Human Capital and its Influence on Performance of Agency Banking in Commercial Banks in Kenya.

Abstract

Agency banking has in the recent past gained momentum among many commercial banks in Kenya. This study sought to establish the influence of strategic drivers on the performance of agency banking in commercial banks in Kenya. Descriptive survey research design was used with a target population of 18 commercial banks in Kenya licensed by the Central Bank of Kenya to operate agency banking. The branch managers, ICT managers, operations managers, human resource managers and customer relations managers were the key targets respondents in the study. Primary and secondary data were collected using questionnaires and checklist guide respectively. Inferential analysis was carried out to establish the relationship between the independent variables and the dependent variable. The study established that Human Capital had a positive significant influence on the performance of agency banking among the commercial banks in Kenya. Through upholding education, training and experience, the skills to deal with the emerging issues in agency banking are enhanced and this ensures the effective running of the mode of banking towards success. The study concluded that the training on those operating agency banking is essential in steering the effective service deliver and customer service in order to enhance the performance of agency banking. The study concluded that human capital was essential in steering the performance of agency banking thus recommending that the commercial banks through the management ought to uphold these strategic drivers in order to enhance the performance of agency banking.

Keywords: Human Capital, Agency Banking, Commercial Banks