Agent banking and customer satisfaction in a major bank in Kampala: a case of Centenary Bank

Abstract

The study examined agent banking and customer satisfaction at Centenary Bank in Kampala, Uganda. The main objective was to assess the influence of system ease of use, system reliability, and transaction processing speed on customer satisfaction in agent banking services. The study was guided by the increasing adoption of agent banking as a financial inclusion strategy aimed at improving accessibility, efficiency, and convenience in banking services. A descriptive and correlational research design was adopted, using quantitative data collected from a sample of 210 respondents comprising agent banking users and agents. Data was analyzed using descriptive statistics, correlation analysis, and multiple regression analysis to determine relationships between variables and the extent to which the independent variables predicted customer satisfaction. The findings revealed that respondents generally agreed that the system was moderately easy to use (overall mean = 3.75, SD = 0.903), relatively reliable (mean = 3.91, SD = 0.764), and efficient in transaction processing speed (mean = 3.91, SD = 0.767). Customer satisfaction was also found to be high (mean = 3.918, SD = 0.753). Correlation results showed that system ease of use (r = 0.764), transaction processing speed (r = 0.735), and system reliability (r = 0.702) all had strong and significant positive relationships with customer satisfaction at the 0.01 level. Regression analysis further indicated that the predictors jointly explained 47.4% (R² = 0.474) of the variation in customer satisfaction, with transaction processing speed emerging as the strongest predictor (β = 0.502, p < 0.001). The study concluded that system usability, reliability, and transaction speed significantly influence customer satisfaction in agent banking services. It recommended that Centenary Bank should improve system usability, strengthen system reliability, and enhance transaction processing speed to further improve customer satisfaction and service delivery efficiency.