Effect of Agency Banking Services on Customer Satisfaction: a Case of Kenya Commercial Bank Agent System in Ongata Rongai, Kenya

Abstract

This study sought to analyze effect of agency banking services on customer satisfaction, with bias to Kenya commercial Bank, Ongata Rongai. Kenya Commercial Bank has been aggressive in fulfilling its financial objectives and remaining competitive in the market via regional expansion, and seeking to create a holding company, among other strategies such as mobile banking, agency banking, corporate responsibilities (KCB safari rally),among these strategies, the bank is keen on creating agent banking system in various areas as a strategy to decongest the banking halls, widen its market and to enhance client proximity hence taking the financial services closer to the clients. Despite these worthwhile efforts, the usage of agency has been slow and some clients in these targeted areas prefer to get the service from other sources like ‘Mpesa’ outlets, hence further intensifying the paradox. The aim of this study is to assist in formulating effective and efficient policies by not only KCB bank but also by other stakeholders in the banking sector in Kenya.The main objective of the study will be to identify; Effect of Agency Banking Services on Customer Satisfaction in Ongata Rongai under the Kenya Commercial Bank, Rongai Branch. A sample of three hundred and eighty–one respondents (381) was used in the study from the target population of over 50,000 customers. A self-administered open and closed ended questionnaire was utilized in collecting data from the field. Data collected was analyzed using descriptive statistics (frequencies and percentages) and inferential statistics (Pearson correlation). The findings was then be presented in the form of tables indicating that majority of them were females with 52.4% accounting for 163 respondents against male 148respondents, representing a percentage of 47.6%. 31.8 % respondents termed convenience as excellent, while 57% rated the service value as satisfactory, yet still 20.6% respondents rated responsiness execellent and 32.8% of respondent acknowledged product (service) quality as satisfactory. This information shall be useful to the government, commercial banks and other stakeholders interested in this strategy.