Challenges Facing Customers in Using NMB Agency Banking Services in Dodoma City, Tanzania.

Abstract

Despite the impressive trend, the issue which arises is whether agency banking has succeeded in achieving the expectations of commercial banks. Therefore, there is a need for agency banking services to be evaluated in the light of their contribution to customer transactions in commercial banks in Tanzania. The study determines the challenges facing customers in using NMB agency banking in Dodoma city. A cross-sectional research design was used to collect data from 87 NMB agencies by using a questionnaire and about 20 customers were involved as the key informants through interviews. The findings revealed the following challenges encountered by customers while using NMB agency banking; network problem, accessibility challenges, security challenges, transaction costs and technical associated challenges. The study concluded that there are some challenges which need to be solved in order to attain customer transactions. It recommended that agency banking should have more money so that those who want to withdraw more should not be forced to go to physical banks in order to reduce the challenge of the accessibility of NMB agency banking services.