Agency banking as an Alternative Banking Services Delivery Channel and Financial Performance of Commercial Banks in Kenya
Keywords:
Agency banking, alternative banking services delivery channel, financial performance, commercial banksAbstract
This study set out to investigate the effect of agency banking as an alternative banking service delivery channel on the financial performance of commercial banks in Kenya. The study was anchored on modern portfolio theory and employed a causal research design. Census method of sampling was employed, where all the 40 commercial banks operating as of December 2018 formed the study units. Both primary and secondary data were used. Data was analysed using descriptive and regression analysis. The study findings showed that agency banking had a positive and significant effect on financial performance of commercial banks. The study concluded that agency banking contributes significantly to positive change in financial performance of commercial banks in Kenya. The study, therefore, recommends that the management of commercial banks should consider embracing the agency banking model and increasing the use of agents that rely on the existing infrastructure such as supermarkets, credit unions, hotels, and petrol stations to reach out to more customers.
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Copyright (c) 2022 Timothy Ngatia Mwangi , Prof. Fredrick Kalui
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