News Column

More Customers Are Using Banking Agents

June 9, 2014

Mercy Gakii

Customer deposits through bank agents surged by 48 per cent to Sh18.5 million last year from Sh12.5 million in 2012, according to the latest Central Bank's supervision report.

This increased the total value of transactions through agents in 2013 to Sh236.2 billion from Sh152.1 billion in the previous year, rising by 55.3 per cent.

CBK attributes the increase to more banks that approved the agency model, 13 in 2013, which saw the number of bank agents rise to 23,477 in December, a 43.7 per cent jump.

The number of transactions increased by 40.5 per cent to 42.06 million transactions from 29.94 million transactions recorded in 2012.

Agents helped customers to enquire account balances, which increased by 21 per cent, withdrawal cash (up by 40 per cent), collect application forms to open new accounts and to apply for bank cards.

Curiously however, bills paid via agency outlets declined by 20 per cent over the period to 113,429 compared to 142,046 in the previous year. The value of transactions nonetheless increased to Sh251.2 million from Sh238.7 million in 2012.

The agency model is proving popular with many Kenyans as it increases the banking hours long after formal bank branches close and within reach in neighbourhoods.

It has also helped banks cut costs of brick and mortar expansion and hiring new staff.

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Source: AllAfrica

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