2. Category Target population
Branch Manager 1
Departmental mangers 5
Tellers 10
Credit officers 6
Personal bankers 3
Customer care employees 5
Total 30
Category Sample size
Branch Manager 1
Departmental mangers 5
Tellers 10
Credit officers 6
Personal bankers 3
Customer care employees 5
Total 30
Frequency Percentage Cumulative
percentage
Male 18 60 60
Female 12 40 100
Total 30 100
Age Frequency Percentage Cumulative
percentage
Below 20 1 3 3
21-30 16 56 59
31-40 7 23 82
41-50 4 12 94
Above 50 2 6 100
Total 30 100
Level of education Frequency Percentage Cumulative
percentage
O’ level 0 0 0
Certificate 2 6.7 6.7
degree 20 66.7 73.4
Masters 8 26.6 100
Total 30 100
Working experience Frequency Percentage Cumulative
percentage
Less than 3years 16 53.3 53.3
3-5 years 12 40 93.3
5-10 years 2 6.7 100
Above 10 years 0 0
Total 30 100
set up cost SA A UD D SD Totals Means
lower set up cost Freq 6 20 3 1 0 30 4.033
% 20.0
0
66.6
7
10.0
0 3.33 0.00
100
lowers running costs promise Freq 4 25 0 1 0 30 4.067
% 13.3
3
83.3
3 0.00 3.33 0.00
100
minimizes fixed costs Freq 9 19 1 1 0 30 4.200
% 30.0
0
63.3
3 3.33 3.33 0.00
100
acquisition costs are lower Freq 3 25 1 1 0 30 4.000
% 10.0
0
83.3
3 3.33 3.33 0.00
100
service delivery SA A UD D SD Totals Means
many customers are satisfied by
reducing their time in queuing
Freq 5 22 2 1 0 30 4.033
% 16.6
7
73.3
3 6.67 3.33 0.00
100
people visit the agency without
going to bank
Freq 4 25 0 1 0 30 4.067
% 13.3
3
83.3
3 0.00 3.33 0.00
100
customers complains are well solved
making them satisfied
Freq 10 18 1 1 0 30 4.233
% 33.3
3
60.0
0 3.33 3.33 0.00
100
customers can withdraw, deposit or
send money within a short time
Freq 1 26 2 1 0 30 3.900
%
3.33
86.6
7 6.67 3.33 0.00
100
agency banking is accessible to every
people even the rural people
Freq 3 26 1 0 0 30 4.067
% 10.0
0
86.6
7 3.33 0.00 0.00
100
Response Frequency Percentage
Yes 14 46.6
No 16 53.4
Total 30 100
challenges SA A UD D SD Totals Means
may lead to financial crisis Freq 12 15 2 1 0 30 4.267
% 40.00 50.00 6.67 3.33 0.00 100
agents lack capacity to
handle large transaction of
cash
Freq 9 17 3 1 0 30 4.133
%
30.00 56.67 10.00 3.33 0.00
100
agents faces security
measures challenges
Freq 7 21 1 1 0 30 4.133
% 23.33 70.00 3.33 3.33 0.00 100
the host bank faces
constituents to supervise
and regulate agent
Freq 10 17 2 1 0 30 4.200
%
33.33 56.67 6.67 3.33 0.00
100
the lack of expert training
may be a problem in
dealing with cash in cash
out transaction
Freq 3 26 1 0 0 30 4.067
%
10.00 86.67 3.33 0.00 0.00
100
Set up cost Strongly agree Agree Disagree Strongly disagree
Lower set-up cost
Lowers running
costs promise
Minimizes fixed
costs
Acquisition costs
are lower
Service delivery Strongly agree Agree Disagree Strongly disagree
Many customers
are satisfied by
reducing their
time in queuing
Many people
visit the agency
without going to
bank
Customers
complains are
well solved
making them to
be satisfied
Customers can
withdraw,
deposit or send
money within a
short time
Agency banking
is accessible to
every people
even the rural
people
Challenges Strongly agree Agree Disagree Strongly disagree
May leads to
financial crisis
Agents lack
capacity to handle
large transactions
of cash
Agents faces
security measures
challenges
The host bank face
constituents to
supervise and
regulate agents
The lack of expert
training may be a
problem in dealing
with cash-in/cash
out transaction.
Branch set up cost
Credit access
Agency banking
Service delivery
Profitability Market
share
Agent banking represents a significant opportunity to reduce transaction costs – such as travel - for clients by bringing financial services to hard-to-reach and geogr
In countries where models have been successfully implemented, regulators and supervisors have addressed the potential risks of using a large number of agents to
Banking agents help financial institutions to divert existing customers from crowded branches providing a “complementary” often more convenient channel. Othe
Banking agents are the backbone of mobile banking, i.e., performing transactions over a mobile device, most often a mobile phone. To enable clients to convert ca
1.2 Statement of the Problem
In the light of growing competition within the financial sector it has become imperative for banks and other financial institution to develop new products and servic
1.3 Objectives of the Study
The main objective of the study is to investigate the effects of agency banking on the operational performance o
•To identify the effects of agency Banking on branch set up costs at Equity Bank.
