The role of rural bank service delivery in strengthening local public administration on community development
Abstract
This study examined the role of rural bank service delivery in strengthening local public administration toward community development in Laguna during the Academic Year 2025-2026 including 372 clients. Specifically, it investigates how key dimensions of financial service delivery: digital platforms, accessibility and affordability of services, innovations in customer service and financial products, support for small and medium enterprises (SMEs), and integration with local government units (LGUs), contribute to the maximization of public value in terms of service efficiency, economic empowerment, support for local development goals, and citizen trust and participation. The study employed a quantitative-descriptive research design using a self-constructed survey questionnaire administered to selected respondents. Data were analyzed using descriptive statistics such as weighted mean and standard deviation to determine the level of financial service delivery and public value, while Pearson correlation was utilized to examine relationships between variables. Furthermore, multiple regression analysis and ANOVA were applied to determine the predictive influence of financial service delivery dimensions on public value maximization. Findings reveal that rural bank service delivery is perceived to be highly effective across all dimensions, with digital platforms and accessibility receiving particularly strong evaluations. Public value indicators were also rated highly, especially in terms of economic empowerment and citizen trust. Correlation results indicate significant positive relationships between all dimensions of financial service delivery and public value, while regression analysis confirms that these variables collectively and significantly predict community development outcomes. Notably, support for SMEs and integration with LGUs emerged as strong contributors to public value maximization. The study concluded that rural banks play a critical role in strengthening local public administration by delivering inclusive, innovative, and collaborative financial services. It recommends enhancing digital innovations, expanding SME support, and strengthening partnerships with LGUs to further promote sustainable and inclusive community development.