Assessment of the Effect of Agency Banking on Commercial Banks’ Performance in Sokoto Metropolis, Nigeria

The study assessed the effect of agency banking on commercial banks’ performance in Sokoto Metropolis. A survey design was used to carry out the research. The study used a judgmental sampling technique and simple random sampling to pick five respondents from the senior management staff, five employees from operational level staff, and twelve agents for each of the five selected commercial banks. Thus, 110 respondents were selected from five selected banks (Guaranty Trust Bank (GTB), Access Bank Plc, Zenith Bank Plc, First Bank of Nigeria (FBN), and Diamond Bank Plc). A questionnaire designed was used to collect data on a four-Likert scale rating. Descriptive statistics were used in form of percentages, mean, tables, and frequency counts, and inferential statistics inform the t-test to analyze the data. Results of the analysis indicate that agency banking has led to the accessibility of financial services to many customers, particularly in non-banking rural areas which has improved banks’ performance. It was concluded that access to effective financial service delivery to customers is a prerequisite to banks’ performance which can only be achieved by improving agency banking networks, especially in non-banking areas. The study recommends the need for banks’ management to further improve customers’ accessibility to effective financial service delivery.