Factors Affecting the Deposit Growth of OromiaInternational Bank S.C

Abstract

This study aimed to identify the factors that determine deposit growth of private commercial banks in Ethiopia: in the case of OIB S.C. Accordingly the study performed based on both qualitative research approach on the determinants of private commercial banks deposit growth in the case of OIB S.C. The qualitative study approach used deposit growth as dependent variables and independent variables such as service quality, technology implementation, deposit customers, deposit interest rate, and marketing strategy of the bank. Total of 364 questionnaires were distributed through e-mail to the selected employees of OIB and a total of 272 able to collect. The study was analyzed using descriptive statistics specifically using frequency distribution and percentage of the respondents. These variables are also important determinants of deposit growth that a bank needs to focus on their implementation for the customers. The study recommends the bank to tap into the unbanked markets through massive branch expansion to economically and socially feasible areas, revision of lending and saving interest rate in parallel to the banking industries as well as based on the account types of customers, opening the branch location at convenient places for customers, improving the technological application and delivery to customers on time on ATM, Internet, mobile and agent banking, using modern equipment like computers, photocopy, printing that minimize cost and take short time in serving customers, continuous provision of training for new and existing staffs to improve their job implementation.