Challenges of Implementing Agency Banking as an Expansion Strategy at Kenya Commercial Bank Group Ltd

Abstract

This study set out to explore the challenges of implementing Agency Banking as an expansion strategy at Kenya Commercial Bank Group Ltd. Kenya Commercial Bank is one among 42 other commercial banks in Kenya that form a subset in the set of Financial Institutions. The emphasis of this study was laid on how the structure, leadership, processes and culture affected the implementation of Agency Banking as an expansion strategy in KCB. It also shows how the preceding factors favored or challenged the implementation. The project used the approach of a case study to have an in-depth analysis of how the various factors attributed to strategy, challenged its implementation. Primary data was collected through the use of an interview guide and data collected analyzed through content analysis. Secondary data was collected through the use of circulars, staff magazines emails and staff notes on training for Agency Banking. Key findings of the study revealed that KCB underwent a number of challenges while implementing Agency Banking as an expansion strategy. The study details the use of communication, leadership, training and recognition as factors that helped mitigate the influence of challenges to implementation. These are detailed to show specifically how as key factors, KCB used them to prepare and train the staff and other key stakeholders that were deemed important for the implementation. The importance and dependence of other organizations that would give support to Kenya Commercial Bank Group Ltd are noted in the study and how they too influenced Agency Banking Implementation. The study also presents the competitive environment and how other competing financial institutions played a part in shaping key decisions that would help in implementation. Key competitors are depicted in this study not only as other commercial banks and financial Institutions but also Mobile Phone providers who took a lead in the introduction of mobile money. The study also found out that changes to structure and culture were inevitable for the smooth implementation of Agency Banking. The study concluded that Agency banking faced a number of challenges during its implementation stage at KCB and it recommends that a similar study be carried out to cover other financial institutions that have embraced Agency Banking as a growth strategy. This will help develop policies that will govern and streamline Agency Banking as the same is developing within the economy.