Agent-based banking model and service satisfaction among small-scale entrepreneurs in Dodoma Urban, Tanzania
Year: 2025
Type: article
Study design: Observational Study
Abstract: Despite the increasing adoption of agent-based banking by commercial banks to minimize operational costs, the perspectives of small-scale entrepreneurs, who mostly depend on this cost-effective model, are often overlooked. This paper empirically examines the interplay between agent-based banking and service satisfaction, drawing on the experience of small-scale entrepreneurs in Tanzania. Underpinned by the Technology Acceptance Model (TAM) and the Service Quality (SERVQUAL) Model as theoretical frameworks, this paper explores how service quality, convenience, and responsiveness of bank agents influence entrepreneurs’ satisfaction. The target population comprised 15,388 residents in Makole (10,571) and Majengo (4,817) wards in Dodoma Urban. Due to the absence of a specific database of agent-banking users, convenience sampling was used to collect data from 330 small-scale entrepreneurs through a cross-sectional survey. Data were analyzed using descriptive statistics and a multiple linear regression model. Findings reveal a significant correlation between agent-based banking and perceived service satisfaction. Specifically, bank agents’ service quality (p < 0.05) accounted for 59% of the variance in satisfaction, followed by convenience (55.4%) and responsiveness (53.7%), both of which were statistically significant (p < 0.05). Descriptive statistics results indicate that over 70% of entrepreneurs reach bank agent outlets within 20 minutes and find their locations convenient. The study concludes that bank agents deliver high-quality services that significantly enhance the satisfaction of small-scale entrepreneurs in simplifying cash flow management and access to credit facilities. The findings underscore the potential of agent-based banking models in fostering inclusive economic growth in developing countries. The findings present actionable insights for commercial bank officials and local government authorities to improve agent-based banking services and enhance financial inclusivity in Tanzania.
Author: Kelvin Luka Nzilano
Institution: Moshi Co-operative University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411115950