1. This document is offered compliments of
BSP Media Group. www.bspmediagroup.com
All rights reserved.

2. How Do Traditional
Banks Fit Into The
Digital Age
Agent Banking
Perspective
Lowell Campbell
12 November 2013

3. What’s Happened to Formal Banking
•
•
•
Customers have started to question the need to use a branch
The internet arrived which became the first phase of a disruptive influence
This has evolved to the smart phone which became the second phase of a disruptive
influence
(Brett King, Bank 2.0)
•
•
•
We have customers who want control, choice and empowerment
We have customers who want services that are simple, secure, convenient, relevant and
affordable.
We have customers who hold the dream of a cashless environment but,
The reality is that, in Africa, cash is still king
This is the new world in which traditional banking finds itself!!

4. Let Me Paint You A Picture

5. Branchless Banking – The Customer Banks Need To Satisfy
A customer is a person who is utilizing one or more of the services provided by the
bank. (wiki-answers)
Entity
Customer
One and the same
Person

6. Internet Banking - Definition
Online banking (or Internet banking or E-banking) allows customers of a financial
institution to conduct financial transactions on a secure website operated by the
institution (wikipedia)
Mobile Banking - Definition
Mobile banking is a system that allows customers of a financial institution to conduct a
number of financial transactions through a secure platform (WAP) on mobile device,
where the platform is controlled by the institution
Branchless Banking Platform - Definition
A system that allows customers of a financial institution to conduct a number of
financial transactions through a secure platform operated by a duly authorised and
controlled third party

7. Challenge To The Banks
% of Market
10
9
8
7
6
5
4
3
2
1
0
Cost to Bank
HNI
Income to Bank
Executive
Entrepreneur
Salaried
Inclusive

8. So What’s The Problem
HNI
Executive
Entrepreneur
Salaried
Financial Inclusion
Cash In
10
9
8
7
6
Asset Origination
5
Cash Out-Money Send
4
3
2
1
0
Remote Account Opening
Bill Payments
Balance
Enquiry/Statement

9. So What Is The Impact!!

10. We Have Created A Monster!!

11. How Do We Resolve The Challenge
Agent Banking
The provision of certain predefined banking services to a select target market, through
liquid, third party environments, in such a way that the services are simple, secure,
convenient, relevant and affordable.
These services should be seen as an extension of the bank and from a banking perspective,
be able to be provided in such a way that a significant portion of bank costs can be avoided
or significantly reduced.

12. Look At What The Bank Brings To Bare
Bank
Channel
High
Branch
Cost
ATM
Agent
Low
POS Acq
Branchless
Banking
Enabler
Customer
Internet
Mobile

13. So What Does The Nice Picture Mean
It means, that we as banks have a great tool box full of tools, unfortunately many
have yet to decide and learn, how to use these tools in harmony, to service an
ecosystem desperately requiring technology, cash, liquidity, access and control

14. So Why The Convergence Digital and Agent Banking
•
•
•
•
•
Customers want cash – in the real world
Banks are trying to reduce cash
Banks require third party environments to transact their customers
• This requires interaction with numerous Bank channels
Agents are customers who use Mobile, Internet, Branches, ATM’s, other Agents etc.
Customers use Mobile, Internet, Branches, ATM’s, Agents etc.
BUT!!!
At some point cash is required
Banks need to figure out the most efficient, cost effective way to enable interaction from
all bank channels to deliver value and relevance to its customers

15. Branchless Banking – Regulatory Impact
Definition: “The provision of certain predefined assisted banking services to a select target market, through liquid
third party environments, in such a way that the services are relevant, affordable, convenient and above all
secure.”
•
•
By pure definition risks exist and with it the need to regulate the environment.
Any Bank involvement in the delivery of financial services will be and should be regulated irrespective of
the channel or enabler
The Impact :
• A trusted environment where fulfillment of the transaction is assured and where not adequate,
mechanisms exist from a regulatory framework to ensure fulfillment.
• A slightly cumbersome registration and transactional environment
• Potentially slower adoption
• However growth will be sustained and long term in nature irrespective of the enabler
As a Bank however we need to ensure that the implementation of the regulations occurs in such a way that we
take cognisance of the market we are serving and the enabler used.
If not Branchless Banking has the potential to stifle a market

16. Conclusion
•
•
•
•
•
Banking is heading to low cost
Customers are heading towards convenience and control
However, the current climate demands cash, at some point
Agents complete the circle by providing the cash
The Agent, Internet and Mobile Platform’s enable this
But, are impeded in Africa for the need for cash
For Now!!