Abstract

This research project was on assessing the effects of agency banking on accessibility to
financial services in commercial banks in the Northern Province of Rwanda. The study
adopted a descriptive research design. The population was 555 agents under which sample
size was 233 people found using the Yamae formula. The study used a stratified and simple
random sampling method. Also, different research instruments of data collection were used
which include: journals, articles, document analysis and questionnaires. The reliability of
the study was tested by carrying out pilot research and found that Cronbach's Alpha of .831.
The data was analyzed using SPSS version 21 and data was presented using tables,
percentages, means, and standard deviations. To analyze the relationship between two
variables, Pearson Chi-Square and Pearson correlation were used to come up with
comprehensive results. It was clear from the study that strategic responses to the
implementation of agency banking as a competitive strategy in enhancing customers’ access
to financial services included the provision of high-quality customer service, enhancing the
operational structure and improving the brand image. The study established that operational
structure, brand image and financial services awareness among the rural population are
positively correlated (r = 0.805) with access to financial services. Access to financial services
was greatly enhanced by strategically increasing the proximity of agency banking services,
increasing the number of services that could be offered through agency banking and
increasing awareness among the population on financial services available at agency banking
outlets.
Keywords: Agency banking, Financial Services, Commercial banks, Customers, Rural
populatio