Agency Banking Adoption Trends among Bank Customers in Tanzania: A Continued Perspective

Julius Julius; Gregory Lyimo; Fatma Omary

doi:10.56225/ijfeb.v3i2.328

Authors

Julius Julius Department of Banking and Financial Services, Institute of Finance Management, RQF2+245, Mashariki Ave, Dodoma Campus, Tanzania
Gregory Lyimo Department of Accounting and Finance, Institute of Finance Management, RQF2+245, Mashariki Ave, Dodoma Campus, Tanzania
Fatma Omary Department of Banking and Financial Services, Institute of Finance Management, 5 Shaaban Robert St, Dar es Salaam Campus, Tanzania

DOI:

https://doi.org/10.56225/ijfeb.v3i2.328

Keywords:

Agency banking, Perceived convenience, Perceived trust, Perceived cost, Subjective norms, Satisfaction, Perceived usefulness, Confirmation and continued intention

Abstract

Agency banking has become crucial for expanding financial inclusion by offering banking services to underserved urban and rural areas. This study examines the behavioral factors affecting customers' continued intention to adopt agency banking using the Expectation-Confirmation Model (ECM). Data was gathered through closed-ended questionnaires distributed via Google Forms and drop-off/pick-up methods, resulting in 166 responses analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using SMARTPLS 4.0 software. Findings indicate that customers’ satisfaction, subjective norms, perceived usefulness, and perceived convenience significantly and positively impact the continued intention to adopt agency banking. However, perceived cost and perceived trust were not significant. Additionally, perceived usefulness and confirmation significantly and positively impact customer satisfaction, while confirmation significantly impacts perceived usefulness. Mediation analysis showed that satisfaction and perceived usefulness significantly mediate the relationships examined. To enhance customers' intention to continue using agency banking, policymakers should develop strategies that promote communal culture, positive behavior towards agency banking, increased services, and broader understanding of its benefits. This research offers insights for academics and practitioners on improving adoption strategies and policies to boost financial inclusion.

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