Abstract:
The objective of the thesis is assessing and identifying the factors influencing the deposit mobilization
at Sandafa Branch, Oromia National Regional State. The study used explanatory research design. The
response variable is deposit mobilization while the predictor variables are Service Quality, Interest
rate, Branch expansion, Technology, Disposable income, and awareness. First, developed a likert
scale questionnaire and then changed the variables into quantitative via the factor analysis. Using the
sample size determination 395 respondents were taken into account. The descriptive statistics like
graphs, mean, standard deviation and finally the regression model has been used. The entire dataset
was analysed using the SPSS software. The result shows that service quality is the potential predictor
variables influencing the deposit mobilization based on the mean. The result of the correlation
coefficient shows that a relationship between dependent variable (deposit), the other six independent
variables and demographic variables. As per the test result all explanatory variables have positive
correlation with explained variable or Deposit mobilization. The result of the study showed that
existence of the difference between several predictor variables while the joint impact of all the
predictor variables are influencing the response variable by 64.4%. Accordingly, the F result in the
study model is 65.977. It also shows that the significance value is 0.000, which is p < 0.05; it means
that there is a significant variation between independent variables such as service quality, branch
expansion, interest rate, technology, disposable income, and awareness when compared with their
contribution to dependent variables. The test statistic reveals that the null hypothesis that all of the
coefficients are jointly zero and should be rejected. Thus, we can conclude that service quality,
proximity to customers, interest rate comparable with inflation rate, provision of appropriate
technology, economic growth, and awareness creation have variable relationship or variable rates of
contribution to customer attraction and deposit mobilization. Finally, it is recommended that the bank
has to pay utmost attention to service quality in order to attain higher deposit mobilization
performance .
