The study of difficulties and proposed solutions to increase Young smart farmer loan customer of Bank for Agriculture and Agricultural Cooperatives (BAAC) Thamiram branch

Abstract

This study is problem-based research using mixed methodology aims to analyze difficulties and solutions to increase Young smart farmer loan customer of Bank for Agriculture and Agricultural Cooperatives. The quantitative sample is three hundred ninety people in operating area of Bank for Agriculture and Agricultural Cooperatives (BAAC) Thamiram branch. Data collection is done using questionnaires. Quantitative data analysis is descriptive statistics, frequency, percentages, averages, standard deviations, t-Test and One-way ANOVA.
The qualitative sample is seven Young smart farmer loan customers along with six Bank for Agriculture and Agricultural Cooperatives (BAAC) Thamiram branch executives and officers. Data collection is done using semi-structured in-depth interviews. Qualitative data analysis is done by coding and content analysis. The cause of problem is identified using Fish bone diagram. The solution is investigated using SWOT Analysis and TOWS Matrix tools. The result indicates that the service quality in marketing mix factor play an important role in loan decision due to different service capability of each employee. The absent of branch personnel also affect service counter performance greatly thus lower direct contact and communication performance. In term of loan inquiry, customer misunderstand the condition that only farmer can get a loan. In fact, an agricultural-related occupation can do so. The proposed solution is aggressive public relation strategy in both offline and online channel to identify and penetrate new generation customers. The use of LINE application and government cooperation is also suggested.