Challenges of Sustainability of Agency Banking in Nigeria : A Study of Selected Commercial Banks

Agu, Bertram O.; Anidiobu, Gabriel A.; Ezinwa, Clifford E.

doi:10.12816/0033110

Cited by 2 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Agency banking can also be referred to as agent banking (Ndungu & Njeru, 2014), correspondent banking (Maitra & Upadhyay, 2017) and branchless banking (Kochar, 2016). Under agency banking, it is possible to open a bank account without going to a physical bank branch by stepping into a nearby shop, supermarket, pharmacy, business centre, etc., in a customer’s neighbourhood (Bertram et al, 2016). The constraints of agency banking include breach of confidentiality, risk evaluation, agents to training, fake currencies, security, the problem of ability to know enough of customers, money laundering, high-risk security issues, lack of awareness, lack of adequate supervision and regulation and improvement in mobile network (Bertram et al, 2016b).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The research found that agency banking is continuously improving, and the level of financial inclusion is also growing. In their study, Bertram et al (2016a) identified full financial inclusion as a prerequisite for inclusive economic development in Nigeria. Using the descriptive survey methodology, they employed questionnaires to generate data on financial inclusion from stakeholders such as banks, regulators, insurance companies and telecommunication firms, providing every household with access to a suite of modern financial services, including savings, insurance, credit and payments.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Agency Banking In Nigeria: Impact and Impediments

Ayadi,

Oke,

Oladimeji

et al. 2023

SEDME (Small Enterprises Development, Management & Extensio

View full text Add to dashboard Cite

Agency banking is branchless banking in which some banking activities are performed by third parties, which ordinarily are performed within the physical bank branches by bank personnel. This study sought to determine the impact and challenges of adopting agency banking in Nigeria. The five administrative divisions in Lagos State were the focus of the exercise. Two structured questionnaires were designed to unravel the operating environment of agency banking in Lagos State, Nigeria. The agent-focused and customer-focused questionnaires were randomly administered within the sample area. The data collection period was from June through August 2022. The valid responses totalling 752 for customers and 250 for agents were analysed. The data analysis was based on descriptive statistics. The findings showed that the need to earn extra income was the major reason for being an agent, while proximity, convenience, responsiveness and liquidity were major factors for customers using agency banking. However, the major operating problems identified included transaction failures, delayed reversal, network failures and fraud. It was recommended that improved operational efficiency, network facility upgrade and agent training would go a long way to improve agency banking in Nigeria.

show abstract