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Growth of Agency Bank

In: Business and Management

Submitted By wanjohi
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THE GROWTH OF AGENCY BANKING IN KENYA

BY

JOEL WANJOHI

D63/73163/2012

A RESEARCH PROPOSAL SUBMITTED AS ASSIGNMENT FOR DFI 513: MASTER OF SCIENCE IN FINANCE, UNIVERSITY OF NAIROBI

NOVEMBER 2012

DECLARATION

I hereby declare that this proposal is entirely my own composition. It has not been presented in any University or college for examination purposes. All references made to works of other persons have been duly acknowledged. Permission from the author or examining body should be sought before any part of this work is reproduced.

Signed: __________________

………………………………….

Reg. No. D63/73163/2012

Date: 25/11/2012

ABSTRACT

Agency banking is a new banking concept introduced in Kenya by the Central Bank (CBK). The main objective is to increase financial services outreach and to promote financial inclusion to the un-banked and under-banked population without risking the safety and soundness of the banking system. The concept is also geared towards encouraging financial institutions to use agents in the provision of banking services so as to reduce the cost of financial services and to foster financial inclusion, reach and depth. Commercial Banks worldwide offer similar kinds of services, but they could provide differences in terms of service quality. This paper analyzes past studies regarding service quality improvement in the agency banking sector. The continuing trend to a model of service quality improvement, from personnel counter services to electronic services, will be demonstrated. Improved service quality should be adopted to maintain the core competence and this research will contribute towards knowledge and background for banks to apply these findings to better shape and focus their positions in the market and also to provide service quality to customers through the agency banking concept....

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