Agency banking strategy and customer service:The case of Kenya Commercial Bank Agents

Abstract

A study was carried out to establish the effect of agency banking strategy on customer service in Kenya commercial bank limited. The study had three objectives to achieve: To establish the various services offered by KCB "Mtaani" agents; to find out the relationship between agency banking strategy and customer service and to establish the strategies that can be used by KCB to enhance customer service. The research adopted a descriptive design. Data was collected from KCB "Mtaani" agents operating within Nairobi and its environs through semi-structured questionnaires. The agents were sampled through purposeful or judgmental sampling due to the nature of their dispersion. The data collected was analyzed using means and frequencies and correlations. The findings were presented in tables. It was established that agents perform several functions or activities on behalf of the bank. The functions include accepting cash deposits, effecting cash withdrawals, opening accounts for new customers and to some little extent issuing interim bank statements. There are some services that are however not common with the agents such as foreign currency transactions, issuing cheque books to customers and processing of loan applications. The study also established that there is a strong link between the use of agency banking and customer service improvement. The respondents confirmed that the agents have greatly improved the level of customer service in Kenya commercial bank limited. The study recommended that KCB should look for ways of motivating the agents such as through the use of performance based bonuses. This will motivate them to work better thus improving customer service. It was recommended that this study can be replicated later to establish whether there are any changes in agency banking and customer service in banking.