Determinants Of Customer’s Saving Growth: The Case Of Cooperative Bank Of Oromia In Ambo Town

Abstract

Savings is one of the most decisive factors for successful economic and personal growth. The aim of this study was to investigate the determinants of customers saving growth and identify factors that influence the saving growth of customers in case of Cooperative bank of Oromia; Ambo town. The researcher was used both the qualitative and quantitative research approaches. For the achievement of the research objective, primary data was collected by distributed questionnaire to 376 samples of customers of cooperative bank of Oromia. Descriptive and inferential analysis was used to achieve the objective of the study. The descriptive analysis result showed that about 44.68% of the customers replied that their saving was not increased and about 55.32% the respondents replied that their saving in Bank was increased. Specifically, averages, standard deviation, percentages, cross tabulations used to obtain important features and assess dependence among variables. To examine the determinants of customers’ saving growth, binary logistic regression and chi-square test analysis were run using SPSS version 20 and produced that 75.9% of total variations on saving growth data was explained due to the repressors. The chi-square test of association revealed that Age of customers, education level of customers, marital status, family size, religion, jobs/occupation, income, consumption, distance to institution, inflation rate, interest rate access to credit, quality service and awareness to society were significantly associated the saving growth of customers. Additionally, the binary logistic regression showed that education level of customers, jobs/occupation, income, distance to institution, inflation rate interest rate access to credit, quality service were positive or negative affecting the saving growth of customers, at 1% and 5% level of significance. Based on the major findings, the researcher recommended that Stakeholders and customers should add values and enhance education, income, interest rate, access to credit and service quality to achieve the growth in saving customer