Implementation of agent banking strategy by Commercial Banks in Mombasa County
Mugambi, Doris K
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Agent banking has drawn interest from financial institutions. The banking model that was first rolled out in 2010 in Kenya is taking transactions out of bank branches into retail stores in every neighborhood. This study focuses on establishing the implementation of agent banking strategy by commercial banks in Mombasa County as well as identifying the factors influencing the implementation process. This is important given that agent banking is fairly new in the banking sector. Agent banking is vital especially with Vision 2030 seeking to increase access to financial services and products to a wider section of Kenyans, particularly the poor, low income households and micro and small scale enterprises. Data was gathered from fifteen branches of three commercial banks that were first to roll out agent banking in Mombasa County. The data was collected over a period of two weeks from branch managers and supervisors in charge of agent banking. The data collection involved indicating on a Likert scale the extent to which the respondent agreed on the given statements. Permission was first sought from Agent Banking Regional Managers and in some cases Human Resource Managers to allow the data collection from the branches. Questionnaires were left behind at the various branches and collected later for compilation and analysis. The results of the study indicates that agent banking strategy is under implementation in the various branches of the three banks that is Equity Bank, Kenya Commercial Bank and Cooperative Bank of Kenya in Mombasa County. There were variations in some cases. For instance, the involvement of managers and employees in strategy formulation and the changes in organization structure necessitated by agent banking strategy. Other variations were evident on the factors impeding the implementation process. Some factors were impeders in some branches while in others they were not. Lack of hundred percent agreement on the given factors is an indication that context matters in the implementation of a strategy.