| dc.description.abstract | The twenty first century has been characterized by rapid growth and application of
technology that entails innovative ways of doing business, in a way that enhances
efficiency and effectiveness with reduced cost and improved productivity/ profitability.
The banking sector in Kenya has encountered developmental innovations that includes;
ATM, credit card, mobile banking, internet banking, youth oriented accounts, women
oriented banking, children accounts, sharia compliant banks most recently agency
banking since may 2010. This study sought to establish how agency banking has
improved the financial performance of commercial banks in Kenya. The researcher was
guided by objectives; to establish the extent of implementation of agency banking and
financial performance and to determine the challenges facing commercial banks at
implementation of agency banking. The researcher reviewed relevant literature and
conducted a descriptive research design survey study to find out the effect of agency
banking top financial performance of commercial banks. The results of the study indicate
that to a large extent agency banking had been implemented by commercial banks
practicing agency banking. That agency banking has improved the financial performance
of commercial banks in Kenya in terms of profitability, reduced employment cost and
establishing branches. A cross-tabulation was done by chi-square test to find out the
relationship between bank operation cost and bank financial performance as a result of
implementation of agency banking. The value for the association between bank
operation cost and bank financial performance as a result of agency banking was obtained
as 13.04 with 4 degrees of freedom and the significant result. Agency Banking has also
its share of challenges that was generally agreed that there was room for improvement | en_US |
