Factors influencing customers’ agency banking services uptake in Tanzania: a case of CRDB Bank PLC

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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
Factors influencing customers’ agency banking services uptake in Tanzania: a case of CRDB Bank PLC Happy Hudson Master of Business Administration University of Dar es Salaam, Business School, 2020 Commercial banks in Tanzania have come up with more customer centric models of delivering financial service. CRDB Bank PLC as a commercial bank embarked on an important reform to expand financial services to millions of low-income customers by enabling third party retail agent as a low-cost financial service alternative to branches. The Agency banking was thought to be of importance to decongest banking halls, but limited numbers of customers are utilizing agency banking service, leaving many customers served by bank branches. Therefore, this study investigated factors influencing Agency banking service uptake in Tanzania. The study was done in Dar es Salam due to 35 percent of all agency banks located in the region while the region that follows has 7 percent coverage. The study used primary data collected from customers of Agency banking and service providers chosen purposively and conveniently. A sample of 137 respondents (76.1% response rate) out of 180 respondents targeted for the study. It was revealed that all independent variable had positive influence of agency banking uptake, besides, with exception to facilitating conditions, perceived usefulness, perceived trust and social influence significantly influenced agency banking uptake by customers. It implies that for agency banking to be widely used, customers must trust the service as well as see it useful and persuasive through other people. However, despite exception on facilitation conditions, literature review supported its inclusion when enticing customers to increase usage of agency banking. Furthermore, the study revealed that cost-saving and times saving is crucial to customers of Agency banking unlike financial transaction provided by commercial banks. Thus, it is recommended that Tanzania Communication Regulatory Authority (TCRA) and other policymaker should play their roles to ensure service providers continue to service customers based on instituted laws, regulations and principles. Also, CRDB should enact policy changes and upgrade financial and staff investments to ensure customers find agency banking trustworthy, useful and popular through social influences, while maintaining a stable and reliable infrastructure.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG1616.C87T34H828)
Keywords
Banks and Banking, Customer Services, CRDB Bank PLC, Tanzania
Citation
Hudson, Happy (2020) Factors influencing customers’ agency banking services uptake in Tanzania: a case of CRDB Bank PLC, Master dissertation, University of Dar es Salaam