Saturday, July 31

How Does Agent Banking Create a Win-Win Situation for all?

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What Is Agent Banking?

Agent Banking, which is also known as branchless banking, is a financial inclusion service that allows traditional banks to extend their network of branches and services in a cost-efficient manner through authorized agents. Agent Banking offers financial services to unbanked and underserved communities through a mobile application. The services can all be conducted on low-cost mobile devices and all transactions can be conducted online.

Benefits of Agent Banking

  • Benefits to Agents:

Agent Banking solution allows agents to offer the full range of transactions to their customers, including cash deposits and withdrawals, loan repayments, bill payments or mobile top-up. That solution also allows agents to provide their customers with a complete range of services, including access to mini statements and balance inquiries, customer PIN change, cash withdrawal, issue a card or print a receipt. Agents are able to onboard new customers, perform KYC by capturing the customer ID and customer photo and submit it for verification and even open accounts on their behalf. Their services are rewarded with commissions whenever they perform transactions on behalf of the bank. Offering these additional services can help these agents grow their own business.

  • Benefits to Banks:

By using that solution, not only can banks reduce the cost of their branch network, but banks can also expand the products offered to customers remotely. That solution offers a significant cost reduction, eliminating the need to establish a physical presence and lowering the cost of handling low-value transactions. Agent Banking solution increases accessibility to banks’ services especially in the rural areas through increased outreach.

  • Benefits to Customers:

Agent Banking solution enhances the convenience and outreach of affordable financial services to an underserved segment of the population in a very cost-efficient manner. By bringing banking to the customer, these customers can enjoy better and safer access to financial products. Agent Banking provides top-notch security. Agent banking also provides users with an enhanced customer experience. Agent banking has brought banks to the doorsteps of users. Now, instead of travelling and waiting at the bank branch for hours, the customers can simply visit their agents which are located at their proximity. Agent Banking solution provides customers with flexible working hours.

Agent Banking: The Future of Banking

As we have seen above, Agent Banking is a win-win situation for everyone whereby the agents win by being able to sell a greater variety of financial products and services on behalf of the bank to customers in unbanked and underserved communities; the customers win by getting easy access to financial services; the banks win by being able to increase their market share and reduce the cost of their branch network. Therefore, Agency Banking will play an important role in the coming years for financial inclusion.


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