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

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1    BRIEF HISTORY OF ATM IN DIAMOND BANK
    shepherd – barrow took the concept of ATM to both the U.S and Japan, destined to become the world’s biggest ATM market. At a 1967 conference of 2,000 U.S bankers in Miami, shortly after the first ATM had been installed in England shepherd – barrow was given 12 minutes to talk about the new self – service banking device. At first shepherd – barrow said, it was received as ‘‘a wacky European idea that would n’t sell in America few of the 2,000 delegated took brochures away with them. But soon after he got his first U.S order, from first penny wama bank for six machine to be installed in Philadelphia. Then think began to snow ball. The check token originally used to initiate transaction switched to the card.
Specifically, diamond bank of Nigerian plc introduced it later in Nigeria in 2004 for efficient banking service to customer of the bank.
The challenge for bank becomes to cost effectively manage the proliferation of channel. In this respect the branch, as well as ATMs, have a big role to play in the delivery of service and information to the end customers. And it is recognized that the banks is key for cross – selling financial products and enhancing customer loyalty.
So far, their the story of the ATM in diamond bank plc has been one of three I’s, invention, investment and innovation. The middle ‘I’ is mission – critical – unless the business model of ATM operations procure sufficient profitability for diamond bank and independent deplorers, whether through inter changes fees, surcharging or new killer applications, fund for investing in the continued technological development of the ATM will dwindle and the spirit of invention and innovation on in our industry will fall into decline.
It is the role of ATM to help keep that virtuous cycle going happy suppliers providing ATM technology to happy deplorers who, in turn, provide ‘money around the clock” to happy customers.
Since the invention of ATM in diamond bank of Nigeria plc, the bank has been witnessing the reinvention of its banking system with a modern, multi – channel system ‘one – stop” fell to it.
4.2    THE REASONS FOR INTRODUCING ATM INTO DIAMOND BANK.
    Automatic teller machine was introduce into diamond bank dues to the following reasons:
(i)    convenience reasons
(ii)    improvement of the bank image
(iii)    desire to increase sales / profit
(iv)    competitive reason
(i)    convenience reason: In order to create an enabling environment for customer of a diamond bank, ATM was introduced to reduce the stress and the task of compulsory visitation to the bank’s premises.
(ii)    improvement of the bank image: With the introduction of ATM and other related technologies by diamond bank it will boosting the image of the bank.
(iii)    desire to increase sales / profit: This is another reason why ATM was introduced is the desire to increase sales / profit through patronage which will go a long way in enhancing the profitability of the bank.
(iv)    competitive reason: Competitor is one of the environmental factor that affect business operation. Therefore, this is also is of the reason why ATM was introduced by diamond bank was to counter or suppress and gain competitive advantage over competitor.
4.3    Objectives of introducing ATM into diamond bank’s operation.
    Introducing of automatic teller machine by diamond bank’s plc into it’s operation is not done in vacuum but to achieve a specific objective.
    The followings are some of the objectives of introducing ATM into the diamond bank’s operation.
(a)    To attract more customers.
(b)    To create convenience for its customers.
(c)    To increase its market share
(d)    To combat competitors.
(e)    To project a good image.
(a)    To attract more customers: Among the objectives of introducing ATM by diamond bank is to attract customer which will in turn lead to patronage and in turn lead to high sales volume.
(b)    To create convenience for its customer: With the introducing of automatic teller machine popularly known as an aspect of branchless banking that allows customer to withdraw money at any time and place without compulsory visitation to the bank. Without doubt, convenience of customers will allow efficient patronage.
(c)     To increase its market share: Market share of a company is the percentage of a market that belong to a particular firm. Diamond bank plc introduce ATM to increase have a fair increase in its market share.
(d)    To combat competitors: Competition is one of the task environments that affects business operation. Therefore, diamond bank plc embarked on ATM for the purpose of having an upper arm in the eyes of customers than it competitors.
(e)    To project good image: Organization’s image can be improved by effectively perform an operation diamond bank plc has it as one of the objectives before the introducing of ATM to its operation.