Effect of agency banking on performance of selected banks in Kenya
Loading...
Date
2014-07-16
Authors
Tom, Joshua Akolo
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The growing popularity of agency banking is directly proportionate to the perceived
benefits, however, firms entering these agreements must also be prepared for challenges
they might encounter such as instability, poor performance, and may be dissolved .Dyer
et a (2001) estimate that nearly half of all alliances fail. Hence the main objective of the
study was to establish the effect of agency banking on performance of selected local
banks in Kenya. The study focused on Post bank, Cooperative Bank, Kenya Commercial
bank, Consolidated Bank and their selected agents. The research adopted a descriptive
survey approach focusing on the commercial banks in Kenya that are currently operating
agency banking model. The population of the study consisted of four (4) banks
(Principals), with a target respondent of eight (8) staff members and twenty (48) agents,
consisting of two per principal in six major cities and municipalities (Nairobi, Mombasa,
Nakuru, Kisumu, Kakamega and Eldoret), that comprised the sample frame. Data was
collected by use of questionnaire administered through 'drop and pick' technique by the
researcher. Quantitative data was analyzed using descriptive statistics and correlation and
regression statistical models, while descriptive data was analyzed using content analysis.
Analyzed data is presented using tables and graphs. The study found out that there is a
relationship between competition in the market, agents' compliance with legislation,
organization culture, and resource base, access to technology and management skills and
bank performance in Kenya. This study recommended that to enhance trust with the
agents, banks need to ensure that agents and their staff sign secrecy documents to
maintain confidentiality of all customer information and any other bank business
information. This will also ensure that banks regard agents as business partners and not
merely their employees.
Description
Department of Business Administration, 77p. 2013