Currently the banking service is well equipped with innovations and as the application of therntechnology in the banking industry is becoming so significant firms have made huge investmentrnon technology based banking and shifting from bricks and mortar banking to such branchlessrnmode of banking . Following such shift customers are also shifting to technology based bankingrnservice due to perceived usefulness, convenient to use , privacy and freedom of mobility. Thus thernobjective of the study was to examine the effect of ATM Service quality dimensions on customerrnsatisfaction and future prospects of ATM in the case of CBE. With a high emphasis, arnquantitative approach based on a convenience sampling technique was used, in which arnstructured survey questionnaire was employed to collect data from the customers. Also with lessrnemphasis a qualitative method which is a structured interview was used to collect data from thernbank. For data analysis a descriptive and inferential statistics were used while to aid computationrnSPSS was applied. The results of the study reveal that the effect of ATM service qualityrndimensions on customer satisfaction and future prospects of ATM is direct and significant. Alsornthe results show that the effect of customer satisfaction on future prospects of ATM is direct andrnsignificant. More than 60% of respondents signed on positively showing that customers haverninterest and found out convenient to use the banking technology instead of having interaction withrnhuman tellers. It also allows customers to transact their banking service quickly, it saves time,rntheir personal information is not misused by their bank ,support service is good. Hence it can bernconcluded that the overall application of CBEATM banking has a bright future in the Ethiopianrnbanking industry and CBE has a chance to mobilize the potential customers and reap more profitsrnthrough provision of quality service using the banking technology as an interface. To improve thernservice delivery and thereby standardize the service offering the bank has to work hard more onrnthe technology based banking such as ATM in such a way that it can bring standardization ofrnofferings and create more conducive technology based banking environment which is convenientrnand accessible with more freedom mobility. Also the bank has to increase features and improvernthe facilities of the technology based banking service in such a way that customers can receive arnwider range of financial services. Specifically providing simple, differentiated customer-focusrnservices based on changing and growing customer behavior and preferences. Studies conductedrnby (Ramsay and Smith 1999; Patricio et al. 2003; Lang and Colgate 2003) cited in AL-Hawarirnetal.(2005) show that customers prefer to use in combination the technology (ATM, internet andrnmobile banking) and yet the focus of this study was only on ATM banking service. So furtherrnresearch may assess the effect of ATM, internet and mobile banking in combination so that morerninsights will be generated. Finally as the study is cross-sectional in its nature and only thernrelationships instead of the causal direction was addressed, future studies can use thernlongitudinal studies to show the confirmation of causality.