AUTOMATED TELLER MACHINE (ATM) DURABILITY ANALYSIS USING SURVIVAL ANALYSIS (EVIDENCE BASE IN INDONESIA)

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Abstract

One way to increase customer trust, which is also one of the bank's competitive advantages, is the quality of Automated Teller Machine (ATM) services. ATM also play an important role in bank’s performance because ATM have a positive impact on bank’s performance, so that ATM maintenance is important for bank. Proactive maintenance of ATM before failure occurs will also have impact on improving ATM service quality. Therefore, it is important for banks to be able to know the estimation of when failure occurs. This study aims to analyze the time-to-event of ATM and the determining characteristics that can affect ATM durability using survival analysis approach. The methods used are Nonparametric Survival Analysis Model, Kaplan Meier, and Nonparametric Survival Analysis Model, Cox Proportional Hazard (Cox PH) on 11,043 ATM data for 2019-2023 at one of the largest banks in Indonesia. The results of the Kaplan-Mayer analysis, there is no significant difference in survival probability ATM between groups on variable location, brand, and operation management. From Cox PH analysis, it was found that the influencing and significant factors are type, duration of machine storage after purchase before activation, brand, and frequency of ATM transactions. While the frequency of Corrective Maintenance (CM) activities has an effect but not significant on ATM durability. This ATM durability analysis can be used as a basis for decisions about the characteristics of ATM that are implemented, so that banks can improve the quality of ATM services and maintain their competitive advantage.
Original languageEnglish
JournalMATHUnesa: Jurnal Ilmiah Matematika
Volume12
Issue number3
Publication statusPublished - 2 Jul 2024

Keywords

  • Automated Teller Machine (ATM)
  • Survival Analysis
  • Cox Proportional Hazard
  • Extended Cox
  • Time-To-Event

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