Bekele, Teshome (PhD)Molla, Tesfaye2018-11-062023-11-042018-11-062023-11-042016-12http://etd.aau.edu.et/handle/123456789/13810This 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 bodyenAdoption of Agent Bankingunbanked populationregulatory bodyThesis