A framework for evaluating the performance of automated teller machine in banking industries: A queuing model-cum-TOPSIS approach

The improvement in the provision of banking services to customers enhances bank’s performance (profitability and productivity) and the amounts of dividend declared to shareholders as well as bank’s competitiveness. One means of fast tracking the service time for bank customers is through the use of self-servicing machines, such as automated teller machine (ATM). Total service cost, expected waiting time in queue, ATM utilization and percentage of customer loss are some of the performance indices that are used to evaluate the service rendered by a bank’s ATM. This study proposes a framework for evaluating the performance of ATM by integrating queuing model and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology. Applicability of the framework was tested using practical data obtained from four banks in Nigeria. It was observed that the average ATM usage in the study area was less than 50%. The TOPSIS results identified Bank A as the best ranked bank. In addition, the results obtained revealed that banks with two ATM were ranked higher than banks with more than two ATM