The Impact of Agency banking on Customer satisfaction

Abstract

This study sought to investigate Agency banking and its effects on Customer satisfaction. The banking sector in Uganda has experienced turbulent times following the collapse of many banks in the 1980s. In order to minimize their operational costs, commercial banks have adopted Agency banking including automatic teller machines, mobile banking and internet banking where customer can access financial products in outlets near them. It can make basic financial services more accessible by minimizing time and distance to the nearest commercial bank branches as well as reducing the banks own overheads and transaction related costs. The study was intended to establish the impact of Agency banking on customer satisfaction specifically on the Stanbic Bank Uganda agents in Kampala Central. The objectives of this study were to determine the effect of Agency Banking on customer satisfaction, to identify the relationship between Agency banking and customer satisfaction, to identify the challenges of Agency banking on customer satisfaction and to identify the solutions to the challenges on Agency banking. The study applied a descriptive research design. The target population included 4 Stanbic bank Uganda Agents in Kampala with 25 respondents. The study used secondary data from books, e books, website, unpublished research papers. The study recommends the use of Agency banking for bank financial services because it leads to customer satisfaction