An Evaluation of the Agency Banking Model Adopted by Zimbabwean Commercial Banks

Santu, Tinevimbo.V. Chokuda; Mawanza, Wilford; Muredzi, Victor

doi:10.15640/jfbm.v5n2a6

Cited by 4 publications

(2 citation statements)

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“…While focusing on Zimbabwe, Santu, et al (2017) did an evaluation of agency model of banking that had been embraced by institutions. The adopted design was descriptive and information was gathered from banking entities that had embraced agency banking.…”

Section: Empirical Reviewmentioning

confidence: 99%

Relationship Between Financial Inclusion Strategies and Profitability of Commercial Banks in Kenya

GELLE,

MWAMBIA, PhD,

KIMATHI

2023

strategicjournals.com

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Commercial banks are crippling with challenges in respect to their profitability. Ideally, the government of Kenya is leveraging on these banks to finance the ambitious Big-Four Agenda. However, consistent posting of losses of these banks creates doubts on whether the government will achieve the aforementioned Big-Four Agenda. This study established the relationship between agency banking and mobile banking with profitability of commercial banks in Kenya. The study was guided by the financial intermediation theory, the modern portfolio theory, the agency theory and the technology acceptance model theory. An explanatory descriptive research design was adopted targeting 41 commercial banks in Kenya. Secondary data was collected from central bank reports and publications as well as the respective banks over a period of 2016-2020. The study collected data on number of mobile banking agents, volume of transactions through mobile banking, the value of net income and the total equity from the respective commercial banks. Data was analyzed descriptively and inferentially prior to the diagnostic tests. Statistical Package of Social Sciences was used to analyze data while findings were presented using tables and figures. The study established that mobile banking (β=.261, p<0.05) had significant effect on return on equity among commercial banks in Kenya and this is significantly moderated by bank size. The study concluded that the relationship between financial inclusion strategies and profitability of commercial banks in Kenya is significant. The study recommended that business development managers, regional marketing managers working in commercial banks in Kenya should increase the agency network while creating awareness among customers on us of bank agents to carry out transactions like payment of bills. The management team should borrow experience of the Kenya Commercial Bank by slashing all the transaction costs of mobile banking.

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Section: Empirical Reviewmentioning

confidence: 99%

Relationship Between Financial Inclusion Strategies and Profitability of Commercial Banks in Kenya

GELLE,

MWAMBIA, PhD,

KIMATHI

2023

strategicjournals.com

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“…Day to day banks are becoming interested in agent banking because of some motivating factors like desiring to connect remote areas by exploring new market segments and wide-spreading geographical customers through digitalized services as banks don't need to expand an entire branch with a heavy investment in infrastructure (Santu, 2017). Moreover, agent banking produces less cost for the banks than branch banking (Hass, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Inclusions : A study on Agent Banking

Amir

2021

Dhaka Uni. J. Business Stu.

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The main purpose of this research is to reflect the attainment of financial involvement through agent banking. Trend analysis of number of accounts, amount of deposits, loans and amount of remittances flow have illustrated the positive growth of agent banking both in countryside and urban areas during 2015 to 20120.Both the Pooled OLS and random effect model demonstrate the significant impact of amount of deposits and remittances flow in agent banking of Bangladesh. Hausman test supports random effect model over fixed effect at showing the effect on deposit to number accounts but opposite results have been observed to show the effect on remittances to number of accounts. Breusch and pagan lagrangian multiplier test elucidated that OLS is better than random effect model. The data set is free from multicollinearity but variances are not constant which means heteroscedasticity problem exists. Ramsey RESET test proves the model has omitted variable bias due to insufficiency of relevant variables’ data over the consecutive years. Journal of Business Studies, Vol. XLII, No. 1, April 2021 Page 1-15

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Systemic Barriers to Financial Inclusion in the Banking Sector of Bangladesh

Kafy

Barua

2022

Business and Management in Asia: Digital Innovation and Sustainability

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An Evaluation of the Agency Banking Model Adopted by Zimbabwean Commercial Banks

Cited by 4 publications

References 0 publications

Relationship Between Financial Inclusion Strategies and Profitability of Commercial Banks in Kenya

Relationship Between Financial Inclusion Strategies and Profitability of Commercial Banks in Kenya

Financial Inclusions : A study on Agent Banking

Systemic Barriers to Financial Inclusion in the Banking Sector of Bangladesh

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