Agency banking kenya pdf

Please do not hesitate to contact me. Industry-specific and extensively researched technical data partially from exclusive partnerships. A paid subscription is required for full access. Additional Information. Financial Institutions. Average bank cost-to-income ratios in Europe Q2 , by country. As a Premium user you get access to the detailed source references and background information about this statistic. As a Premium user you get access to background information and details about the release of this statistic.

You only have access to basic statistics. This statistic is not included in your account. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Premium statistics. Read more. The number of banking transactions undertaken through bank agents in Kenya decreased to roughly million in , a decline of 30 percent in comparison to the previous year.

According to the source, the growing use of mobile phone banking led to the shrinkage in the volume of transactions through agency banking, a system rolled out in by the Central Bank of Kenya. It allows commercial banks to contract third parties to offer financial products and services on their behalf. Traditional banks could, therefore, extend their network without the need of increasing the number of branches. You need a Single Account for unlimited access. Full access to 1m statistics Incl.

Single Account. View for free. Please do not go overboard with a barrage of emails and offers after they have made an enquiry. Another way to encourage warm fuzzes is to offer occasional freebies. If you can give people something of value, they will be appreciative.

Anything useful is particularly good. Customer relationship management Before spending time and money going after new customers, one should have a relationship with the current ones first. Building these relationships means treating your customers as if they truly are your strategic partners and showing them that you truly care about them.

It is important that to try and satisfy them with right services by making the services available at the right time and location. One may spend twice as much to get new customers than maintaining your existing customer base, therefore the need to maintain the existing ones.

Conceptual framework The research problem above involved examining the impact of agency banking on customer satisfaction as far as provision of financial services is concerned. In this study, there are two variables that is, Agency banking being the independent variable and Customer satisfaction being the dependent variable.

The objective of this study was to find out the impact of agency banking on customer satisfaction. These two variables were measured by use of a questionnaire whereby questions on the measurable objectives i. This has been due to increased congestions, queuing in banks and centralized service delivery sites in banking halls.

This has resulted to too many customers having a negative opinion over service delivery by financial institutions thus opting for other ways of satisfying their financial needs e. The banks have taken this as an existing gap in the market where they have made their financial services accessible, efficient and effective by creating agent banking outlets in unbanked and unreached areas.

This study tries to establish and measure the level of customer satisfaction by banks through their adoption of agent banking models and whether there is a need for more improvement in agency banking. Figure 2. Conceptual Framework Customers stay with the company longer. Happy customers tell 4 to 5 others of their positive experience.

Dissatisfied customers tell 9 to 12 how bad it was. Keeping in view the significance of service quality as a means of competitive advantage and organizational sustainability, the banks pursuing multidimensional approaches to improvement in service quality to attract and retain customers Newman, The cross-sectional survey design was used.

This design entailed the collection of data of more than one case and at a single point in time in order to collect a body of quantifiable data in connection with several variables which were then examined to detect the patterns of association Bryman A survey method was used in this study. Population and sample size The population of study consisted of the agency banking customers.

A random sample of customers was selected. In determination of the sample size, geographical location of the agent banks was considered in order to have both urban and rural users represented. The respondents were people from different backgrounds, different age, and gender, level of education and status of work whether employed or non-employed.

Instrumentation The main instrument that was used in collection of data for the study was a questionnaire that consists of closed ended questions and observations. The questionnaire consisted of seven questions which focused on the degree of satisfaction, and it was divided into two parts. First part focused on customer satisfaction, whereas the second part focused on general information.

More suggestions and comments were made. Data collection Data was collected using a semi-structured questionnaire served on respondents through direct contact with the customers and drop and pick methods. The exercise obtained core information and supplementary information was obtained through further probing of the respondents and by reading relevant publications of other agents in the industry.

Out of the questionnaires, were completed. This gives a response rate of Data thus collected was analyzed using descriptive statistics. Editing was undertaken before data analysis.

The raw data was coded into micro soft excel and later imported into SPSS for data view and variable view. Thus, majority of the respondents were male. Table 4. Table 1. This shows that most males have bank accounts and prefer use of agent banks to access financial services.

On the other hand female were fewer compared to male, this is because most females may not have bank accounts or they were unaware of the existence of agent banks. Table 2. This is because most of them were youths and they could be more aware of the existence of agent banks which provide fast and low cost services as compared to the banks.

