• Peter Ifeanyichukwu Ali Department of Financial Management Technology Federal University of Technology Owerri, Imo State, Nigeria
  • Emenike Kalu O. Department of Banking and Finance Rhema University Aba, Abia State, Nigeria



The increasing adoption of automated teller machine (ATM) as a major payment system has redefined banking services both in Nigeria and internationally. This paper evaluates the impact ATM on the banking service delivery in Nigeria using descriptive and regression analyses on the value of ATM transactions and customer deposit series for the sample period ranging from January 2009 to December 2013. The results of descriptive statistics show that private sector saving deposits and private sector demand deposit series are normally distributed but the private sector time deposits and the value of ATM transaction are not normally distributed. The results of the ADF unit root tests show that the levels of the variables contain unit roots whereas their first differences do not contain unit roots. The regression results indicate that ATM transactions positively and significantly impacts private sector demand deposits in Nigeria but not private sector savings deposits and private sector time deposits. It is recommended that the monetary authorities and commercial bank enlighten the depositors on the usage of ATM machine through mass media such as, television, bill board and radio as well as paste directive posters at every ATM centres across the country.


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