Explaining customers’ agency banking services uptake in Tanzania: A perspective of CRDB Bank PLC customers

Abstract

This study investigated factors influencing agency banking service uptake in Tanzania. It specifically sought to determine influence of customer perceived usefulness of agency banking; agency banking technology ease of use; trust of agency banking, and, facilitating conditions on agency banking services uptake. A multiple regression analysis was done to quantitative data collected
from 137 respondents of CRDB Bank customers (a 76.1% response rate of the targeted size) utilizing agency banking service in Dar es Salaam region. It was revealed that, all four hypothesised variables had positive influence on agency banking uptake implying that agency banking uptake is a function of customer perceived usefulness, trust, agency banking technology ease of use, and facilitating conditions. Yet, facilitating conditions influence was revealed insignificant. The variance explained (R2) of prediction was 40%, implying that 60% of it is explained by other factors. The study theorises that close reach of agency banking services, security to the systems and premises satisfactory operations, reference groups of role models, colleges and friends, and good networks are very strong sub-factors that lead to perceived trust, perceived usefulness, agency banking technology ease of use and network coverage facilities that ultimately would lead to agency banking uptake.

Keywords: Agency banking; uptake; trust; ease of use; perceived usefulness; banking services; Tanzania.