Challenges associated with Adoption of Agency Banking and Bank Performance: A Case of Selected Commercial Banks in Kenya
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Date
2017
Authors
Mungai, Edwin Henry Mutura
Omagwa, Job
Journal Title
Journal ISSN
Volume Title
Publisher
International Organization of Scientific Research
Abstract
The study sought to determine the effect of challenges associated with adoption of agency banking on
bank performance of four selected commercial banks in Kenya. Empirical evidence indicates that the effects of
challenges associated with adoption of agency banking on bank performance in Kenya are positive and that
there is relationship between accessibility of banking services, low cost of service and customer transactions as
a result of agency banking. The study employed purposive sampling to obtain a sample of 44 respondents from
four banks. Data was collected using questionnaires. The findings of the study indicate that administrative
challenges do not significantly affect bank performance whereas reliability and operational challenges were
found to have a significant effect on bank performance. The study concluded that the banks needs to do more in
containing some of the challenges studies since they impacted on agency banking as a product generally. Based
on the findings, the study made recommendations to commercial banks management, academicians and
policymakers. The study recommended that policy makers heighten awareness to the public through regular
open day forums, media and exhibitions on the need and use of agency banking, and develop strategies that will
capture new customers. Banks should also be allocating more resources to most especially minimize liquidity
problems. The study finally suggested further research on the effects of adoption of agency banking on other
upcoming agencies for other commercial banks and microfinance institutions.
Description
Research Article
Keywords
Agency banking, Bank performance, Bank agent, Commercial banks
Citation
IOSR Journal of Business and Management (IOSR-JBM) Volume 19,Issue 4. Ver. II (Apr. 2017), PP 70-76