| Abstract: | There is an increasing need to promote technological and institutional innovation as a means to expand financial system access and usage, including addressing infrastructure weaknesses and empowering business enterprises by developing financial literacy and financial capability programs to bring all people on board and all to participate in economic development of a country, perhaps agent banking will offer a solution to slow pace of individuals enterprise development especially from the rural areas. The purpose of this research is to assess agent banking practice challenges in United Bann S.C of Ethiopia using primary data collected through non probability purposive sampling technique. The type of data used for the study includes qualitative and quantitative data. The source of data is through the use of questionnaires. Data collected from 71 employees who are involved in the duty of agent banking. The researcher identified some of the challenges hindering the well functioning of agent banking and from these risk, insecurity, power and network interruption, less attractive commission, lack of awareness and trust by the society, maximum transaction deposit and transaction limit, training problem are the major ones in delivering agent banking service. Generally, it pointed out major challenges related to risk, infrastructure, commission, legal and regulatory, society and technology related issues in delivering agent banking service. As a result, the researcher obtained that liquidity risk, security risk, power and network interruption, unattractive commission, maximum deposit and transaction limit, less awareness, trust and knowledge, expansion of ATM, POS, internet and mobile banking are the current challenges in delivering agent banking in United Bank share company. |
