The power of women-agents in banking and connectivity constraints help design stronger business models

Digestible bites of knowledge from this week [February 10th]

1. ?? The untapped potential of women as banking agents
2. ?? Wave Money: can disruption by price be sustainable?
3. ?? Overcoming Connectivity Challenges in Remote Areas

Enjoy your reading!

1. ?? ?? The untapped potential of women as banking agents

The increasing role of women as banking agents in India highlights their valuable contributions to financial inclusion.

It emphasises the benefits of employing #womenagents, such as higher sign-up rates, larger transactions, and stronger customer relationships. It underscores the potential for women agents to drive financial inclusion, enhance their empowerment, and reshape societal norms.

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• Women banking agents in India demonstrate higher sign-up rates and forge enduring relationships with customers, presenting an opportunity to foster diversity and unlock new revenue streams within the banking sector.
• The collaboration between public sector banks and state rural livelihood missions to recruit and train BC Sakhis has the potential to transform the accessibility of financial services for women customers and agents across India.
• Investing in women banking agents can lead to greater financial inclusion, empowerment, and the reshaping of societal norms, ultimately bridging the financial gap and fostering equitable financial services for all.

?? To ensure that women are included in financial services and systems, it is necessary to adopt an approach that is specifically designed to address gender-related issues.

TymeBank identified three sets of barriers preventing women from engaging at CICO access points and implemented best-practice approaches to solve these challenges and drive female customer engagement.

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2. ???? ? Wave Mobile Money: Can disruption by price be sustainable in financial inclusion?

Wave's entry led to a significant drop in money transfer fees and prompted dominant players such as Orange and Ivory Coast to lower their fees and shift service delivery. However, this disruption has had uneven effects on rural and urban customers and agents, with rural agents facing more challenges and a potential loss of financial inclusion gains, according to the CGAP report.

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• The arrival of Wave in the Ivorian mobile money market has led to significant disruption, with potential risks of reduced financial inclusion in rural areas due to the uneven impact on rural and urban agents and customers.
• Wave's innovative model offers free deposits and withdrawals, but its entry has caused uncertainty in rural areas as agents face lower commissions and competition from other MNOs.
• The disruption has primarily benefited urban customers, but it has negatively affected rural agents, leading to potential closure or inactivity of rural agent networks, which could hinder rural financial inclusion gains. The success of agent networks in the mobile money market depends on factors such as a clearly defined value proposition, an understanding of competition, and strategies to attract and retain agents in a highly competitive environment.
• To mitigate the risk of rural financial exclusion, differentiated agent commission structures, government support through taxation policies, and digitization of #G2P transfers to rural customers are suggested as potential solutions.
• Wave's rapid growth and expansion were also fueled by venture capital funding, but the company is now adjusting its strategy in response to the global economic downturn by cutting costs, pausing expansion, and securing substantial debt funding of $92 million.
• Despite the challenges, Wave aims to sustain its growth by prioritising customer service, optimising its balance sheet through a mix of debt and equity capital, and continuing to compete with telecom companies like Orange in Senegal and C?te d'Ivoire.

??? Emerging Market Innovation? It's expensive to go alone, take this!           

3. ?? ?? Overcoming Connectivity Challenges in Remote Areas

Offline transactions are essential for financial inclusivity, especially in remote areas with limited internet access, providing a lifeline for individuals to participate in the economy and access essential services. #mobilemoney #ussd #qrpayments #CBDC

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• Offline transactions are crucial for financial inclusivity, especially in areas with limited internet connectivity, and can serve as a backup solution during network outages or cyberattacks.
• Technologies such as mobile money with USSD channels, QR codes, and blockchain-based digital currencies are enabling offline transactions and addressing connectivity challenges in remote areas.
• Overcoming connectivity challenges requires a multi-faceted approach, including investing in infrastructure, promoting education and digital literacy, and creating regulatory support for innovative digital technologies.

?? How Mpesa leverages its Vodacom relationship to leverage unfair advantage on USSD costs.

Transfer price means the amount charged by a company in the sale or transfer of goods, services or intangible property, to the company related to it. In the case of prices that were not negotiated in a free and open market, they may deviate from those that would have been agreed between unrelated commercial partners, in comparable transactions under the same circumstances. - Wikipedia

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?? I help financial providers reach last-mile customers with alternative channels

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