Agency BankingAgency Banking also commonly called as Branchless Banking Solution, which not only provides list of banking services but also lets Bank take care of complete Agency Management. Our solution supports Agent Recruitments, Training, Commissions, Pricing, Revenue Management, Governance and more.
What is Agency Banking?
Agency Banking is the system which allows commercial outlets like shops and supermarkets to act in some capacity on behalf of formal banks and financial institutes. The true power of agency banking would not be unleashed until some trusted third parties are not involved in performing some of the activities that are traditionally performed in branches by financial institution staff. It's also understood that agents are best utilized when banks equip agents with some technology products. It's up to the bank to engage the agents on the level of operations. Banks would also follow multiple agency structures to manage them in a better productive way. For example, Bank would appoint Distributors, Distributors appoints Agencies, who in turn appoint Sub-Agencies and Direct Agents etc. Banks would also decide on what is the type of account they would like to offer to customer based on the information submitted by customer at the time of opening an account.
Benefits of Agency Banking
Following are the benefits to various entities involved in Agency Banking System
To Customers i.e. End Client
- Lower transaction cost (closer to client’s home; client would visit store anyway for groceries, etc.)
- Longer opening hours and shorter lines than in branches
- More accessible for illiterates and the very poor who might feel intimidated in branches
- Increased sales from additional foot-traffic
- Differentiation from other businesses
- Reputation from affiliation with well-known financial institution
- Additional revenue from commissions and incentives
To Financial Institutes
- Increased customer base and market share
- Increased coverage with low-cost solution in areas with potentially less number and volume of transactions
- Increased revenue from additional investment, interest, and fee income
- Improved indirect branch productivity by reducing congestion