Significance Of Automatic Teller Machine To Enhancing Customer Relations In The Nigerian Banking Industry
[A CASE STUDY OF DIAMOND BANK PLC ILORIN]

CHAPTER TWO
LITERATURE REVIEW
2.1    THE MEANING OF AUTOMATIC TELLER MACHING
    According to DE LA RUE (1967) The inventor of A.T.M at the north London of Barclay bank ‘‘A.T.M is an acronym for automated teller machine or automatic teller machine (also called cash machine, A.T.M scrip to cash machine, or quiche) is an electronic computerized communication device that allows a bank’s customer to directly use a secure method of communication to access their bank accounts, order to make cash withdrawals and check their accounts balance without the need for human bank teller or cashier”
    Wetzel (1973) an engineer sees A.T.M beyond what the inventor identified, he said an A.T.M is a machine that allows people to deposit cash or cheques. Transfer money between their bank accounts, top up their mobile phones pre-paid account or even by postage stamps. He want further to compliment what DE LA RUE said that, ‘‘A.T.M is an electronic computerized machine that allow bank account order or make cash withdrawal without the presence or the service of the cashier”.
Oyebode (2006) in her book, tittled of professional guide to marketing of financial service, went further to explain the card holder to load money into the card at the issuing bank and cashes the money piecemeal at any location of the machine.
2.2    RATIONAL FOR THE INTRODUCTION OF A.T.M
    George (1997) stresses that, A.T.M was introduced in vacuum but due to the following reasons.
(a)    Desire to Grow
(b)    Competitive Reasons
(c)    Convenience Reason
(d)    Desire to increase sales/profit
(e)    Improvement of the organization’s image
(f)    Optimum use of company’s resources
(a)    Desire to Grow: A company place definite imitation on its growth, if it concentrates only in single service. It is therefore better to have new initiatives in order to further enhance the growth potential of the particular organization.
(b)    Competitive Reason: Competitor is one of the task environments that affect business operation. Therefore, one of the major reasons why ATM was introduced by business organization was to counter or combat or suppress and gain competitive advantage over competitors.
(c)    Conveniency Reason: In order to create an enabling environment for customer of a particular organization, ATM was introduced to reduce the stress and the task of compulsory visitation to the bank’s premises. In fact, it is convenience for people who do travel, because it is possible to make withdrawal where one’s bank has no branches.
(d)    Desire to increase sales, patronage profit without doubt, one of the prominent reasons why ATM was introduce is the desire to increase sales through patronage which will go along way in enhancing the profitability of the organization.
(e)    Improvement of the organization’s image with the introduction of ATM and other related technologies it will go along way in boosting the over all co-operate image of the organization both within the industry and economic as a whole.
(f)    Optimum use of company’s resources: By spreading the cost of a bank’s operation over series of technological advancement such as ATM, it will be possible for such organization to reduce average cost such as cost of employing many personnel’s or cashier.
2.3    uses of ATM in business organization automatic teller machine is useful in business organization, be it financial organization or selling based firm. Among the uses are.
(a)    Transaction purpose
(b)    To attract customers
(a)    Transaction purpose: Automatic teller machine (A.T.M) is used by an organization, majorly for transaction purpose. ATM credit card can be used for shopping at merchant shop or stores, petrol station and restaurants which operate the system of automatic teller terminal in financial industry, ATM is used for transaction as it allows cash and withdrawals to be made by customers conveniently, which may serve as the major basis of gaming more market store.
(b)    To attract customer: companies or business organization make use of ATM to attract customer with the emphasis on some of the benefits they could derive from the A.T.M.