Factors influencing the adoption of agent banking innovation among commercial banks in Kenya
This study sought to determine the factors that influence agent banking adoption among commercial banks in Kenya. This was a descriptive study aimed at determining the factors affecting adoption of agent banking amongst commercial banks in Kenya. A census survey design was employed by use of questionnaires sent out to the respondents. The study population comprised of all the 43 commercial banks in Kenya as at the time of study. The data collected was analyzed using descriptive statistics. The findings of the study revealed that the main factors influencing the adoption of agent banking among commercial banks in Kenya are, (i) Cost reduction (ii) Enhancement of customer service (iii) Expanded presence by banks particularly in remote areas. The most important factor was cost reduction in the provision of banking services. Another key factor was the prospect of customer service enhancement owing to a greater level of convenience that comes with the presence of retail agent outlets. This study found that the introduction of third party retail agents presents several risk factors with regard to effective regulation and supervision of banks, and therefore recommends that the regulator closely monitors the banking sector and strictly enforces compliance with the agent banking guidelines, while the banks continuously ensure careful vetting of agents.