Service quality dimensions adopted by commercial banks in agency banking in Kenya
Busili, Aggrey A
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Service quality has become indispensable to organizations, marketers and academic researchers over a long period of time. This is due to its impact on improving competitiveness of a firm and maintenance of customer loyalty to organizations. Banking services are homogenous in nature, thus the dimensions of service quality at banks' third party outlets extremely vital to facilitate coherence in operations. The objectives of the study were to determine how service quality dimension are applied by commercial banks at the agency banking outlets and the challenges that Commercial Banks in Kenya face in effecting Service quality incentives at agency banking outlets. Descriptive survey research design was used with the target population comprising of all banks with agent bank outlets in Kenya. A self administered questionnaire was used to collect primary data. The study results indicated that banks take service quality dimensions in agency banking to be of great importance. The banks have put in place numerous mechanisms that aid in facilitating service quality at agent banking outlets and this was attained through the analysis of various elements of the dimensions discussed. The banks have a need to improve on these incentives as the indication of great competition emerging for the same kind of services. The challenges cited included system problems, rejection of the agency model by customers, location problems and poor training of agents in new and current developments such as Anti-Money-Laundering. The study recommends banks to put in place strategies for service quality at agent banking outlets. Research and development .should be given importance in unearthing underlying issues that affect service quality to enable improvements on strategies and activities. Benchmarking with other industry players enables evaluation of self performance and pin points out areas for improvement and strong areas. Banks also need to improve on security matters at the agent bank outlets and carry out continuous training of staff on new developments in the industry.