EFFECT OF FINANCIAL INCLUSION ON FINANCIAL PERFORMANCE OF EQUITY AGENCY BANKING BUSINESS IN SIAYA TOWN
Abstract
Agency banking has proved to be a successful model for most marginalized people as it promotes accessibility of affordable banking services which has led to development of any economy. The main objective of this study was to determine the factors influencing financial performance of equity agency banking business in Siaya Town. The specific objectives involved determination of the extent to which financial inclusion affected financial performance of equity agency banking business in Siaya Town. The study applied descriptive survey research design with a target population of 83 agent bankers; census sampling technique was used in conjunction with a structured questionnaire to select sample size and collection of data. Descriptive and inferential statistics was used to analyze data. The unstandardized regression coefficient value of financial inclusion was 0.456 and significance level of p<.001. This indicated that a unit change in financial inclusion would result to significant change in performance by 0.456. The study concluded that financial inclusion positively affected financial performance of Equity agency banking business. The study recommended that Equity bank together with other commercial banks should encourage their customers to fully embrace agency banking particularly for services such as cash deposits, cash withdrawals and account opening which can be achieved through creating awareness in market segments as this will enhance performance and collection of information to fit the needs of the customers.
Key words: Agency Banking, Financial Inclusion, Financial performance, Equity Agency Banking
CITATION: Ojwang, A. O.,& Otinga, H. N. (2019). Effect of financial inclusion on financial performance of equity agency banking business in Siaya town. The Strategic Journal of Business & Change Management, 6 (2), 55 – 65.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1099
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