Browsing by Author "Dimbia, Anyango Agnes"

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    Agency banking and financial inclusion of commercial banks in Siaya County, Kenya
    (Kenyatta University, 2024-04) Dimbia, Anyango Agnes
    In the contemporary business environment, the employment of agency banking as an alternate channel for the provision of banking services has proven an effective way of deepening banks’ operational reach. As a result, numerous commercial banks have adopted the agency banking model as an avenue for enhancing financial services access, especially to individuals in remote rural regions. In the Siaya County context, there are 370 banks’ agents. However, there exist no studies dedicated to the examination of these agency banking models’ impact on financial inclusion. The study established that only three commercial banks operating in Siaya County employ agency banking model. Besides, there were inadequate studies conducted on the impact of agency banking on the financial inclusion of commercial banks in Siaya County.This study aimed to establish the impact of agency banking on the financial inclusion of commercial banks in Siaya County, focusing on all the banks currently employing agency banking in the county, i.e., KCB, Equity and Cooperative Bank. For the attainment of this goal, the study was guided by these specific objectives: to analyze the impact of the cost of agency banking on the financial inclusion of commercial banks in Siaya County; to analyze the impact of timesaving of agency banking on the financial inclusion of commercial banks in Siaya County; to assess the impact of serving hours of agency banking on the financial inclusion of commercial banks in Siaya County; to analyze the impact of the convenience of agency banking on the financial inclusion of commercial banks in Siaya County. In terms of technique, the research issue was addressed by using the explanatory research design. Additionally, a sample of the Siaya County agents of regulated commercial banks was included in the study's target population. The target population for the research was chosen by the proportional random sampling technique. Seventy-four of the 370 agents in the population were chosen for the research. Data collection was done using structured questionaires that were given to participants.Both descriptive and inferential statistics were used with assistance of SPSS software tool. Descriptive techniques that include standard deviation and mean were used . Pearson correlation and multi linear regression were used for inferential techniques. Auto-correlation, multicollinearity, normality and homoscedasticity were tested before using linear regression models. findings were presented using percentages, tables , graphs and charts. The research found a strong correlation between financial inclusion and agent banking. According to the findings, the expense of agency banking has a major detrimental effect on Siaya County's commercial banks' ability to provide financial services. The research also discovered that agency baking's service hours, agency banking's ease, and Siaya County's financial inclusion of commercial banks all had a major favourable influence. In order to guarantee that agency banking services are adopted and utilised, the research advised banks to make these services more widely known and provide them at a discounted rate. Regular reviews of the bank management's agency policy are necessary to increase the number of agents and improve financial inclusion. The report also suggests that agency operators make the most of their serving hours, since this would boost financial inclusion by allowing them to serve a larger number of clients and earn more money in the process