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The study was set to examine the agency banking and financial performance in commercial banks in Uganda, using Centenary Bank as a case study. The study focused on three specific objectives: To establish whether agency banking regulations and procedure are complied with; accessibility to financial services and challenges associated with adoption of agency banking affects financial performance of Centenary Bank.
The study used a target population of 110 Centenary Bank staff, agency clients and customers. A sample of 86 respondents was selected using Neumann's formula (2000). A descriptive research design was employed and both quantitative and qualitative approaches of data collection were used. Data were analyzed using descriptive statistics where the statistics proved that r2=0.802; significance level was found and the hypothesis testing proved that there is a strong and positive relationship between agency banking and financial performance of Centenary Bank.
The study findings revealed that that there is a significant and positive relationship between agency banking and financial performance of Centenary Bank. It was discovered that, Agency Banking Regulations and Procedures (r=0.889, P<0.005), Accessibility to Finance (r=0.891, P<0.005); Banking Agency Challenges (r=890, <0.005); this indicates that challenges associated with agency banking affect financial performance in the bank.
The study concluded that agency banking regulations and procedure are complied with; accessibility to financial services improve financial performance and challenges associated with adoption of agency banking affects financial performance of Centenary Bank.
The study recommends that Central Bank should consider coming with a clear agency banking regulatory policy which creates a universal platform for all banking institutions. Security measures should be highly emphasized on the agents by the parent banks in order to increase their volumes and value |
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