ANALYSIS OF BUSINESS CORRESPONDENT SERVICE ADOPTION AND ITS IMPACT ON SATISFACTION AND RE-USAGE BEHAVIOUR OF CUSTOMERS TOWARDS BANKING SERVICES IN UNDER-SERVED AREAS OF PONDICHERRY

Abstract

In recent years, the banking sector has experienced a significant shift in its approach to providing services, especially in underserved areas. The introduction of Business Correspondent (BC) services has been instrumental in connecting traditional banking with unbanked or underbanked populations. Understanding the factors influencing the adoption of Business Correspondent services and their impact on customer satisfaction is vital for both banks and policymakers.

This study adopts an exploratory and descriptive approach, employing a mixed research methodology that integrates both qualitative and quantitative methods. The research focuses on banking customers in the under-banked areas of Pondicherry, India, specifically those utilizing the services of BCs. The sample, selected through convenience sampling, comprises 150 customers, and primary data is collected using a structured questionnaire. The researcher employs a combination of descriptive and inferential statistical techniques for data analysis.

Based on the findings, the study reveals that "Accessibility & Convenience" stands out as the primary factor among the four influencing the adoption of Business Correspondent Services, playing a pivotal role in predicting customer satisfaction and re-usage behaviour. Notably, customers express lower satisfaction levels with "Agent Relationship & Service Quality" compared to other factors. It is noteworthy that male customers exhibit a higher perception of adoption factors, greater satisfaction, and a more positive inclination toward reusing Business Correspondent services compared to their female counterparts. Additionally, the study establishes a robust connection between adoption factors and customer satisfaction, emphasizing a significant link between customer satisfaction and positive re-usage behaviour within the underserved areas of Pondicherry. This research significantly contributes to our understanding of Business Correspondent Service adoption in under-served areas of Pondicherry and provides actionable insights for financial institutions to refine strategies, enhance service quality, and tailor approaches for diverse customer segments, ultimately advancing financial inclusion initiatives in underprivileged regions.

KEY WORDS: Business Correspondents, Adoption Factors, Satisfaction, Re-usage behaviour, Accessibility & Convenience, Agent Relationship & Service Quality, Affordability of Services.