Factors Influencing the Adoption of Agent Banking in Selected Private Banks
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Date
2016-12
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Addis Ababa University
Abstract
This study aim to see the factors that influence the adoption of agent banking in commercial
banks of Ethiopia. The study tries to answer research questions such as Why do commercial
banks venture into agent banking? What are the factors influences the adoption of agency
banking? To answer the questions descriptive study used to analyze the data gathered from the
selected private banks Dashen Bank, United Bank and Lion International Bank.
The study uses different theories which have relation to the adoption of agent banking like
innovation theory, agency theory and porter’s competitive theory. Based on this a research
frame work developed by identifying the factors as independent variable and adoption of agent
banking as dependent variable. The factors identified are technology, demography, competition,
regulation, consumer behavior and untapped market.
The study identifies that the factors have great influence on commercial banks to adopt agent
banking since agent banking has benefit for the banks and the customers in reducing costs.
Moreover, agent banking helps the banks to be competitive, widen their customer base, and
enable them accessible to reach the unbanked population. The study recommends banks have to
conduct technology based competition to widen their customer base by reaching the unbanked
society which is the huge untapped opportunity. The regulatory body also has to see the
regulation from time to time to control the risk associated with the product and revise points
which might have restriction on the process.
Keywords: Adoption of Agent Banking, unbanked population, regulatory body
Description
Keywords
Adoption of Agent Banking, unbanked population, regulatory body