| Abstract: | The main objective of the study was to determine the effects of agency banking on customer
satisfaction in Commercial bank of Ethiopia. Players in the financial institution sector find the
study useful as they can use the findings to strategize on how they can mutually benefit from this
development as opposed to being competitors of the same market segment. The researcher adopted
descriptive research approach and qualitative research method to conduct the research. The study
was carried out in Commercial bank of Ethiopia in Addis Ababa. The population of study consisted
of the agency banking customers of agents offering agency banking in CBE. The study used a
sample of 384 agency bank customers. Primary data was collected for this study by use of
questionnaires. Validation was done through careful examination of the content after a pilot study.
The researcher ensured that all objectives were adequately covered by cross checking the
objectives and corresponding items. Data was analyzed using quantitative methods. The study
used both explanatory, correlation and multiple regression analysis. The study concluded that all
variables except service value i.e. service convenience, service quality and agent quality have
positive effect on customer satisfaction. Furthermore, the correlation result showed that service
quality has a strong and positive correlation with customer satisfaction followed by Convenience.
Service value and Agent quality have a moderate correlation with customer satisfaction. Based on
the above findings, the study therefore recommends there was need for agents to additionally invest
in the service equipment and improve the visual appearance of the points of service and the bank
should improve agents convenience parameters to keep the satisfaction level of customers by
ensuring that customers to get the service near to their residence. Further, the agents should also
improve the speed of service delivery and resolve transaction problems quickly, and without the
need for customers to travel back to the points of service. Further, the agents must continually
improve service delivery by reducing the time customers wait to be served, by improving
professionalism, sense of belongingness, attractiveness and eliminating errors in financial
transactions through adequate controls to keep the satisfaction level. |
