Service Quality and Customer Satisfaction in Agency Banking: A Mixed-Methods Study from Kafue District, Zambia

Wesley Chimwemwe Simukoko and Daphne Munsaka Phiri
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Wesley Chimwemwe Simukoko: Graduate School of Business, University of Zambia
Daphne Munsaka Phiri: University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 2

Abstract: Agency banking has become a key mechanism for advancing financial inclusion in Zambia, particularly in peri-urban regions with limited access to traditional banking infrastructure. This study examined the effect of service quality on customer satisfaction within the agency banking model in Kafue District, Zambia. Anchored in the SERVQUAL framework, the research adopted a mixed-methods sequential explanatory design. Quantitative data were collected through structured questionnaires administered to 400 customers across three banks (Zanaco, FNB, and Indo Zambia Bank), achieving a 93% response rate (n=372), and analyzed using descriptive statistics and multiple regression. This was complemented by qualitative data from 15 key informant interviews and field observations, analyzed thematically. Findings revealed that Assurance (Mean=3.67) and Empathy (Mean=3.62) were perceived as strengths, reflecting trust and personalized service, while Reliability (Mean=3.30) and Responsiveness (Mean=3.34) were identified as weaknesses, particularly regarding system reliability (Mean=2.88) and waiting times (Mean=2.95). Overall customer satisfaction was moderate (Mean=3.58). Regression results indicated that the SERVQUAL dimensions collectively explained 55.2% of the variance in satisfaction (R²=0.552, p

Keywords: Service quality; Customer satisfaction; Agency banking; SERVQUAL; Financial Inclusion; Kafue District; Zambia; mixed-methods (search for similar items in EconPapers)
JEL-codes: D12 G21 O16 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-68

DOI: 10.59413/ajocs/v7.i2.49

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