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Factors Affecting Performance of Agent Banking System: the Case of United Bank S.c, Ethiopia

Year: 2025
Type: article
Abstract: This study has sought to determine the factors that affect Agent Banking (AB) adoption in United Bank Share Company in Ethiopia. In seeking understanding of the subject area theoretical and empirical review were made and conceptual model was developed to measure those factors that were identified in the theory. The study employed a mixed (both qualitative and quantitative) survey to assess the factors affecting performance of Agent Banking. Method of data collection is based on primary source. A purposive sampling technique was used for selecting interview respondents and a census sampling technique was used for questionnaire respondents. Descriptive statistical tools and reliability test, factor analysis, correlation and linear regressions were used in analyzing the data collected. The findings of the study revealed that the main factors affecting the adoption of agent banking in the bank in a positive way are: technological factors like that of customers’ trust and security issue of the system, organizational factors such as the needed attention for the system so that full awareness is created among customers and external Environment factors in the form of transaction limit, lack of sufficient government support and limited infrastructure development. From the findings, it can be recommended that the bank, among others, to pay the required attention to the new technology driven banking delivery system by creating awareness, working in unbanked areas and help agents while they face operational failures and give refreshment training and follow up. The government and regulatory organs should also give support to the banking industry and stand by them whenever policy interventions are required. In such away, the banking industry can develop customer base expansion, benefit from technology based competition in the form of cost reduction, awareness creation, credibility, security, ease of use, and availability to exploit the untapped potential of this banking product.
DOI: 10.20372/nadre:19046
Author: ABERA TILAHUN
Language: English
Open Access status: green
OpenAlex ID: W7082629944
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