The respondents aged years also benefit from agent banking services but most of them could be unaware of the existence of agent banks. The respondents above 40 years could be resistant to change from main bank branches to agent banks due to great experience of using banks.

The respondents below 20 years may have no bank accounts or may have minimal bank transactions. As is evident, majority of the respondents, Then followed by those with diploma Table 3. This could be because of their greater Knowledge of the existence of agent bank services. Those respondents with secondary, primary and no education could be unaware of existence of agent banks and could not be having bank accounts. Others were self-employed and their bank accounts are normally very active because of small daily transactions.

The employed respondents were fewer than the unemployed. This could be because many of them are above 40 years and could therefore be resistant to change from main branches to use of the agent banks.

This could be attributed to the fact that Voi town being the most unbanked compared to others had the most agent bank outlets hence more agent bank users. Other locations such as Eldoret, Nairobi, Meru and Kitui had lesser agent bank users as many customers preferred main bank branches to agent banks outlets. Tharaka and Kakamega respondents were unaware of existence of agent banks.

Table 6. This implies that most of the respondents felt that they could trust agent banks and deal with them freely. They also felt that bank agents were competent and always ready to serve them.

They also felt that agent banks offered high quality services, good service delivery, and reliable services and were more responsive towards their complaints. The procedures used were to determine whether there is significant impact of agency banking on customer satisfaction.

This was to find out if there was a significant difference between male and female respondents on their perceived level of customer satisfaction. To overcome this hurdle paired sample t- tests were performed and the results were as shown in table 7, table 8 and table 9.

Table 7. Analysis of customer satisfaction by gender using paired sample statistics Variables Correlation sign t-values sign Responsiveness This shows that both female and male were aware of the existence of the agent bank outlets and could access them often hence the difference was insignificant. This means that they all benefits from agent bank services. This was to find out if there was a significant difference between the highly educated and less educated respondents in their perceived levels of customer satisfaction.

Table 8. Analysis of customer satisfaction by education level using paired sample statistics Variables Correlation sign T-values sign Responsiveness 0. Those who were less educated could be unaware of the existence of agent banks; they did not have bank accounts, while others were resistant to change from the main banks to the agent banks.

Those who were highly educated were aware of the existence of agent banks and were satisfied with the agent banking services. This was to find out whether there was a significant difference between the employed and unemployed respondents in their perceived level of customer satisfaction. Table 9. Analysis of customer satisfaction by employment status using paired sample statistics Variables Correlation sign t- test sign Responsiveness 0. The customers were not confident with the use of agent because they felt that the bank agents were not well trained to meet their complaints as they arose.

Most of the customers were uncertain of the quality management of the agent bank outlets. From the study, it was established that different attributes of customer satisfaction can be used to improve agent banking services. Offering a wide variety of agent banking services also helps since customers prefer to go to an agent banking outlet where they can get all the services offered.

It is thus important for agent banks to look into ways of satisfying its customers as it leads to being loyal to the bank which eventually leads to more business hence more profits for the banks. The agent banks should find out all customer needs and expectations such granting loans based on analysis given by agents and use of agents to monitor portfolios in unbanked areas.

Upon identifying and understanding them, the agent banks should ensure that they meet these needs and offer more to the customers so as to ensure satisfaction. Banks should train its agents on handling customers since it was found from the study that customers value how the bank agents treat them, how they respond to their complaints and service delivery duration.

You only have access to basic statistics. This statistic is not included in your account. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities.

Premium statistics. Read more. Cash deposits were the most frequent banking transaction undertaken through bank agents in Kenya as of They equaled over 55 million, while Overall, bank agents operated nearly million banking transactions, worth around 9.

The banking agency model was rolled out in by the Central Bank of Kenya, allowing commercial banks to contract third parties to offer financial products and services on their behalf.

Traditional banks could, therefore, extend their network without the need of increasing the number of branches. You need a Single Account for unlimited access. Full access to 1m statistics Incl. Single Account. View for free. Show source. Show detailed source information? Register for free Already a member?

Log in. More information. Supplementary notes. Other statistics on the topic. Financial Institutions Largest European banks in , by assets.