THE ADOPTION OF AGENT BANKING: THROUGH THE LENS OF COMMERCIAL BANK CLIENTS

Abstract

Agent banking has played a crucial role in promoting financial inclusion in Bangladesh, particularly during the COVID-19 pandemic when accessing banking services in rural areas became challenging. This study aims to explore the factors and dimensions that influence agents' intention towards agent banking services post-pandemic, drawing from the Technology Acceptance Model, SERVQUAL model, and perceived risk theory. A survey was conducted using a structured questionnaire, gathering data from 300 current agents recruited by commercial banks during the fiscal year 2021-2022 and residing in major divisions of Bangladesh. The study findings indicate the significant roles of perceived risk dimensions, service quality factors, and technological dimensions in agent banking services in Bangladesh. Specifically, dimensions of perceived risk were identified as having a significant negative influence on agents' intention towards agent banking adoption. These findings highlight the risk factors that hinder people's intention to adopt agent banking services and emphasize the importance of service quality factors in promoting adoption behavior. Policymakers, such as the central bank of Bangladesh and operating banks, can leverage these study findings to develop effective strategies for maximizing the adoption behavior of agent banking services.