Abstract:
This research paper aims to identifying factors which influence the adoption of agent banking by
cooperative bank of oromia. Clear understanding of these factors will enable agent banking
service providers to develop suitable marketing strategies, business models, processes, and pilot
projects. To address the research objective 111 sampled customers were selected. Purposive
sampling methods were used. Questioners were distributed to 111 different managers, from
which 103 sample respondents replied appropriately to the questionnaire. Data gathered were
analyzed based on these 103 responses. The quantitative data were analyzed with the use of
SPSS version 20 software using statistical tools of frequency, percentage, mean score and
standard deviation and supported by qualitative analysis.
The study revealed the following major factors in adopting agency banking in cooperative bank
of oromia; Security factors(perceived risk), from support factor, Lack of sufficient government
support, from Compatibility factors, agency compatibility with the bank's existing service
offering, lack of trust and lack of financial literacy are major factors.
The study recommended that adoption can be increased by developing better functions in terms
of flexibility, security and accessibility features to enhance consumers’ confidence to adopt
agency banking services and users’ knowledge, ability and skills are needed to use the new
information technology. Available support structures and strong top management support
becomes an essential measure to encourage agency banking adoption.
