venue to increase the success rate of an SST innovation. According to Davis, Moutinho and Curry, (1996) in order to bridge the gap between human and machine interaction, banks could try to make ATMs more user-friendly and personalized. Similarly, Plax (2004) suggests that design of ATMs for older people with an approach for personalization would reduce difficulties in usage and people with cognitive, sensory and motor problems will be benefited with these design improvements.

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Wan, Luk and Chow (2004) studied that ATM was the most frequently adopted channel, followed by internet banking and branch banking, and telephone banking was the least frequently adopted channel. Psychological beliefs about the degree to which a channel possessed certain positive attributes were more predictive of adoptions of ATM and internet banking than adoptions of branch banking and telephone banking. Demographic backgrounds were stoutly associated with adoption of all banking channels except ATM. The theory of reasoned action is less applicable when behavior is habitual, such as the adoptions of branch banking and telephone banking. A study of Curran and Mueter (2005) tested three self service technologies to examine the factors that influence consumer attitudes towards and adoption of self service technologies concludes that ATMs are there since many years and are widely adopted, Bank by phone has been for many years but not widely adopted and online banking is relatively new to the workplace. Different factors influence attitudes towards each of these technologies and offers explanations of the varying degree of acceptance found among consumers. Multiple factors need to be considered while introducing technology into the service encounter and that the salient factors may vary among technologies and their stages in adoption process. Impact of technology adoption on customers of different demographic and psychographic profiles provides different results based on their usage and perception towards ATM technology (Refer to Table 3). Table 3: Changing Technology: Customer’s Perspectives

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Changing Technology: Banks’ Perspective Introduction with new technology products like ATMs have substantially decreased the interface of the bank with the customers. Society is becoming confronted with an accelerated shift from an industrial towards information technology orientation. A new breed of technologically aware consumers have emerged (Moutinho and Meidan, 1989). Long back Cheng (1990) had predicted through various operations research techniques that banking of the future is where electronics replace paper and the ATM and home computer becomes the teller; routine transactions are handled through the use of ATMs by most of the customers, the number of people waiting for service declines. So workload for tellers reduced and their accuracy and quality of service is improved. Waiting time for each customer is also reduced. Singh and Komal (2009) discussed the impact of ATM on customer satisfaction by appraising the problems faced by customers. The ATM facilities and the factors affecting the choice of ATM along with post purchase behavior of customers on SBI, ICICI and HDFC are also studied. It has been examined that customer satisfaction level for problems is highest in SBI. The post purchase behavior rating was found to be highest with HDFC Bank. The average satisfaction level was found to be highest with HDFC bank. The ATM technology has developed to such an extent that some ATMs can remember consumer preferences as per their previous transactions behavior and customize services accordingly. Even some ATMs have internet capability which provides two way interactions with live agents, offer biometric security capability and display personalized advertisements. Internet enabled ATMs are easier to maintain as the ATMs can be connected to vendors‟ central monitoring systems (CU360 Newsletter 2009). As per a study of Retail Banking Research (Korala, 2011), ATMs improve customer service, reduce costs for the bank and increase efficiency. Banks are interested to change the software on a continuous basis and have consistent behavior across their networks. ATMs can potentially do better jobs if the experience is personalized. Another dimension in the ATM technology is the sharing of ATM network among banks. Studies on the impact of such technology on banks reveal that it is possible to realize positive effects through shared ATM network (Damar 2006). However, there are multiple factors that determine which banks realize such benefits. The author found that the geographical distribution of shared ATMs between urban and rural markets and the level of competition between banks within urban areas are shown to be vital determinants of differences in efficiency of banks. This difference between the gains associated with ATM sharing may have important implications concerning the adoption and sharing of new technology by banks in developing countries. The 1096


impact of changing ATM technology on banks provides different result based on size of banks, competition based on usage of Technology and deployment of ATM networks (Refer to Table 4). Table 4: Changing Technology: Banks’ Perspectives

Changing Technology: Vendor’s Perspective With the changing technology, the roles of the vendors are also changing. For example, to set up ATMs, ATM vendors in India such as FIS, TSI, TCBIL, Diebold, AGS, Prizm, FSS and Euronet currently use Hughes VSAT terminals (Choudhury 2011). As the author has suggested,

