Unlocking Financial Inclusion: The Power of Digital Financial Services in Agency Banking Solution

In the ever-evolving landscape of the telecommunications industry, innovation remains the driving force behind transformation. One of the most remarkable and transformative developments is the symbiotic relationship between CSPs and the world of agency banking. This dynamic partnership has unleashed a wave of change that not only benefits CSPs but also empowers customers and financial institutions alike. It becomes critical to explore how agency banking is reshaping the telecom industry and bringing about positive change that is both tangible and far-reaching.

Agency Banking Solution, often known as branchless banking, enables banks to deliver services to customers without forcing them to visit a physical branch. This convenience has resulted in a better customer experience, since consumers can just visit a nearby agent rather than traveling to and waiting at a bank branch. 74% of mobile banking users said that they would research a bank’s mobile capabilities before opening an account, and 49% say they would change banks for better mobile banking capabilities. Due to the popularity of mobile devices and high-quality internet services, the globe is becoming more and more equipped with cashless payment options. However, agency banking continues to be the best method of generating the most engaged customers for any bank.

Why use an Agency Banking Solution Strategy?

This innovative approach offers a myriad of advantages for both financial institutions and CSPs. The compelling reasons why embracing an Agency Banking Solution is not just a choice but a necessity for organizations aiming to thrive in this dynamic environment:

1. Cost-effective and Secure

Particularly in Africa and the Middle East, branchless banking has become highly popular. Agency Banking enables banks to save operational and physical location costs while simultaneously expanding their customer base into remote and rural locations. The agents work as an alternate delivery channel (ADC) and support the customer onboarding process by ensuring that KYC biometric compliance standards are satisfied.

2. Automated Techniques to Increase Sales

Mobile technology has contributed to the popularity of the agency banking model. Without digital solutions, agency channels struggle with bank operations in the field due to the numerous paper forms, manual compliance checks, lack of network connection, and limited functionality. With the help of 6D Technologies Agency Banking Solution, banks can provide a paperless customer experience, digitize the document capture process, automate KYC checks and compliance, and quickly onboard new clients.

3. Professionalized Customer Experience

With a quick and safe solution to onboard and maintain clients, CSPs can turn the information-intensive procedure of opening an account in an agents outlet into a simple one that ensures a wonderful customer experience.

4. Seamless Agent Management

With more data insights about the entire operation, 6D Technologies’ Aureus, an Agency Banking Platform provides for the management of a sustainable agent network, the improvement of agent onboarding processes, and the quality of new agents.

5. Account Opening Optimization

Through the process of revolutionizing document workflow and embracing digitalization and automation, effectively eliminating the constraints and potential errors that often accompany manual validation processes. By doing so, consumers can significantly expedite the signup process, ensuring that customer accounts are activated only once all Know Your Customer (KYC) requirements have been meticulously fulfilled. This transformative approach not only enhances operational efficiency but also establishes a more robust and error-free framework for customer onboarding, ultimately boosting customer satisfaction and trust in your services.

6. Customer Identification

Without filling out any paper forms, CSPs can collect and verify your customers documentation. OCR, anti-fraud document or record checks, e-signature technology, and biometric capabilities are all part of the solution, which guarantees that the registration accurately reflects the identity of the actual customer.

How to set up a new Agency Banking channel?

Setting up a new Agency Banking channel is a pivotal step for financial institutions and CSPs looking to extend their reach and offer enhanced Digital Financial Services. Its a journey that holds immense potential to bring convenience and accessibility to underserved communities while expanding the organizations footprint:

1. Manage a secure Agent Network

In agent management the very first step is Agent registration or On-boarding. Agents/merchants can be registered by giving details like Name, MSISDN, Address and KYC documents like National ID , driving license or passport can be captured using (OCR) optical character recognition technology. The platform offers an N-level hierarchy structure. The hierarchy level can be managed with the use of a web-based GUI.

2. Commission Management

Agents and merchants are encouraged to do more transactions because of commissions. 6D technologies’ Aureus offers a transaction type commission, fixed or percentage based commission or commission might be based on the quantity or the level of hierarchy. Commission guidelines might be tailored to meet specific Bank needs. Furthermore, Agency Banking Solution commission distribution between parent and child. It can also set the tax on received commission to be fixed or based on a percentage. Flexible disbursement rules can also be configured, the approvers and the order in which their approval is required can all be chosen.

3. Assisted service

Agents can provide assisted services to their customers like onboarding of customers by collecting their details along with KYC documents;

● Cashin /cash out process for customers

● Utility payments

● Assisted airtime /data top up

● Merchant payments

● QR code based payments

● Third-party payments

● Loan payments

Empowering Financial Inclusion Through Agency Banking Solution

The integration of Agency Banking solutions has ushered in a transformative era that not only diversifies their service offerings but also expands their market reach, bringing essential financial services to unbanked and underbanked populations. By leveraging their extensive networks, technological capabilities, and customer trust, CSPs are playing a pivotal role in fostering financial inclusion and economic growth. CSPs can use the solutions provided by 6D Technologies’ Aureus, an Agency Banking Solution to capitalize on opportunities and keep ahead of developments in agency banking. This symbiotic relationship empowers CSPs to leverage their extensive networks, technological prowess, and customer trust to bridge the gap in financial inclusion, especially in underserved and remote areas. Not just for CSPs, Agency Banking Solution helps Banks and Fintechs to offer simple and personalized banking services to their customers, thereby increasing financial inclusion and promoting economic development. By embracing this financial change, CSPs and Fintechs not only enhance their service portfolios but also contribute significantly to financial accessibility and economic growth.

Thought Leadership Insights: Anu Kenil ,?Assistant Solutions Consultant – Pre-Sales & Product Management