FACTORS AFFECTING THE ADOPTION OF AGENT BANKING: (THE CASE OF LION INTERNATIONAL BANK S.C)

Abstract

The main objective of this study was to assess factors affecting the adoption of agency banking the case of Lion International Bank S.C. An explanatory research design was used for analyzing the effect of the identified factors on adoption of Agency Banking. In order to achieve the objective of this study, quantitative research approach was used and self-administered data was collected through questionnaires. The study has used both types of data primary and secondary data using a self administered questioner. The participants of the study were taken customers of the bank that comprises of 485 which were selected by employing simple random sampling methods. To analyze the data both descriptive and inferential statistics were used while the descriptive was used to analyze the demographic data & Mean and Standard deviation the inferential statistics were used to measure the relationship between the variables and to evaluate the effect of the proposed independent variables (Technological, Organizational and Environmental) factors on the depend variable (the adoption of agent banking). The findings of the study reveal that the technological factors, organizational factors and environmental factorshave a positive and significant relationship with the adoption of agency banking. The regression result also shows that all variables of the study have significant effect on agent banking; the beta coefficient analysis shows that technological factors has the highest effect on the adoption of agency banking. Finally, the study concludes that by highly recognizing and managing Technological, Organizational and Environmental factors had likely to support and facilitate in the adoption of agency banking, availability of developed ICT infrastructure, believe the technology which is provided by the bank, creating awareness of the services. Finally based on the result recommendation were forwarded that; the bank should also embark on regular training of the agents to ensure they are familiar they understand Agent Banking services and expanding their network coverage of these Agent Banks around the country to ensure that customers have easy access to these services.