| dc.description.abstract | Agent banking has been adopted in many countries all over the world including Kenya. Banks in Kenya have had to deal with numerous legal, operational and technological hurdles in a bid to bring about agent banking. The purpose of the study was to establish factors influencing the growth of Family Bank Pesa Pap agents in Nairobi County. Descriptive survey research design was adopted for this study. The research study focused on investigating factors influencing the growth of Family Bank Pesa Pap agents in Nairobi County. The populations of the study consisted of 800 employees of Family Bank and 70 agents located within Nairobi County. Out of the total population of 870 employees of Family Bank and agents, a sample size of 274 was selected. Stratified random sampling technique was used to select the respondents. The study used semi structured questionnaires containing closed-ended and open-ended questions to collect primary data. The researcher carried out a pilot study to pretest and validates the questionnaire. The researcher applied and obtained a permit from National Council for Science Technology and Innovations before embarking on the study. Descriptive data was analyzed using frequency counts, percentages, means and standard deviations while inferential analysis was done using Multiple Regression. Data was also analyzed using SPSS. From the study the value of R squared was 0.653 an indication that there was variation of 65.3% on the growth of agent banking due changes in Central Bank Regulations and Policies, Start up cost Customer information security and Technological requirement. The study established that the factors under study negatively influenced the growth of Family Bank Pesa Pap agents in Nairobi County as signified by the coefficients: Central Bank Regulations and Policies (-0.237), Start up cost (-0.231),Customer information security(-0.239) and Technological requirement(-0.281) .The study concluded that Banks should not overly restrict their customers in terms of Policies and Regulations or else they risk losing customers hence poor growth of agents, the cost of start up for agents was very expensive and accessible by few customers and Technology had associated data and network risks which made them susceptible for conducting financial transactions. The study recommended that the management of Family Bank should consider providing free regular training to their agents on the various updates in the market. The study recommends that CBK should formulate new policies relating to money transfers, this should be done in view of increasing levels of scrutiny on money transfers, this will help curb money laundering and financing of criminal activities as this would enhance growth of Family Bank Pesa Pap agents, Family Bank should develop an IT based automated system to identify suspicious activity/transaction report (STR/SAR) before introducing the services as this will help to win customers confidence with the system thus encouraging trust by the customers. The findings of the study are of great importance to the managers of banks, policy makers, banking agents, customers as well as future scholars and academicians. It provides the basis for various recommendations in tackling the factors faced in setting up agent banking networks. | en_US |
