FACTORS AFFECTING AGENT BANKING DEPOSIT MOBILIZATION: IN CASE OF LION INTERNATIONAL BANK S.C.

Abstract

Agent banking has increasingly gained importance in developing countries over the last two decades. However, the extent to which agent banking can be used as a tool to mobilize deposit in the banking sector remains largely unknown and the true benefits of the agent banking model to customers, the banks and the bank agents also remains largely unstudied. The main objective of the study was to assess factors affecting agent banking deposit mobilization in case of lion international bank s.c. The study was conducted among 1,300 recorded agents with a respondent sample of 306 agents. Stratify random sampling technique was used to select the respondents who were requested to fill the questionnaires. The study used both descriptive and multiple regression analysis. The study concluded that agents had low facility fulfillments on hello cash mobile and agent banking deposit mobilization. Furthermore, the regression result showed that hello cash mobile and agent banking and accessibility have a positive effect on their deposit mobilization. Besides, the study found that as per as mean and standard deviation results showed that agents deposit mobilization from bill payment or business customers were having moderate extent. Finally, the study recommended that, Lion international bank should be assign more agents who are accessible to the customer to mobilize deposit at a grass root level and also to create awareness the customers where the service is found and how to serve from hello cash mobile and agent banking service.