Influence of Start Up Capital on Operational Performance of Individual Bank Agents In Kenya
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 5
Abstract
Agency banking is a phenomenon in which non-banking entities offer financial products and services. Though the market for agency banking in Kenya is growing and unsaturated, existing disparities between growth of agencies and the growth of their transactions across the country hints at operational challenges. This study aimed at determining how structure of start-up capital influences operational performance of individual bank agents in Kenya. This study was grounded on agency theory and stewardship. It adopted a descriptive survey design and sampled 86 individual bank agents. A structured questionnaire that was tested through a pilot study was used to collect primary data. Descriptive and Quantitative data analysis were carried out.Descriptive data analysis involved frequency, percentage tables and mean scores. In quantitative data analysis, correlation, regression and ANOVA analysis were done. A strong positive correlation of 0.752 exists between structure of start-up capital and operational performance. Structure of start capital explains 56.6% of the variations in operational performance of the individual bank agents and 43.4% can be explained by other facts that are not in the model. The ANOVA results indicated that the overall model can predict the operational performance of individual bank agents. Therefore, the study rejected the null hypothesis that the structure of start-up capital cannot statistically significantly be used to predict the operational performance of individual bank agents in Kenya.This study is of benefit to banks and potential business people through insight obtained into issues affecting agency banking. It is also of benefit to students, researchers and academicians interested in the issue of agency banking in Kenya. This study recommends that bank agency should be well spaced from one another but far away from the parent bank. The bank agents should be located away from other competing money transfer services outlets.
Authors and Affiliations
Jesee M. Mugo, James N. Kung‟u, David M. Gichuhi
Keywords
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- EP ID EP414923
- DOI 10.9790/5933-0905021623.
- Views 185
- Downloads 0
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