Effects of quality service delivery on agency banking performance

Abstract

The issue of set saving hours is one that consumers of financial services must deal with. Even though Equity Bank has 188 agent shops at Arusha Municipal, there were significant lines in the banking hall. Due to the fact that many clients travel great distances to visit an agent outlet that offers the same services and that agency banking transaction volume has lately decreased, the researcher was compelled to evaluate the impact of high-quality agency service delivery on agency banking performance. Assessing the impact of providing high-quality services on agency banking performance at Equity agency banking in Arusha Municipality was the primary goal of the study. In particular, this study sought to ascertain the degree of customer confidence in agency banking services in equity agency banking outlets, the dependability of agency banking on agency performance in equity agency banking outlets, the impact of agency banking service location on agency performance in equity agency banking outlets, and the convenience of agency banking services on agency performance in equity agency banking outlets. Cross-sectional research approach was adopted in this study. The study employed a sample size of 373 respondents, selected through a combination of convenience and purposive sampling techniques. Purposive sampling was employed to identify the key informant from the Equity Bank Arusha branch, as they possess crucial information regarding the delivery of quality services that impact agency banking performance. With the help of the statistical package for social sciences, data was analyzed using regression analysis and descriptive statistics. High reliance on agency banking increases agency performance, according to the data. The study demonstrated that greater customer confidence in agency banking services leads to improved agency banking performance. It also demonstrated that convenient agency banking services enhance agency banking performance, with strategic agency banking service locations contributing to improved agency banking performance. The study comes to the conclusion that agents have a significant impact on the bank's performance and financial inclusion; as a result, agents should give high-quality services to customers in order to boost the effectiveness of both the bank and agent banking. According to the report, bank management should regularly train agents to better prepare them to offer consumers high-quality services. Additionally, connection between the provision of high-quality services and agency performance to identify any gaps and, it is advised that Tanzanian banks conduct regular audits and studies on the difficulties in order to optimize the procedures and systems and promote efficiency.