Factors Affecting the Adoption of Agency Banking in The Case of Commercial Bank of Ethiopia (Cbe)
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Date
2024-06
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Addis Ababa University
Abstract
Agent banking is a distribution channel for providing several banking services to the underprivileged people through banking agents without establishing any formal branches. Agent banking system was not well known for the banking industry of Ethiopian. It is therefore important to isolate the factors that affect agency banking in commercial bank of Ethiopia. The study tries to identify the factors that affect the adoption of agent banking. Therefore, the general objective of this study is to investigate the factors affecting the Adoption of Agency Banking in Commercial Bank of Ethiopia (CBE). To achieve the objective of the study descriptive research designs were used. For the study quantitative Data were collected through five point Likert scale questionnaires and qualitative date were collected through open ended questionnaires. The study targeted a total of 240 employees, 92 customers and 92 agents. However, only 198 respondents from employee, 78 respondents from agents and 80 respondents from customers responded and returned their questionnaires. Collected data was analyzed by using descriptive, correlation and regression analysis. Multiple regression analysis was conducted to test the influence among predictor variables. R square value is 0.341which shows that, there is 34.1 % of variation in adoption of Agent banking due to Social and Cultural factors, Technological Factors, Economic Factors, Regulatory Factors and Environmental Factors. The study recommends that, the bank should make progress to strength its system quality by hiring highly qualified and committed Information System personnel and should strength its support system such as Information Communication Technology ICT infrastructure by working with relevant government.
Key Words
Agent Banking, Technological Factors, Economic Factors, Regulatory Factors, Environmental Factors