Agency banking lets financial institutions make use of agents at hardware stores, post office branches, petrol stations and other established business entities for carrying out small banking services such as loan applications, deposits, withdrawals, and bill payments. Agency banking has many advantages, including the ability to reach a larger demographic, while providing improved security for these populations.

Reducing operational expenses

This form of banking offers lower operational costs for financial institutions. Agency banking boosts financial inclusion by extending banking and financial services to the underbanked, unbanked and underserved population. This kind of banking offers more flexible and convenient access to existing and new customers.

Extended banking services

Agency banking also includes extending banking services to the lower strata of the society via an authorized agent. The banking sector, through this type of banking, pulls various resources together to offer these services, while ensuring that the expenses involved are at a reduced cost.

Ensuring safety

This type of banking also helps ensure the safety of customers, who do not have to travel for long distances or for more time to respective bank branches. There is lower risk of getting robbed, or losing productivity and time during such long journeys. There are local shopkeepers and merchants in the agent banking network that offer basic banking services. The success of agency banking in the Democratic Republic of Congo has encouraged the FINCA (Foundation for International Community Assistance) to introduce agency banking in Zambia and Tanzania.

Helping the economy grow

In the coming years, Agency Banking is likely to play a very big role in boosting financial inclusion. Agents offer financial services to small businesses and individuals that is required for boosting economic growth and local development. Agency banking serves as a win-win option for every party that is involved. The agents are able to sell many specialized services and products on behalf of banks that serve customers based in remote areas. Customers get convenient access to financial services providers who are accredited. Banks win as they boost their own market share.

Our mission at CrowdForce is to incentivize local retailers and members of the community enabling them to provide financial, digital and crypto services to populations in emerging markets. The extension of these services will ultimately lead to financial inclusion.