4 major benefits of Agency banking
Agency Banking refers to a type of branchless banking, which comes with the benefits of risk management, product availability, improving financial inclusion and ensuring a wider customer base. It is a method for traditional banks to extend the network of their branches in a cost-effective way, via authorized agents in the rural populations.
Agent-based operations
Agency Banking operates with the help of agents who conduct transactions on behalf of the unbanked. Banking agents can have a digital wallet or stored value account on an online platform, and this platform can apply the set business rules to the transactions started by the agents. Bank customers can have their accounts on a digital wallet or the core banking system. Agents can carry out transactions on such accounts on customer’s behalf. The business rules will be applied by the host system to the accounts of customers.
Easy platform
An Agency Banking platform lets agents put in, and withdraw money from their digital wallets with various business rules. The service can be used by agents for fund transfer between stored value accounts, or to the bank account of customers from their stored value account. Agent banking delivers financial services to the underserved and unbanked populations, employing the use of mobile phones, POS (point-of–sale) terminal, card readers and other technology for processing of real time transactions.
Support for various transactions
It supports various types of transactions, such as voucher-less prepaid top-up, top-up prepaid voucher sale, loan repayments, account balance queries, merchant’s services, cash withdrawals, cash deposits, transfers and bill payments of various types, such as fines, taxes, government fees, utility bills and more.
Improved security
Bank customers can be issued a bank pin and a magnetic chip card or stripe, and use this pin, which is readable by the agent’s terminal, and card for carrying out transactions. Customers can get more security when compared to cash management. For agents, the primary advantage is to drive more customers through their business or shop.
Via agency banking, CrowdForce has been able to empower our agents and the underserved population. The agents are able to provide a number of financial, digital and crypto services through our digital platform to the general masses. When structured and executed properly, agency banking helps businesses scale to a larger level, gives people easier access to digital services and digital identities, and provides a source of income for our agents.
