Consumer Attitude Toward Agency Banking by Customers of Commercial Banks That Offer Agency Banking in Machakos Township, Kenya

Abstract

The study sought to determine the consumer attitude towards agency banking in commercial banks of Kenya. The study had two specific objectives namely: to determine the extent to which commercial bank customers in Kenya are aware of the existence of agency banking in Kenya and to determine the attitudes of consumers towards the use of agency banking in Kenya. The study used applied descriptive research design. The target population for the study constituted 150,041 customers in Machakos town and a sample of 70 customers were selected that is 14 customers from each commercial bank selected randomly from each agency. Both quantitative and qualitative approaches were used in collecting data. The study found out that commercial bank customers are aware of the existence of agency banking in Kenya since the overall mean score is more than half the mark of 2.5 which is half of the possible 5 marks. . The study also found out that the attitude of consumers towards the use of agency banking in Kenya is good since the overall mean score is more than half the mark of 2.5 of the possible 5 marks. The study found out that most banking customers are to great extent aware of the existence of agency banking and also the presence of agency banking made them prefer the commercial bank they were banking with. However, the agency banking proximity at any point in time had moderate mean of 3.30 and the agency banking was the first method that comes to mind when the customers want to transact at the bank. This means that commercial banks customers prefer agency banking being near to them mainly for security reasons. The researcher further recommended further research could seek to address this limitation by use of multiple industries setting to conduct their studies and this would enhance the validity and generalization of the research findings.