The automated teller machine (ATM) is a machine that acts as a teller in an institution by receiving and issuing money to and from the ATM account holder or user. The growth and evolution of at ATMs was not only due to, but rather as a result of general global concentration in the technological revolution. This came due to challenges of multiple bulk of daily complex information that arise from existing difficulties like; increase in competition, increase in customer’s demand for both services provision as well as efficiency , expansion due to increase in demand and all the likes just to name a few.
The ATM system used by micro financial institutions today is an inherited system from banking system therefore brought in efficiency in different micro financial institutions in terms of speed, data processing and storage. Thus, it brought in enormous improvement in queuing in institutions in use of the ATMs. Despite all the merits of ATMs, customers still bring up complains on the demerits of the system such as; breakdown of ATMs, long queues at the ATM service point, retention of customers cards. In this light, this research entails to find out why all these cries after all the goods incurred in the system. 1.1 Background of the study.
1.1.1 Historical background.
The history of micro financial institutions can be trace as far back as the 1880s when the theorist Lysander Spooner was writing over the benefits of from small credits to entrepreneurs and farmers as a way of getting people out of poverty. Today, the use of the expression ‘’micro financing’’ has its root in the 1970s when organisatons were sarting and shaping the modern industry.At that time,many microfinance ini tiatives introduced many new innovations into the sector.Many entreprises began experimenting with loaning to the under served people. The main reason why micro financing is been traced back to the 1970s is that, the programme could show that people can be relied on to pay their loans and that it’s possible to provide financing services to poor people through market based enterprises without subsidies.