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Hughes is a preferred service provider of brown level ATMs in India. In brown level ATMs, the hardware as well as lease is under the ownership of the service providers whereas connectivity and cash handling and management are the responsibilities of the sponsor bank. Marr and Gerard (1993) conducted studies of Automated Teller Machines as most widely available retail banking technology. Suppliers should be, and aware that the main variables influencing consumer adoption of self service technologies in retail banking are time utility and then place utility; and the main variable discouraging adoption is a preference for dealing with humans in banking. The studies have shown that the supplier of technology have not lost contact with the needs of the marketplace. Orent (2007) studied that the integration and learning between retailers and bankers continues to influence branch optimization, as well as ATM transaction types. Consumer technology adoption curves are increasing fast and bode especially well for the ATM and self-service. Many forward thinking banks, such as First Citizens of North Carolina, are studying how to use kiosks in combination with teller-facing services to enhance and speed customer transactions, while still making teller interaction available if desired. The introduction of personalized ATM services, such as fast cash transactions and language selection, are just the tip of the iceberg compared to what retailers have accomplished through customer relationship management and frequent shopper programs. A study on ATM technology diffusion at Nigeria (Olatokun and Igbinedion, 2009) reveals that user‟s attitudes towards intention to use ATMs is influenced by the following factors: relative advantage of using ATMs, how hard it was to use ATMs, how compatibility ATMs were with the life style of the users, how much has been observed about ATMs by the users and whether users ATMs could be tested before consistent use,. The attitude of an ATM user would later affect his/her intent to use an ATM. Authors have also suggested the following strategies to enhance diffusion of ATM technology: Enhanced salience of ATM to customer‟s needs, greater compatibility of ATM to customers banking norms and life style, less complex and easy to use system that does not require a lot of mental and physical efforts to complete transactions and oppor tunities for adopters to experiment with the system before making any long term commitments.. Haytko and Simmers (2009) examined the relative importance of human encounter satisfaction and technological encounter satisfaction on overall service satisfaction. Service organizations should continue to pay attention to training their employees who have direct contact with their customers in order to improve their customers‟ overall satisfaction. Technological advances have allowed service organizations to offer its customers the convenience of self-service technology in addition to the personalized service of an employee. The human component of banking services will never disappear completely, despite the rapidly growing use of online banking tools. The level of adoption of ATM technology is high among middle aged respondents compared to the elderly people. By increasing the implementation of proprietary hardware, software and communication protocol platform of adequate quality, greater number of people might use ATMs because of the ease and accessibility provided by the usage of ATMs (Abdulwahab, 2010). Khan (2010) studied and examined that convenience, efficient operation, security and privacy, reliability, and responsiveness positively and significantly affect customer‟s perception of ATM service quality and the ATM service quality influences the customer‟s satisfaction. Rapid increase in number of automated delivery channels and customers‟ preference to use ATM because of multifaceted attributes are putting pressure on banks to respond aggressively to meet the

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customer‟s needs. The study provides inputs to banks to enhance customer satisfaction through improving ATM service qualities. To further improve service quality, TM service should provide enhanced interactivity, diversified offerings, scope for customers to participate in improving services and making the interaction memorable and pleasurable experiences. Kumbhar (2011) made a study that system availability fulfillment, cost effectiveness, security and responsiveness, efficiency, easiness and convenience and contacts are most important factors in customer‟s satisfactions in service settings. ATM service quality is the most important predictor of the customer satisfaction in ATM service quality as compared to brand reception and perceived value in ATM service. Sanda and Arhin (2011) explored that most of the bank customers who use the ATM services perceive the ATM as convenience, reliable, accurate and suitable for their banking transactions. Due to customer behavioral challenges to the proper usage of the ATM technology, banking institutions in developing economies not benefiting from its full potential as a customer service delivery tool, and also as a strategic workload reliever for tellers who service customers inside the banking halls. Customers who are satisfied with their banks display positive word-of-mouth, a greater intention to repurchase, less sensitivity to price, less tendency to change banks, and a greater inclination to complain. Portuguese users of Self service technologies (ATM, TB, and IB) exhibit a greater propensity to complain and greater price sensitivity. The study has not identified a significant relationship between SST use and satisfaction, intention to repurchase, propensity to change banks, or positive word-of-mouth (Proenca and Rodrigues, 2011).Vendors are under pressure to provide innovative ATM technology solutions as per the changing taste and usage of self service technology of the customers along with demand of banks on hardware infrastructure along with software solutions (Refer to Table 5). Table 5: Changing Technology: Vendor’s Perspective

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Methodology Nature of Selection of Articles This literature review is based on the research ar ticles, magazine ar ticles, Ph. D. Dissertations obtained from EBSCO, ProQuest, Emerald, Google Scholar, few newspapers and Google search engine. The articles were related to the ATM technology adoption, theories/ models of technology adoption, news articles on the recent trends in ATM technology, growth of ATM technology, Suppliers‟ and Bankers‟ moves in ATM technology adoption. Time Period of Articles The timeline of articles is 1975 to 2013.ATM technology is termed as a technology of the public. This is the period when ATM technology was popularized all over the world. This is when many models of technology adoption were developed. Justification for the Review Although numbers of articles have been published and reviews have been done on ATM technology, review covering three stakeholders‟ perspectives was not available. To conduct a study on the ATM technology adoption in India and to come out with specific suggestion for effective adoption of ATM technology in India, it is felt that the perspectives of all the stakeholders are to be taken into consideration. Secondly, a critical review on the technology adoption process will help in finding out the understudied areas and design a study that will through some light on the technology adoption process in a multicultural and multilingual country like India. Thirdly, extensive reviews of around 40 years literature will help readers get synthesized information on the various aspects of ATM technology adoption. Process by which Themes were Deducted The main aim of the review was to review the works on the technology adoption process. After scrutinizing all the collected articles, it was found out that none of the reviews have tried to

