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 institutions
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
To Agents
- 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 Institutions
- 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
Key Features
- Deposits (Cash-In)
- Withdrawals (Cash-Out)
- Balance Enquiry
- Mini Statement
- Loan Repayment Collections
- Fund Transfers
- Utility Payments
- Cheque Book Request
- ATM Card Request
- Stop Cheque Payment
- Stop ATM Card
- Mobile Wallet (Mobile Money to Account and vice versa)
- Account Opening Origination
- Cash Collection-Merchant System