An Investigation of the Effectiveness of Agency Banking in Promoting Financial Inclusion: A Case Study of UBA, Borno State.
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study:
Agency banking has emerged as a critical innovation in Nigeria’s financial landscape, aimed at extending banking services to underserved regions. In Borno State, where conventional banking infrastructure is often inadequate, UBA’s agency banking model offers a practical solution to the challenges of financial inclusion. Agency banking leverages local agents to deliver basic banking services such as deposits, withdrawals, and bill payments, effectively bridging the gap between traditional banks and remote communities (Balogun, 2023). By partnering with local businesses and community members, UBA is able to establish a network of banking correspondents who operate beyond the physical confines of bank branches. This decentralized approach not only reduces operational costs but also enhances the accessibility of banking services in regions affected by infrastructural deficits and socio-economic challenges (Ibrahim, 2024).
The effectiveness of agency banking in promoting financial inclusion can be observed in its ability to reach populations that are often neglected by conventional banking systems. In Borno State, where conflict and underdevelopment have limited access to financial services, agency banking represents a transformative initiative that fosters economic participation and empowerment. It facilitates the integration of previously marginalized groups into the formal financial system, thereby contributing to broader socio-economic development goals. However, the success of this model depends on several factors, including the reliability of local agents, the robustness of technological platforms, and the regulatory environment governing agent operations (Okoro, 2023). Furthermore, challenges such as agent fraud, network connectivity issues, and limited financial literacy among both agents and customers can undermine the potential benefits of agency banking. This study seeks to critically assess the effectiveness of UBA’s agency banking model in Borno State, examining the operational dynamics, challenges, and opportunities associated with this innovative approach (Afolabi, 2025).
Statement of the Problem:
Despite the innovative nature of agency banking, significant challenges continue to impede its effectiveness in promoting financial inclusion in Borno State. One of the primary issues is the reliability and integrity of local agents who, while pivotal to the model, sometimes face challenges related to training, supervision, and technological competency. Inconsistent service quality and occasional instances of fraud have raised concerns among customers, thereby affecting the overall trust in the agency banking model. Additionally, poor network connectivity and infrastructural deficiencies in remote areas further exacerbate these challenges, leading to frequent service interruptions and reduced efficiency (Chukwu, 2023).
Furthermore, the low level of financial literacy among the target population remains a critical barrier. Many potential users are either unaware of the benefits of agency banking or are intimidated by the perceived complexity of digital transactions. This situation is compounded by the lack of continuous support and education initiatives by the banks, which limits the effective utilization of the services provided. Regulatory challenges also play a role, as inconsistent guidelines and oversight can lead to operational ambiguities and risk management issues. Consequently, despite the promising potential of agency banking to foster financial inclusion, these challenges create a gap between the intended and actual impact of the model. This study aims to identify the key operational and systemic issues that hinder the effectiveness of agency banking in Borno State and to propose practical recommendations to enhance its performance (Olatunji, 2024).
Objectives of the Study:
• To assess the impact of UBA’s agency banking on financial inclusion in Borno State.
• To identify the key operational and infrastructural challenges affecting agency banking.
• To recommend strategies to improve the efficiency and reliability of agency banking services.
Research Questions:
• How effective is UBA’s agency banking model in promoting financial inclusion in Borno State?
• What are the primary challenges faced by local agents and customers in agency banking?
• What measures can be implemented to overcome these challenges and enhance service delivery?
Research Hypotheses:
• H₁: UBA’s agency banking significantly increases access to financial services in Borno State.
• H₂: Operational challenges and low financial literacy negatively affect the efficiency of agency banking.
• H₃: Enhanced training and regulatory oversight will improve the reliability of agency banking services.
Scope and Limitations of the Study:
This study focuses on UBA’s agency banking operations in Borno State. Data will be collected from agents, customers, and bank records. Limitations include potential biases in responses, variability in service quality across different regions, and the evolving nature of technological infrastructure.
Definitions of Terms:
• Agency Banking: A banking model that utilizes local agents to deliver financial services on behalf of a bank.
• Financial Inclusion: Ensuring that all individuals have access to affordable and appropriate financial products and services.
• Infrastructural Deficiencies: Limitations in physical and digital infrastructure that hinder service delivery.
Related Project Materials
THE ROLE OF COORPORATIVE SOCIETIES AND THE NIGERIA ECONOMY. (A case study of cooperative societies)
ABSTRACT
This study was carried out to examine the role of cooperative societies and the Nigeria economy using coo...
THE INFLUENCE OF TEACHERS INSTRUCTIONAL METHODS ON STUDENTS ATTITUDE AND ACADEMIC ACHIEVEMENT IN SOCIAL STUDIES EDUCATION IN JOS NORTH LGA, PLATEAU STATE
BACKGROUND OF THE STUDY
Education is the most powerful agent of social and personal development...
An assessment of the archaeological significance of sacred forests in Ijebu East Local Government Area, Ogun State
Background of the Study
Sacred forests in Ijebu East Local Government Area, Ogun State, are repositories of both natural b...
An evaluation of translation accuracy in Yoruba language versions of international literature
Background of the study
This study evaluates the translation accuracy of Yoruba language versions of international literat...
The effect of geopolitical pressures on the operations of traditional rulers in Potiskum Local Government Area, Yobe State
Background of the Study
In Potiskum Local Government Area (LGA), located in Yobe State, Nigeria, traditional rulers play an essential role i...
THE ROLE OF FIXED INCOME SECURITIES IN INVESTMENT PORTFOLIOS
ABSTRACT
THE ROLE OF FIXED INCOME SECURITIES IN INVESTMENT PORTFOLIOS
This research investigates the role of fixed income secur...
The Effect of Vitamin A Supplementation on Childhood Immunity in Kaduna State
Background of the Study
Vitamin A is an essential nutrient that plays a pivotal role in maintaining i...
An assessment of the effectiveness of online learning platforms in teaching STEM subjects in Dutse LGA, Jigawa State
Background of the Study
Online learning platforms have become increasingly prevalent in the delivery of education, es...
A critical analysis of social media advertising on brand recognition: A study of a fashion label in Abuja.
Background of the Study
Social media advertising has emerged as a powerful tool for enhancing brand recognition, particu...
An assessment of forensic anthropology in cases of human remains found in rivers and coastal areas in Opobo/Nkoro Local Government Area, Rivers State
Background of the Study
In coastal and riverine environments, forensic anthropology plays a critical role in investigating...
