Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between automated teller machine (ATM) usage and profitability of deposit money banks has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Commercial Banks in Nigeria where operating conditions differ markedly from more developed markets.

Selected Commercial Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on automated teller machine (ATM) usage, there remains limited consensus on the precise nature of its relationship with profitability of deposit money banks, particularly within Selected Commercial Banks in Nigeria. Many organizations continue to make decisions about automated teller machine (ATM) usage without a clear, evidence-based understanding of how those decisions ultimately affect profitability of deposit money banks. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Automated Teller Machine (ATM) Usage on profitability of deposit money banks in Selected Commercial Banks in Nigeria.
2. To assess the extent to which automated teller machine (ATM) usage influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with automated teller machine (ATM) usage in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing automated teller machine (ATM) usage in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of automated teller machine (ATM) usage on profitability of deposit money banks in Selected Commercial Banks in Nigeria?
2. To what extent does automated teller machine (ATM) usage influence profitability of deposit money banks within the study area?
3. What challenges are associated with automated teller machine (ATM) usage in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize automated teller machine (ATM) usage in order to improve profitability of deposit money banks?

1.5 Significance of the Study

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within Selected Commercial Banks in Nigeria seeking to understand how automated teller machine (ATM) usage translates into measurable outcomes around profitability of deposit money banks. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this MSc study confines itself to Selected Commercial Banks in Nigeria, focusing specifically on how automated teller machine (ATM) usage relates to profitability of deposit money banks within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.