Availing financial services at your fingertips? Not a far-fetched vision for underserved markets anymore. Conventional banking services may not always be able to serve underserved communities because of geography and limited access. However, an agency banking solution can transform the entire financial prospect from scratch.
Innovative agency banking models are curating a new narrative for banking in underserved segments, encouraging financial inclusion and empowerment at its best. These models go beyond convenience and diversify everyday businesses, such as convenience stores and pharmaceuticals, into mini banks.
The impact of embracing an agent banking platform is visible in the 22% increase in registered agents offering agency banking services in 2023 compared to 2022. Such growth in agent networks indicates a decisive move toward financial inclusion and economic development in underserved markets.
Let's explore how agency banking models can build a stronger financial future for all and foster economic growth.
The Rise of Innovative Agency Banking Models – How They Bridge the Financial Divide
In underserved markets, getting access to essential financial services has always been a dream. But agency banking solution brings the convenience of financial services right around the corner for them, quietly revolutionizing financial inclusion for all.
From Humble Beginnings to Worldwide Reach
As expected, the story of agent banking begins in developing economies struggling with geographic and economic barriers. The sole objective was to fill the gap for isolated and underserved segments in such countries. The first successful agency banking model was founded in Bangladesh in 2013.
The Regional Touch Making All the Difference
Convenience has become a benchmark to get routine financial services. Agency banking ushered in the era of convenience, providing banking services just where people lived or shopped. This was not only about the physical vicinity but also fostered a transformative change. The known face behind the local store counter people trust for daily needs became a friendly neighbourhood banker. This change not only builds existing trust but also makes financial services less intimidating.
Innovation Drivers in Agency Banking
Financial Inclusion Catalyst
It's fair to say that agent banking is a powerful solution for financial inclusion – empowering the unbanked by offering basic banking facilities through an everyday agent's network. Agency banking bypasses the demand for physical bank branches, catering to the needs of those who do not have access.
Technological Progress
With mobile banking, digital wallets, and other emerging fintech solutions on the rise, there has been a revolution in financial services delivery. Currently, agent banking software tries leveraging these technologies to offer a more convenient and easy banking experience.
Cost-efficient Expansion for Banks
Agency banking is no less than a game-changer for financial institutions. Banks get the most out of agency banking solutions since they rapidly expand their reach without the burden of brick-and-mortar branches. Undoubtedly, these open doors to a new customer base and save costs greatly.
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