Evaluation of the performance of bancassurance at ABC Capital Bank Uganda

Abstract

The study purposely examined the performance of Bancassurance at ABC Capital Bank and focused on establishing the factors affecting the performance of Bancassurance at ABC Capital Bank, assessing the challenges facing bancassurance performance at ABC Capital Bank, and designing strategies for better performance of bancassurance at ABC Capital Bank. The study was carried out in ABC branches in Kampala district. The study adopted a descriptive research design. The study employed both quantitative and qualitative approaches. An interview guide and questionnaires were the main tools to use in data collection, which combined qualitative and quantitative techniques, respectively. In this study, the population was comprised of staff and managers at ABC Bank. The study found that leadership support and collaboration with insurance partners are significant strengths, with leadership scoring a high mean of 4.83 and collaboration at 4.5, indicating robust commitment and effective partnerships. Staff training and customer awareness are positive, with scores of 3.63 and 3.93, respectively, showing that staff are reasonably well-prepared and customers are sufficiently informed. However, key areas needing improvement include marketing efforts, scoring a low 2.12, and the incentive structure at 2.32, suggesting a need for better communication and motivation strategies. Major challenges include high customer awareness issues (4.31) and perceptions of bancassurance as secondary (4.83), along with inadequate staff training (4.15) and misaligned incentives (3.83). Operational inefficiencies are evident in integration problems (2.51), staff resistance (2.32), technological limitations (3.41), and regulatory complexity (3.35). Strategies for improvement focus on enhancing collaboration (4.92), promoting a culture of excellence (4.85), developing customized products (3.75), upgrading technology (4.23), and ensuring regulatory compliance (4.08). While competitive incentives (3.71) and better customer service (3.37) are important, enhancing training programs (3.42) and targeted marketing efforts receive lower support. Therefore, the study recommends several key actions for improving bancassurance performance at ABC Capital Bank. It suggests that the Marketing Department enhances its strategies by developing targeted campaigns, leveraging data analytics, and utilizing digital channels, with implementation recommended within 3-6 months. Additionally, it advises revising incentive structures to align with bancassurance goals and strengthening interdepartmental collaboration through regular meetings and joint task forces. Promoting a culture of banking excellence and improving staff training are also emphasized, with a 6–12-month timeline for cultural changes and 3-6 months for training improvements. The study contributes to the literature by highlighting strengths, identifying critical weaknesses, and offering actionable recommendations to advance bancassurance practices and inform policy development.