Banks are finally realizing the benefits of agent banking, with NIC and Family Bank being the latest entrant in the agent banking sector.
Agent banking is a form of business conducted by an agent on behalf of a bank. Agent banking came into place following the amendment of the Banking Act of 2009 to enable the use of third party agents by banks.
Agent banking has indeed revolutionized the banking sector by bringing your bank to your door step. They have led to increase in profit margins for most banks and have been a convenience to customers who no longer have to visit a bank branch for simple transactions. While this is the case, CapitalFM Business yesterday highlighted the failure of agencies to de-congest Kenya’s banking halls, with long queues still being the order of the day in banking halls. It therefore seems like Kenyans are yet to fully embrace the culture of agent banking.
Below is a table summary of the various services offered by different bank agents
