2. Brief Introduction
Agency banking was started with the aim of
penetrating under-served areas such as rural
communities that do not have access to financial
services hence the reason for The Central Bank of
Nigeria’s introduction of agency banking which is
aimed at connecting rural dwellers to the financial
system
4. Agency Banking Model
Designed to help banks lower
their cost of offering banking
services
Improving earnings as more
people are offered opportunity to
access financial services
5. Agent
Outlet owner who conducts
banking transactions on
behalf of the bank
Payment facilitators who recruit
and train agents
Super Agents
Agent banking: The provision of banking services by a third-party
agent to customers on behalf of a licensed, prudentially-regulated
financial institution
7. Banking Agent Network Model
Vertical Model Horizontal Model
Financial Institution
Super Agents
/Facilitators
Agent AgentAgent Agent Agent
Financial Institution
Agent AgentAgent Agent Agent
8. Pros of Agency Banking
For Bank
● Expand customer base
● Reduce infrastructure & manpower cost
● Increased revenue
For Agent
● Additional income generation & Lower cost of Ownership
● Affiliation with well known banks provide competitive edge for them
For Customer
● Unbanked & underbanked customers have easy access to the bank
Services
● Reduced travel time
● Lower transaction fee
10. Agency banking will play an important role in the coming
years for financial inclusion. Acting as proxy banks,
agents will provide individuals and small businesses with
the financial services they need to stimulate local
development and economic growth
Justin Ho, Vice President, Mobile Financial Services, Amdocs
August 2017
11. 80%of the adult population in
Africa’s developing regions are
either unbanked or underbanked
The Market
13. Present Challenges
● Agent’s startup capital unavailability
● Liquidity (float) related problem
● Network failure
● Perceived credibility (trust)
● Security around cash handling
14. ● Provision of loan to agents
● Mini vault with an insured daily limit
● Improve mobile network accessibility
● Investment of time and effort by bank to train agents
● Vetting location for the setup of the agent outlets
Recommendations
15. ● Simplicity of User Interfaces
● Proximity of Agents
● Liquidity of Agent
● Credibility
● Security
● Effective dispute management
Service Improvement Methods