The agency banking model is a function of certain

commercial banks A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with corp ...

Kenya ) , national_anthem = " Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi ...

. The activity is regulated by the

Central Bank of Kenya The Central Bank of Kenya (CBK) ( sw, Banki Kuu ya Kenya) is the monetary authority of Kenya. Its head office is located in Nairobi. CBK was founded by in 1966 after the dissolution of East African Currency Board (EACB). Dr. Patrick Ngugi Njoroge ...

, which allows banks to contract third-party retail networks as a

Banking agent A banking agent is a retail or postal outlet contracted by a financial institution or a mobile network operator to process clients’ transactions. Rather than a branch teller, it is the owner or an employee of the retail outlet who conducts the t ...

. Upon successful application, vetting, and approval, these agents are authorized to offer selected products and services on behalf of the bank.

Definition

banking agent A banking agent is a retail or postal outlet contracted by a financial institution or a mobile network operator to process clients’ transactions. Rather than a branch teller, it is the owner or an employee of the retail outlet who conducts the t ...

in Kenya is a commercial entity that has been contracted by a commercial bank and approved by the Central Bank of Kenya to provide specific services on behalf of the bank. This entity is equipped with the skills necessary to provide basic banking services according to standards set by the Bank. This allows the

entity to access financial products and services at a location nearest to the customer, thus breaking down certain barriers to financial inclusion such as cost and accessibility.

Approved financial activities

Activities that a

can engage in are determined by the contracting bank after assessment of the applying entity. Some of these include: * Cash withdrawal * Bill payment * Cash deposits * Funds transfer * Balance inquiry * Document collection for debit and credit cards, loan applications, and account opening * Collecting bank correspondence and mail *

Mobile banking Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses ...

services Agency banking transactions are denominated in Kenyan shillings.

Prohibited activities

* Execute transactions during network and/or communication failure. * Charge customers any fees * Carry out agency banking business when an agent is no longer contracted by a bank * Offer its own banking services apart from the sponsoring bank * Perform anti-money laundering services * Conduct foreign exchange transactions * Deposit checks or engage in encashing * Provision cash advances and loans * Subcontract to any business to run its agency banking When an agency continues to perform prohibited activities, their contract may be terminated.

References

{{Reflist Banking in Kenya