Assessing agency banking performance in Uganda in Amalgamated Banks of South Africa (ABSA) bank Uganda Limited

Abstract

The researcher analyzed agency banking performance in Uganda in Amalgamated Banks Of South Africa (Absa) Bank Uganda Limited. The study was guided by three objectives to establish the factors shaping agency banking in Uganda, to evaluate the challenges affecting agency banking performance for Absa Bank in Uganda and to explore the modalities of improving agency Banking performance for Absa in Uganda. The researcher adopted a descriptive research design and employed a quantitative approach. Questionnaires were the main tool used in data collection, focusing on gathering numerical data. The population for this study consisted of staff at Absa Bank Uganda Limited. The study found that several factors influence agency banking performance for Absa Bank in Uganda, including regulatory policies, customer demand, security, consumer education, and customer feedback. It highlighted the importance of regulatory guidelines from the Central Bank of Uganda in shaping agency banking, with most respondents agreeing on their impact. Customer demand, driven by financial needs and preferences, was also crucial, along with the need for robust security measures to build trust. Furthermore, raising awareness about agency banking services and educating consumers was seen as essential. The study also emphasized the challenges faced by Absa Bank, including regulatory compliance, customer education, and managing feedback, with many respondents agreeing that addressing these issues could improve agency banking performance in Uganda. The study recommends that for the successful growth of agency banking in Uganda, institutions should focus on ensuring regulatory compliance, investing in reliable technology infrastructure, and providing comprehensive agent training and ongoing support. It highlights the importance of adapting strategies to local market conditions, advocating for supportive regulatory frameworks, and enhancing user experience through modern technology. Regular assessments should be conducted to adjust strategies in response to changing circumstances, ensuring continued success.