Mobile Money & Agent Banking: The Future Looks Promising

Banking According to a World Bank report, about two billions of billion adults throughout the worldwide do not have a basic bank account. There are schemes introduced by the Government worldwide that focus on accelerating financial inclusion in order to eradicate poverty and provide economic stability. However, a 60 percent of unbanked adults who are citing the issue of lack of accessibility of reasonable banking services as a key reason for the absence of a bank account. They cite the issue of lack of facilities and banking services in rural areas, documentation processes, and tedious incorporation as other prominent barriers.


Now, before going any further, let us clarify the term financial inclusion, since it is vital to have a proper understanding of the popular concept in the field of banking.

What is Financial Inclusion?

Financial inclusion is basically an attempt to bring together all people around the world, regardless of their income level in the formal economy. In this case, it is ensured that no individual; no matter how poor, it is excluded from this ecosystem.

In urban areas, banks extend their reach customers by opening several branches and ATMs; However to open a bank branch in rural areas, high CAPEX / OPEX required – but certainly the branch does not generate sufficient return on investment (ROI). This is the main reason why banks have failed to reach rural customers. Therefore, for a rural customer, it becomes difficult to operate mobile banking application and again access to banking services on mobile phones.

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What is Agent Banking?

Banking institutions are you doing giant moves to reinvent themselves in a way that allows them to operate in all places, and this concept is known as Banking Agency also known as Agent bank. This is a very cozy concept because of the proximity to banking services; fast response time and customer waited who have longed for decades – especially in rural areas, like small towns and even villages.

Banking agency is basically a new regulation authorizing financial institutions to strengthen a banking agent for the provision of special financial and banking services on behalf of the bank, outside of the conventional routes of ancient halls banking with bank managers, cashiers and ATMs automatic. Although it is very similar to a mobile money agent, but right now, you are depositing and withdrawing cash from your bank account instead of the mobile money account on your mobile phone.

How will Agent Banking function?

Well, it will not be a striking similarity in the operation of mobile money and agent banking. In the case of banking agent, here banking agents will be trained and will be used with a POS terminal or a cellular phone. They will then be equipped with the necessary skills to provide banking services in accordance with standards established by the bank, helping customers to access affordable and fast banking.

Typically, these agents provide services such as account opening, transfer funds, pay bills, cash deposits, cash withdrawals; Collecting documents, balance inquiry, bill payments, Mini Statement, or any other service that is permitted by the Banking Association.

How Banks can useful from adopting Agent Banking?

There are countless benefits that come with the adoption of banking agent, such as:

  • Attaches segment unbanked in the ecosystem of financial inclusion and therefore helps in expanding the customer base, which in turn leads to huge return.
  • Agent bank is also expanding efficient network of agents to reach more and more people as and when necessary.
  • It allows banks to reduce time to market of new projects and services to its customer base in a small geography.
  • It promotes a culture cashless and offers a range of products and payment facilities through an agent of a single bank.
  • This helps in streamlining business processes and improves efficiency. Agent banking is a means of providing banking services to a wider customer base that also service costs low.

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High Time for Banks to Create an Efficient Agents Network

What is required by banks it is associated with techies or IT service providers in order to create their own network of banking agents? This way you would be able to successfully face banking services to places either bank branch fails.

There are a number of mobile financial services providers that are currently doing the job of creating a branchless bank, where potential customers can easily reach. It is advisable to maintain simple infrastructure with a team of developers, branch managers and bank executives and an agent for the banking needs.

What Sort Of Setup is Needed Here?

In order to create a system of banking agent, one would require an android smart device functionality biometric capture and along with that a solution robust agent bank that is created with the help of a provider of financial mobile service or IT service provider.

In the words of expert Fintech, Sameer Dashputre, bank agent defined today, and is the best way to catalyze financial inclusion by delivering profitability of financial services through a low-cost transfer. He says: “Recently we conclude this project in Africa, where we put machine the position of the state of the art in every room of the agent, which makes it easier for the customer on board customers and also capture all the information a cracking behavior. After KYC process is done, customers can easily deposit, withdraw and transfer money from their accounts. There would be no need to travel to the bank branch in the city, as customers can simply visit the agent bank to enjoy your specific banking services when needed “cities.