• : Ms Word Format
  • : 75 Pages
  • : ₦3000
  • : 1-5 Chapters
  • Click to DOWNLOAD Materials




This study is an attempt to examine the introduction of Cardless ATM withdrawal on development of banking services. Automated Teller Machine (ATM) transactions are no longer found to be safe, reliable and inevitable these days for fulfilling of financial commitments. As the traditional approach for using ATM mandates involvement of Debit card has be reduced by the introduction of Cardless ATM withdrawal services. The study made use of both primary and secondary data gathered from Eco Bank Nigeria. The study was carried out in Rivers State, Nigeria with 133 questionnaires administered to the bank staff in the state. Of the total questionnaires distributed, 133 questionnaires (representing 100%) were returned. The data collected was analyzed using frequency table and percentages while for, Chisquare was used to test the formulated hypothesis. The results of the study showed that cardless ATM withdrawal has positively affected the development of banks; as it facilitates ease of operations and reduces queue and congestion in the banking hall, among others. But it was discovered that, the awareness of Cardless ATM withdrawal is sluggishly growing among Nigerian bank customers.


                                              CHAPTER ONE


1.1 Background of the Study

Financial institutions are the linchpin of the economy of any country. They occupy central position in the country’s financial system and are essential agents in the development process. By intermediating between the surplus and deficit savings units within an economy, banks mobilize and facilitate efficient allocation of national savings, thereby increasing the quantum of investments and hence national output. In a developing economy such as Nigeria, financial sector development has been accompanied by structural and institutional changes and the sector generally has long been recognized to play a crucial role in the economic development of the nation.

The first automated banking machine in the U.S. was devised by a Dallas engineer and former professional baseball player named Donald Wetzel (Edward E, 2004). Wetzel’s machine used plastic cards like the ones we use today. (Instead of radioactive ink, the cards stored account information in magnetic strips.) In September 1969, a Chemical Bank branch on Long Island installed the first of Wetzel’s machines.

By 1970, dozens of U.S. banks had jumped on the ATM bandwagon (James J Mc Andrews, 2010). To introduce this new machine to consumers, banks used all kinds of advertising tricks. Every 25 minutes during the movies, commercials for the bank touted the advantages of its new cash-dispensing machine. However, it took a corporate gamble and a blizzard for the ATM to win the confidence of American consumers. In 1977, the chairman of Citibank took a huge risk, spending more than $100 million to install ATMs all over New York City (James J Mc Andrews, 1999). That investment paid off the following January when a huge blizzard hit New York, dumping 17 inches of snow on the city. Banks were closed for days; meanwhile, ATM use increased by 20 percent. Within days, Citibank had launched its by-now-familiar “The Citi Never Sleeps” ad campaign. Posters and billboards showed customers trudging through snow to get to Citibank ATMs. After that, almost every one of the country’s banks followed Citi’s lead. The era of the ATM was underway.

The Automated Teller Machine (ATM) was introduced into Nigeria market in 1989, as a matter of fact the very first Automated Teller Machine (ATM) in Nigeria was first installed by National Cash Registers (NCR) for the defunct Society General Bank in 1987. The card-less ATM withdrawal in Nigeria, was introduced in April 2014, has been adopted by some Nigerian banks; but this service is yet to get the attention of many bank customers.

In recent decades, investment in IT by commercial banks has served to streamline operations, improve competitiveness, and increase the variety and quality of services provided. According to (Yasuharu, 2003), implementation of information technology and communication networking has brought revolution in the functioning of the banks and the financial institutions. It is argued that dramatic structural changes are in store for financial services industry as a result of the Internet revolution; others see a continuation of trends already under way. Arguably, the most revolutionary electronic innovation in this country and the world over has been the Automated Teller Machine (ATM) and the introduction of cardless ATM withdrawal policy. Most banks currently operate with the cardless ATM withdrawal services in Nigeria today. For instance the Xpress Cash postulated by Eco Bank Nigeria is a big relief to the stress of going about with an ATM card.

E-bank is the electronic bank that provides the financial service for the individual client by means of Internet. Cashless system of payment is defined as a society where transactions is functioning, and operated or performed without using coins or banknotes for money transactions but instead using credit cards or electronic transfer of funds (Reverso Dictionary 2nd Edition, 2009).

The payments system plays a very crucial role in any economy, being the channel through which financial resources flow from one segment of the economy to the other. Therefore, it represents the major foundation of the modern market economy. Essentially, there are three pivotal roles for the payments system namely; the Monetary Policy role, the financial stability role and the overall economic role (CBN, 2011).

Electronic payments as argued by scholars have a significant number of economic benefits apart from their convenience and safety. These benefits when maximized can go a long way in contributing immensely to economic development of a nation. Automated electronic payments help deepen bank deposits thereby increasing funds available for commercial loans – a driver of all of overall economic activity.

(Jordan and Katz, 1999) stated that the introduction of the ATM has made the distribution of banks services more efficient. ATMs have been able to entrench the “one-branch” philosophy in this country by being networked, so people do not necessarily have to go to their branch to do some banking. Before ATMs, withdrawals, inquiries, internal funds transfers, mini statement inquiry, among others, all required the face-to-face interaction between the consumer and the bank teller. Networking ATM’s has therefore increased banking services to customers.


