Abstract: Agency banking as a replica has been very flourishing in boosting the commercial banks’ performance in most developing states more so in Kenya. According to the findings the relationships in the study were positive and significant. The relationship between accessibility of banking services and operation of financial services had a coefficient of 1.251 and a p-value of 0.000. In addition, the relationship between low cost of service and financial services of national bank of Kenya had a coefficient of 0.800 and a p value of 0.000. Further, the relationship between customer and the financial services of national bank of Kenya had a coefficient of 0.311 and a p-value of 0.008.The study concludes that there is a positive and significant relationship between accessibility of banking services, low cost of service and customer transactions as a result of agency banking and financial services of national bank of Kenya in kiambu county. Banking using agents excels in service quality and service delivery. Agency banking has low infrastructural cost and hence reduction in cost. Efficiency and convenience in operation in agency banking have increased the banks customers' transactions. The study recommends that national bank of Kenya in Kiambu County should increase the number of agents in estates and in the rural areas. This study also recommends that national bank of Kenya banks should also lower the charges of making transactions in agency banks. To improve the adoption of agency banking, national bank of Kenya in Kiambu County should improve customer’s perception by making more advertisements and increase promotion activities.
Keywords: financial services, commercial banks, customer, banking services, making transactions, national bank.
Title: CONSTRAINTS HINDERING OPERATION OF FINANCIAL SERVICES ON BANKING AGENCY IN KENYA: A CASE OF NATIONAL BANK OF KENYA LIMITED
Author: Nkatha Frida kirigia, Daniel Kamau, Dr. Kepha Ombui
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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