•To find out the effects of agency banking on service delivery at Equity Bank.
•To investigate the effects of agency Banking on credit access at Equity Bank.
•To determine the impacts of agency banking on profitability of financial
Institution at Equity bank.
1.4 Research Question
Research questions shown below are derived from the research objectives
•What are the effects of agency banking on branch set up costs at Equity Bank Eldoret?
•What are the effects of agency banking on service delivery at Equity Bank Eldoret?
•What are the effects of agency banking on credit access at Equity Bank Eldoret?
•What are the impacts of agency banking on profitability of financial institution at
Equity Bank?
1.5 Significance of the Study
The study will help managers of different institution to know more challenges affecting Agency banking and take corrective measures to improve the business. It w
1.6 Limitation of the Study
Unwilling respondents limit the inference by refusing to answer questions or by giving exaggerated information on the topic under research study, suspicions by ba
1.7 Scope of the Study
The study investigated agency banking and its effects on the profitability at Equity bank Eldoret. The target population was 30 respondents from which a sample siz
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Past Studies
In some countries, for example US, banks have successfully expanded their outreach by engaging local “agents” or “correspondents” to offer their services. These l
Agent banking represents a significant opportunity to reduce transaction costs – such as travel - for clients by bringing financial services to hard-to-reach and geogr
In USA where models have been successfully implemented, regulators and supervisors have addressed the potential risks of using a large number of agents to deliv
A banking agent is a retail or postal outlet contracted by a financial institution or a mobile network operator to process clients’ transactions. Rather than a branch t
Globally, these retailers and post offices are increasingly utilized as important distribution channels for financial institutions. The points of service range from post o
Banking agents are usually equipped with a combination of point-of-sale (POS)card reader, mobile phone, barcode scanner to scan bills for bill payment transaction
Local regulation will determine if financial institutions are allowed to work through retail outlets. Regulators generally determine what kind of, if any, financial insti
Table 4.3 Level of Education
From the findings results showed that 6.7% of the respondents were of certificate level, 66.7% were of degree level and 26.6% of the respondents were o
4.2.4 Working Experience
Table 4.4 Working experience
From the research findings results showed that 53.3% of the respondents were below 3yeras working experience, 40% of the respondents have worked b
4.3 Specific Objectives
4.3.1 Effects of agency banking on branch set up costs
Table 4.5 Effects of agency banking on branch set up costs
According from the research findings results showed that 80.6%, mean(4.033) were of the opinion that agency banking is effective in set up cost as it lowe
4.3.2 Effects of agency banking on service delivery
Table 4.6 Effects of agency banking on service delivery
From the findings results showed that 80.6% mean (4.033) of the respondents were of the opinion that agency banking satisfy many by reducing their tim
4.3.3 Effects of agency banking on credit access
Table 4.7 Effects of agency banking on credit access
From the findings results showed that 46.6% of the respondents were of the opinion that agency banking does not affect credit access while 53.4% of the
4.3.4 Impacts of Agency banking on profitability
Table 4.8 Impacts of Agency banking on profitability
Researcher wanted to know the challenges facing agency banking. From the findings results showed that 85.4% (mean=4.267) were of the opinion that ag
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMENTATIONS
5.0 Introduction
The findings presented in chapter four were further summarized here so that specific findings can be obtained clearly in relation to the research objective
5.1 Summary
Gender of the Respondents
From the findings results showed that majority of the respondents who participated in the study were male compared to female.
Age of the Respondents
Age factor is an important variable to be included in the study this is because it determined the behaviour and the way questionnaires was answered. The
Level of Education
Educational level of the respondents is very important variable that determine how the respondents responded to the questions. The findings showed tha
Working Experience
This variable gives out the required or the necessary experience which researcher have. The finding reveals that majority of the respondents have worked
Effects of agency banking on branch set up costs
Male
Female
1. What is your age bracket?
0-20 years
21-30 years
31-40 years
41-50 years
Over 50 years
1. What is your educational level?
O’ level
Certificate
Degree
Masters
•working experience
Less than 3 years
3-5 years
5-10 years
Above 10 years
Section B: Specific Objectives
5. What are the effects of agency banking on branch set up costs at equity bank Eldoret?
Any other specify
……………………………………………………………………………………………………………………………………………………………………………………………………………………
6. What are the effects of agency banking on service delivery at equity bank?
Any other Specify
……………………………………………………………………………………………………………………………………………………………………………………………………………………
7. Are there effects of agency banking on credit access at equity bank?
Yes
No
In your opinion how agency banking does affects credit access
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
8. What are the challenges of agency banking on profitability of financial institution at Equity bank?
Thank you for your time and response.
