IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 7 NO. 1 2021

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Agent Banking Channels and the Nigerian Banks’ Performance: An Empirical Discourse

Oboro Oghenero Godday & Ukolobi Israel

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Abstract

Scholars have argued that for bank to achieve sustainable bank returns, enjoy economy of scale and scope, they must embrace agent banking. However, scholars have questioned if truly agent banking correlates either positively or negatively with bank performance since agent exhibit some form of neglect. Succinctly, the present study investigated the influence of agent banking channels on bank performance in Nigeria with central focus on three (3) Metropolitan Cities of Delta State: Asaba, Ozoro and Warri. Specifically, four hypotheses were formulated based on the four regressors that were used to proxy agent banking which are: agent branch network expansion, agent account opening, agent withdrawal transactions, and agent deposits transactions while bank turnover/income was used to measure bank performance. The study adopted the multivariate analysis via Statistical Package for Social Sciences version 23.0. Although, 400 research questionnaires were initially distributed across three (3) metropolitan cities of Delta State, only 370 questionnaires accounting for 92.5% were returned and used for the study. Accordingly, findings emanating from the study reported that agent branch network expansion, agent account opening, agent withdrawal transactions, and agent deposits transactions contribute meaningfully to bank profitability. Hence, we recommend that, for Nigerian banks earn more rupees, they must invest in innovative banking strategies and that they must have to increase their customer outlets.

keywords:

Appraisal, Agent Banking Channels, Bank Performance

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