1.2 Statement of the Problem

The inception of Automated Teller machines (ATM) has been generating a lot of heat, as customers face a splurge of frustration in using it; either the machines will not dispense cash, or debit transactions when cash is not dispensed or cards get stuck in them. Dapo [4] indicate that the proliferation of the machines is giving more concern. As with every other technological breakthrough the ATMs have generated astronomical challenges and problems for the beneficiaries of financial services in Nigeria. Most users of ATM have encountered the problem of Scam. Apart from epileptic services rendered by the machines, faceless crooks steal from the accounts of hundreds of bank customers through the ATM technology. The fraudsters perpetrate this financial crime by stealing the personal identification number, PIN, a special secret code that grants access to the usage of the cards, and consequently, getting hold of the funds of the susceptible ATM users. This led to the study on the introduction of cardless ATM withdrawal on the development of banking services in Nigeria.


1.3 Objectives of the Study

The primary aim of this study is to examine the introduction of Cardless ATM withdrawal on the development of banking services. The specific objectives are:

  1. To examine the level of acceptability of Cardless ATM withdrawal among customers in Eco Bank.
  2. To ascertain the impact of Cardless ATM withdrawals on the development of financial institutions in Nigeria.
  • To investigate the profitability level of Cardless ATM withdrawal services to banking industry with respect to Eco Bank Nigeria.
  1. To proffer solutions to the challenges associated with ATM and Cradless ATM withdrawals in Nigerian Banking sector.

1.4 Research Questions

The following research question was formulated by the researcher to guide the study:

  1. Is there availability of Cardless ATM withdrawal services in Eco Bank Nigeria?
  2. Is the introduction of Cardless ATM withdrawal services widely accepted by Nigerians?
  3. Does the introduction Cardless ATM withdrawal services reduce the high level of ATM fraudulent activities in Nigeria?
  4. What is the profitability level of Cardless ATM withdrawal services to banking industry with respect to Eco Bank Nigeria?
  5. What impact has the Cardless ATM withdrawals introduction brought on the development of financial institutions in Nigeria?

1.5 Research Hypothesis

The following research hypothesis were formulated to be tested at 0.05 level of significance:

H0: there is no Cardless ATM withdrawal services in Eco Bank Nigeria.

H1: there is Cardless ATM withdrawal services in Eco Bank Nigeria.

H0: the introduction of Cardless ATM withdrawal is not widely accepted by Nigerians.

H2: the introduction of Cardless ATM withdrawal is widely accepted by Nigerians.

1.6 Significance of the Study

It is perceived that at the completion of the study, the findings will be of great importance to the banking sector who are in charge of ATM withdrawal services, the study will also be of great importance to the customers of the banks who are the direct benefactor of these Cardless ATM withdrawal services and to understand the intricacy of the new technology. The study will also be of great importance to researchers who intend to carry out investigation on similar topic as the study will serve as a guide to them. Finally the study will be of great importance to students, lecturers and academia as it will add to the pool of knowledge in recent technological development.

  • Scope and Limitation of the Study

The scope of the study covers problem and prospects of ATMs crime and fraudulent activities in banks in Port Harcourt metropolis. However, the researcher encounters some constrain in the cause of the research which limited the scope of the research. Some of the limitations are:

This research has some constrain to its scope and coverage which are:

Availability of Research Material: The research material available to the researcher is insufficient, thereby limiting the study

Time: The time frame allocated to the study does not enhance wider coverage as the researcher have to combine other academic activities and examinations with the study.

Organizational privacy: Limited Access to the visited eco bank centers makes it difficult to get all the necessary and required information concerning the activities

1.7 Definition of Terms


 A bank is a financial institution that accepts deposits from the public and creates creditLending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities.


An automated teller machine, also known as an automatic teller machine (ATM, AmericanBritishAustralianMalaysianSouth AfricanSingaporeanIndianMaldivianHibernoPhilippine and Sri Lankan English), automated banking machine (ABM, Canadian English), cash machine (British English), cash point, cash line, mini bank, or bankomat is an electronic telecommunications device that enables the customers of a financial institution to perform financial transactions, particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.

Cardless ATM Withdrawal

Cardless Cash is a feature of online Mobile Banking that allows you to withdraw cash from your Bank or any ATMs without a card or get cash to others by sending them a cash code to use. To use Cardless Cash you need to: Have an eligible transaction account with a linked debit card or credit card.


This research work is organized in five chapters, for easy understanding, as follows: Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study



Aginam, E. (2008). “ATM Network Failure Among Banks Remains a Challenge”. Vanguard Newspaper Online- Available at:

ATM Express (2005) “Automated Teller Machines from ATM express; Some of the benefits of working with ATM express” Online Available

ATM Global (2008) “Benefits of ATM; ATM Beginners Book” Online Available at:

Bellis M. (2007) “Automatic Teller Machine; The ATM machine of Luther George Simijian”. Online

Crosby C. and Killifer V. (2007): Beyond the ATM, ATM Marketplace,NetWorld Alliance, (Online) Available at:

Eshekels (2006) “Automated Teller Machine (ATM) User perception”. A mini survey report. eshekels Limited; October, 2006.

Handy C. (1994) The Empty Raincoat: Making Sense of the Future. Hutchison, London.



Leave a Reply