Predicting customers' behavioral intentions toward ATM services

Purpose – The present study aims at developing an integrated model designed to predict and explain the various factors that influence customers' behavioral intentions to use or not to use one particular SST, i.e. ATM services. Design/methodology/approach – A list of households in a particular Indian city was obtained from the municipal corporation. 268 respondents were contacted using systematic sampling technique. Structural equation modeling was used to demonstrate the stability of the proposed model and to test the hypotheses. Findings – The study finds that bank customers are less innovative and less optimistic to try out new technologies. Usefulness of the technology helps in developing positive attitude towards the technology. Customers' intentions to use technology are significantly affected by their attitude towards the technology. Research limitations/implications – The present study confines to only two banks and that too limited to the branches of these banks operating in one city only. Practical implications – Despite extensive use of ATMs, the absence of direct interaction with bank staff has increased customers' apprehensions about the perceived risk. To reduce the customers concern about perceived risk because of security and privacy concerns, the bank should improve the quality of interaction with the customers to alleviate these apprehensions. Originality/value – Lack of personal interaction generates doubts and queries in the minds of the people, especially those unaware or less aware of these technology-based services. Such a situation is quite prevalent in the developing nations (like India), where still a large number of people are apprehensive about using the latest technologies.