Agency banking in Uganda: a case of Equity Bank Uganda; opportunities and challenges, a case of Equity Bank, Wandegeya Branch.

Abstract

This study examined the opportunities and challenges of Agency banking in reference to Equity Bank Uganda Limited. The study was premised on three objectives; to examine the opportunities provided by agency banking to customers of Equity Bank Uganda Limited, to assess the challenges faced by the banking agents at Equity Bank Uganda Limited, and to recommend strategies that can improve Agency Banking at Equity Bank Uganda Limited. The study employed a cross-sectional and descriptive research with a mixed study approach which involved collecting numerical data from 70 customers and interviewing 8 key informants. Quantitative Data was analyzed using the statistical package for social science (SSPS Version 27) while qualitative Data was analyzed using Atlas ti. The study found that the agency banking reduces queuing for branch services, makes banking activities easier, increases accessibility, enhances electronic transactions, contributes to financial inclusion, and encourages savings. However, challenges include uncertainties about reliability, low internet access, security concerns, network instability, technical issues, and lack of legal frameworks. Customers also disagree with the high fees and charges associated with agency banking services. To improve adoption, the study recommends collaborating with local businesses and community organizations, providing awareness campaigns, robust security measures, increasing outlets, offering incentives, user-friendly interfaces, dedicated customer support services, and lowering fees. These strategies are effective in enhancing customer experience and satisfaction. Key words; Agent Banking, Relevance, opportunities, challenges