News

Survey says ATMs important to users, non-users in India

February 17, 2004

MUMBAI, India - Residents of India consider ATMs one of the most important aspects of selecting a bank.

According to a report in the Business Standard, citing a survey conducted by International Data Corporation (IDC) for NCR Corporation, survey respondents rated the importance of ATMs while deciding to open an account between 4.4 to 4.8 (on a scale of 1 to 5).

The survey was conducted across 12 regions of India and divided into three age groups of ATM users and non-users. It was commissioned to understand the behavior patterns of ATM card users across the country.

Even among non-users or infrequent users, about 44 percent considered it a very important service, while about 29 percent considered it somewhat important.

ATMs are typically used for cash withdrawals, mini statements and balance inquiries, according to the survey. About 88.5 percent use ATMs for withdrawals versus 42 percent using the branch.

The survey also revealed that frequent users as well as non-users considered the number of ATMs inadequate. Nearly 12 percent cited it as an important problem, and about 18 percent suggested more ATMs.

Some 18 percent of non-users said more ATMs would be an important motivator for usage.

Non-users did have misconceptions about ATM usage. Nearly 13 percent believed that they needed to maintain high balances in their accounts to be able to use ATMs. Some 3.5 per cent believed that they needed to go through tedious documentation to start using an ATM.