Browsing by Author "Okello, Richard"

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    Agency banking and profitability of commercial banks a case of centenary bank Soroti city branch, Uganda
    (Muni University, 2025-10-29) Okello, Richard
    The current study examined the impact of agency banking on the profitability of Centenary Bank, Soroti Branch, Uganda. The study aimed to investigate the relationship between accessibility and profitability, analyze the effect of third-party agents on profitability, ascertain the contribution of cost-effectiveness to profitability, and determine the moderating influence of regulatory compliance on the relationship between agency banking and profitability. A descriptive and correlational research design was adopted. Data were collected using structured questionnaires administered to 136 respondents, including bank staff, customers, and third-party agents. The data were analyzed using descriptive and inferential statistical techniques, including correlation and regression analysis. The findings revealed that accessibility had a strong positive correlation with profitability (r = 0.78, p < 0.05), while third-party agents significantly contributed to revenue diversification (β = 0.65, p < 0.05). Cost-effectiveness enhanced customer base expansion, resulting in a 25% increase in transaction volumes over the past year. Furthermore, regulatory compliance was found to moderate the relationship between agency banking and profitability, ensuring risk mitigation and operational stability. The study concluded that agency banking significantly enhances profitability through improved accessibility, reduced operational costs, and expanded customer outreach. However, the study was limited to a single branch, which may restrict the generalizability of the findings. The research contributes to the understanding of agency banking’s role in promoting profitability and financial inclusion and provides practical insights for banks, policymakers, and financial regulators seeking to strengthen agency banking operations.