Challenges and Prospects of Agent-banking in Ethiopian Banking Industry: The Case of Selected Private Banks in Addis Ababa

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title




This study aims to examine Challenges and Prospects of Agent-Banking in Ethiopian Banking Industry: the case of Selected Private Banks in Addis Ababa, Ethiopia. In order to achieve the objective of this study the researcher has adopted qualitative research approach by distributing questionnaires to four commercial banks. Those are selected based on their history to agent banking operation and participation on the system. The study indicates that the major Challenges of Agent-Banking in Ethiopian Banking Industry in case of Selected Private Banks of Addis Ababa, Ethiopia is lack of customer awareness, limitation in network infrastructure, Resistance to changes to the technology, lack of sufficient motivational support, availability of substitutable service by banks in the city and lack of trust on system. This desires include to improve organizational performance and productivity, Desire to cover wide geographical area, desire to improve the relationship with customers and Desire to reduce branch transaction cost are among leading forces. The study has also indicated the major opportunities that will help the system to enhance its operational capabilities such as; increasing number of mobile holder and high number of unbanked populations could be seen as big opportunity. Finally, study recommended that the banks may have to aware their customer to use the system and facilitate proper and continuous training for their employees and agents, increasing the security of the system, the government need to support banking sector by facilitating sufficient infrastructural development as the system is helpful to enhance the country economical follow.



Banking industry, Adoption and development of Agent-Banking system