The first Automated Teller Machine

Technology has succeeded in making various aspects of life easier for the societies of today (Rust & Oliver, 1994). More importantly, it has become a fundamental element in improving the quality of services in general and E-Banking services in particular (Joseph & Stone, 2003). E-Banking service is said to rely on the exchange of information between customers and providers using technological methods devoid of face-to-face interaction (Darwish & Lakhtaria, 2011).


Historically, the launching of the first Automated Teller Machine (ATM) in Finland marked the start of a new banking channel, which made Finland the leading country in E-Banking, before it became widely used in any other developed and developing countries (H. Sharma, 2011). More recently, E-Banking, or the distribution of financial services via electronic systems, has spread among customers due to rapid improvement in IT and through competition between banks (Mahdi, Rezaul, & Rahman, 2010).

Lustsik (2004) defines E-Banking services as a variety of e-channels for doing banking transactions through Internet, telephone, TV, mobile, and computer. Banking customers’ desires and expectations with regard to service are expanding, as technology advances and improves. These days, the customer wants to operate and do his or her banking transactions at any location without going to the bank, at any time without being limited to the bank’s working hours, and to do all his or her payments (purchasing, bills, stocks) in a fast and cost-effective way. Consequently, financial services quality ought to be characterized by independence, elasticity, freedom, and flexibility, to accommodate these desires (Khalfan & Alshawaf, 2004).