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give a macro view of the three stakeholders (viz.: Customer, Supplier and Banker) perspectives in ATM technology adoption. Hence, all the works were reviewed under the broad themes such as: Bankers perspective, Customers perspective and Suppliers perspective. Research Challenges and Issues From the above review we can conclude that behavioral studies and the change of technological environment of ATM technology have been very useful for the vendors and bankers; that understanding the complexities of implementation of technology is also quite pertinent always; that understanding the customer preference and perception triggers development of new technologies. Hence, as the technology is changing day by day it essential to conduct behavioral studies to measure the pulse of the market. Above review also reveals that much research has not been done from the perspective of bankers and vendors which needs equal attention. There are also several reasons for conducting such studies at India. Banks in India are now competing among themselves to provide better services to the customers on 1-to-1 basis .Even leading banks are struggling to attract customers .Banks are also going for cross selling and up selling opportunities to attract customers as per their personalized ATM transactions. The study has a very strong relevance in academic literature. To provide insight into the further development of this technology and provide more and more services to the customers, lots of studies are required in this field. Due to the presence of multiple sub-cultures, a common ATM screen design may not fulfill the requirement of all the customers. Existence of personal technology is less in countries like India. Different sets of users are possible in India with different services, marketing and interfaces, depending on their socio-economic class, expertise with ATM and/or preferences. In a developing market like India, there is a real challenge in creating technology which is not the same as developed market. More studies are necessary here to explore attitudes with technology and ATM adoption (De Angeli et al.2004). Customers have very little choice to the banks when old ATM Software was used in past with OS/2 Operating Systems. These systems were unable to incorporate customer demands. Multivendor ATM technology is now emerging in developing countries. This technology is now matured in developed countries. These ATMs have the freedom to choose different parts from different vendors and uses single ATM Software across the ATM Network. So banks do not depend on a single vendor and there is a competitive pressure on ATM Suppliers(Indiainfoline ,2010;Yili ,2011) .Although popular articles are reporting about the usefulness and benefits of MVS ATMs for customers, banks, and suppliers, there is dearth of academic literature studying the adoption process of such ATMs in India. Hence, this research aims at obtaining clear understanding of the adoption process by collection opinion from the three stakeholders: customers, suppliers, banks. Previously people were thinking that internet banking will make ATMs irrelevant, but now ATM has become the central point of focus of even common customers apart from educated and tech savvy customers. To provide insight into the further development of this technology and provide more and more services to the customers, lots of studies are required in this field. Biometric ATMs are slowly being adopted in India which helps illiterate rural poor to use ATMs. In the current context; installation cost of biometrics ATMs is quite high. Another target for rural people is the introduction of multilingual ATMs. But multifunctional ATMs are yet to be popular in rural India. Concluding Remarks and Future Research Directions Now-a-days, Banks and suppliers of ATMs are customer driven. Number of studies has been conducted in India and abroad to understand the customer‟s requirements and perception about

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the customer services (Lozano, 1987; Joshua, 2009; Kal, 2010; Chandnanl, 2005; McEwan, 2011; Slawsky, 2011). On the basis of these studies, ATMs have been developed with lot of personalized features. Usage of these ATMs are quite user-friendly and the screens are quite comfortable for both common man and tech savvy people .ICICI, IDBI, HSBC, SBI, PNB, Bank of Baroda, Yes Bank etc have already gone for these types of ATMs in India (financialexpress, 2002; Economicstimes,2007; RBR, 2010; ATM Marketplace, 2007).This helps ATM machines to provide multiple services and also personalized services to the customers (Rajan, 2010; Yili, 2011). This Multivendor software Network had drastically reduced cost and pressure on banks to repetitively contact suppliers of ATMs for patch download and other concerns raised due to customer transactions at the ATMs(Indiainfoline, 2010; Yili, 2011). Banks in India are now competing among themselves to provide better services to the customers on 1-to-1 basis. Leading banks are now competing among themselves to attract customers. Banks are also going for cross selling and up selling opportunities to attract customers as per their personalized ATM transactions. The study has a very strong relevance in academic literature. To provide insight into the further development of this technology and provide more and more services to the customers, lots of studies are required in this field. References •

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