Introduction to agency banking: A new guide for agents

With modern technology, third-party agents have become an integral part of the digital financial service system.

Agents are now channels of choice for many customers due to the convenience, easy access and nearness to them.

What is Agency Banking really all about?

It’s a strategy employed by financial institutions to expand their points of service through a network of 3rd party agents. With the use of agency banking softwares, mobile devices with biometrics, these financial institutions enable agents to offer banking services to customers on their behalf such as cash withdrawal/deposit, digital loans, payment of bills etc.

Why Agency Banking?

Over 200 million MSMEs around the world lack access to basic financial services. Most either do not meet the needs of the populace in terms of proximity, convenience or affordability; financial knowledge-ability is still quite low especially amongst low income areas. There aren’t many branches and ATM points are congested.

Here are some highlighted benefits of banking agents:

  • Financial institutions with banking agents can now expand while running cost effectively.
  • There is a better customer experience. With agency banking customers can now visit the nearest agent at their own time and convenience to perform transactions and even pay their bills with no formal ID just biometrics. Banking agents have become a go-to for financial services.
  • Agents have become more trusted than some bank branches, because of the level of interaction and familiarity with local agents. After consistent use, customers now feel safe and secure to use these agents for their financial transactions.
  • Agency banking has also helped to eradicate rate of unemployment in the grassroots.

Thanks to technology and digitalization, customers can now get new financial services and quick response to their financial needs gotten across to them through these banking agent networks via mobile devices.

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