CHALLENGES OF DEPOSIT MOBILIZATION IN BUNNA INTERNATIONAL BANK S.C CASESTUDY IN ADDIS ABABA BRANCHES

Abstract

The focus of this research is assessing challenges of deposit mobilization in Bunna international bank s,c in Addis Ababa Branches. Deposit mobilization is an integral part of banking activity. Mobilization of savings through intensive deposit collection has been regarded as the major task of banking in Ethiopia. This paper was assessed the performance, challenges and activities of deposit mobilization in Bunna International bank s.c. Most of the challenges for deposit mobilization in BIB challenges of political unrest with in the country, challenges of bank management administration, challenges of promotion, challenges of banking ethics, challenges of working hour, challenges on increment of consumption, challenges of employees experience sharing, challenges of attitude and beliefs of customer, challenges of bank service standard and challenges of adapting new technology. The method of the study used descriptive analysis method with probable and none probable sampling techniques. This study data collection depended on city branch managers; employee and shareholder. The findings of the study show that BIB, poor management administration for branch location and luck of product announcement, inaugurating working hours is not enough, low service quality, ATM and POSS machine services charge is higher and not easily adopted by customer, there is no incentive program for new depositor, there is no implementation of interest free banking. Finally BIB were recommended to extend evening hours to provide excellent customer service, evaluate the existing products and develop new product with aggressive promotion for different types of product which customized to the needs of different target groups, to make efforts and awareness creation campaigns to have well informed society, increase its branch number with convenience location to create new technology that is easily adopted by customer with less cost service charge, to arrange and apply incentive program for new depositor and apply interest free banking.