ASSESSMENT OF DEPOSIT MOBILIZATION PRACTICE: THE CASE OF BANK OF ABYSSINIA S.C

Abstract

This study intends to assess the deposit mobilization practice of Bank of Abyssinia. Descriptive method particularly survey design approach was adopted for the study. Those having four years and above experience city and outline branches and head office employee and customers were selected for data collection. The research has used 100 and 60 questionnaire for employees and customers of BOA and structured interview discussion for the management of Bank of Abyssinia Share Company the sampling size of the study is 424 clerical staffs of BOA and Sampling method of the primary data is stratified random sampling, and reviewed five year annual report of Bank of Abyssinia S.c. The study identifies that BOA is registering a continuous deposit growth for the last few years. From three major types of deposit saving deposit accounts more than half of BOA's total deposit. The findings of the study show that BOA is operating in a dynamic and highly competitive environment, doesn’t offer different products to its customers, the bank tries to reactivate inactive accounts, aggressively promoting its service, sales officers are effective by increasing account number, government law and regulation is the challenge to mobilize deposit. Finally bank of Abyssinia were recommended to extend evening hours and services on weekends to provide excellent customer service, evaluate the existing products and develop new product types which customized to the needs of different target groups, to make efforts and awareness creation campaigns to have well informed society, increase its branch number, to arrange and apply incentive program for new depositors.