Factors Influencing the use of Agency Banking by Bank Customers in Makueni Sub-Country

Eric Muendo Kilonzo, Jared Ariemba, Joash Migosi

Abstract


This study focused on the factors influencing the use of agency banking by the residents of Makueni Sub-County, Kenya. The researcher was guided by four objectives; firstly, to determine the influence of agent characteristics on the use of agency banking by the residents of Makueni Sub-County, secondly, to determine the influence of the banking products offered by bank agents on the use of agency banking by the residents of Makueni Sub-County, thirdly, to establish the influence of agents’ operating hours on the use of agency banking by the residents of Makueni Sub-County and fourthly, to determine the influence of the banks’ location on the use of agency banking by the residents of Makueni Sub-County.  The study used descriptive survey design and the target population was 276 bank customers in Makueni Sub-County. The respondents were selected using stratified and convenience sampling. Data was collected 255 respondents using questionnaires. Data analysis was done using both descriptive and inferential statistics with the help of statistical package for social scientists (SPSS). Qualitative data was analyzed thematically according to the study objectives. The findings of the study revealed that there was a strong positive correlation and a significant relationship between the agency characteristics and use of agency banking, agency banking products and use of agency banking, operating hours and use of agency banking and location of mainstream bank and the use of agency banking. The multiple regression analysis results showed that the banking products had a significant prediction of the use of agency banking by the residents of Makueni Sub-County. This study recommends that diversification of the products and services provided by the banking agencies in the study area as well as further research in the area to find out other factors influencing the use of agency banking.


Keywords


Agency characteristics, banking products, Operating hours, location of mainstream banks, use of agency banking,

Full Text:

PDF

References


Arthur, A., Elliot, J.C., & Elaine, N.A. (2011). Statistics for Behavioural and Social Sciences. St. Upper Saddle River: New Jersey: Pearson Education Inc.

Bolt, W., & Leo, H. (2012). Bank Profitability during Recessions. Journal of Banking & Finance, 36(9), 2552–2564.

CBA. (2013). Financial Results hald year 2013. Retrieved 3rd October, 2015, from http://commercialbankgroup.com/index.php/investor-relations/financial-results

CBK. (2013). Developments in the Kenyan banking sector for the quarters ended 31st Mar, 30th June and 30th Sep 2013.

CGAP. (2011). Agent management toolkit: Building a Viable Network of Branchless Banking Agents.

Cooper, D.R., & Schindler, P.S. (2006). Business Research Methods. New Delhi: Tata McGraw Hill.

Efam, A. (2008). Evaluation of Agent banking Models In different Counties. Nairobi: Oxford Policy management Ltd.

FSD, Kenya. (2014). Fin-Access National Survey 2013. Nairobi: FSD Kenya.

Habil, O. (2013). Kenya Bankers‘ Association Report. Retrieved from www.theworldfolio.com/interviews/2013

Kitali, M.C. (2015). Impact of Agency Banking on Customer Satisfaction: A Survey on Agent Banks in Kenya. International journal of Economics, Commerce and Management 3(6), 24.

LBG. (2011). Annual Financial Statements and Management reports. Stratford, East London: Lloyds Banking Group.

Lomosi, W.A. (2015). Factors Influencing the use of Agency Banking by the Residents of Kitui County, Kenya. (Master of Arts in Project Planning and Management), University of Nairobi, Nairobi. (L50/72236/2014)

Lozano, A, & Mandrile, M. (2009). A new agency model for agency banking in Colombia. Viale Vaticano 1(4), 106-165.

Macesich, G. (2000). Money systems and growth.

Mamwa, C.C. (2014). Consumer Attitude Toward Agency Banking by Customers of Commercial Banks that Offer Agency Banking in Machakos Township, Kenya. (Master of Science in Marketing), University of Nairobi, Nairobi, Kenya. (D65/64213/2014)

Mangatu, T., & Shamaz, S. (2013). Assessment of factors influencing adoption of Agency Banking in commercial banks.

McCormick, D., Alila, P.O., & Omosa, M. (2008). Business in Kenya. Nairobi: Acts Press.

Modupe, L. (2010). Increasing Access to Finance through Agency Banking. Enhancing Financial Innovation & Access.

Musau, S. M. (2013). An analysis of the utilization of agency banking on performance of selected banks in Nairobi County, Kenya.

Mutie, J.M., Bichanga, J., & Mosot, J. (2015). Investigation on Importance of Agency Banking in Kenya: A Case of Equity Bank in Kitui Sub-County, Kitui County, Kenya. International Journal of Scientific and Research Publications., 5(10).

Ndungu, C.G., & Njeru, A. (2014). Assessment of Factors Influencing Adoption of Agency Banking in Kenya: The case of Kajiado North Sub County. International Journal of Business and Commerce, 3(8), 20.

Ombutora, E. K. & Mugambi, F. (2013). Role of agency banking on the performance of banking agent entrepreneurs: A case study of Co-operative Bank Co-op Jirani in Kibera, . Paper presented at the International Journal of Social Sciences and entrepreneurship, Nairobi. . http://www.ijsse.org/articles/ijsse

Owen, D. (2002). An Introduction to Proposal and Thesis Writing, . Nairobi: Paulines Publications Africa.

Pierce-Baker, L. (2010). Kenya's Complete Property Guide. Property Kenya Magazine.

Rogers, E.M. (Ed.). (2003). Diffusion of Innovations (5 ed.). New York: Free Press.

Sand. (2012). Problems experienced by people attempting to gain access to financial services in Nairobi slums. . University of Nairobi.

Schumpeter, J. (1911). The Theory of Economic Development. Cambridge, MA.: Havard University Press,.

Venter, R., & Rwigema, H. (2004). Advanced entrepreneurship. Capetown: . Oxford University Press.




DOI: http://dx.doi.org/10.20525/ijfbs.v6i4.823

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 International Journal of Finance & Banking Studies (2147-4486)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
International Journal Finance and Banking Studies (2147-4486) by Hasan Dinçer is licensed under aCreative Commons Attribution-NonCommercial 4.0 International License.
Based on a work at www.ssbfnet.com/ojs.

 

"SSBFNET SSBFNET SSBFNET