8 Essential Benefits Of Agency Banking

Introduce to Benefits Of Agency Banking

Benefits Of Agency Banking
Benefits Of Agency Banking

The impact of the coronavirus pandemic has made it difficult for banks to operate worldwide. According to Statista, banking sector revenue will decline to around $489 billion in 2021. During these tough times, the agency banking solution comes to save traditional banks and financial institutions. Agency banking is a form of branchless banking.
It enables traditional banks and financial institutions to expand their network of branches, maximize market share and services through authorized agents in a cost-effective manner. It allows them to reach out to the untapped population across the world.

Agency banking provides a wide range of facilities such as easy deposit and cash withdrawals, debt management, fund transfer, account inquiry, etc. Here are some major benefits that an agency banking solution provide to the banks and financial institutions:

here is some Benefits Of Agency Banking


1. Brand Awareness In Undeveloped Areas:

Brand Awareness In Undeveloped Areas
Brand Awareness In Undeveloped Areas

Agency banking develops a marketing strategy for banks that makes the brand humane and familiar. The brand clings to the mind of the customer as a certain experience or individual connects with a certain company. The strategy is implemented by banks through the network of agent shops set up close to customers. Likewise, through a trusted agent, the bank brand becomes acceptable which ensures security to customers in rural areas.

2. Data Appetite:

Data Appetite
Data Appetite

The increased presents at agent shops provide an opportunity for the banks to gather unconventional data based on customer transactions and purchasing habits. The data can be utilized to create unique financial products for both end customers and merchants. Therefore it is crucial for branchless banking solutions to gather data and offer data reporting and analytics capabilities.

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This data can be used to run proprietary algorithms and establish customer eligibility for pre-approved loan products. Through these data, agency banking solutions can make their services more relevant and accessible for their customers and increase the revenue as well.

3. Personalized Privileges:

Personalized Privileges
Personalized Privileges

Consumers in remote areas are still hesitant to access financial services. Banks should step up to the plate to develop a relationship with rural customers and ensure their safety and educate them on the benefits of agency banking as well. Therefore the bank should ensure that the services are provided to the customers at a convenient place nearby. Consumers now also expect higher personalization in digital payment transactions. So fintech companies should provide better facilities to their customers.

Adoption of agency banking solutions provides high personalization of services to business owners, which will be accomplished through exchanging pleasantries and discussing matters of mutual concern between the business owner and the customer. Personalization of the privileges includes customized offers, financial advice, and notifications.

4. Easy Platform:

An agent banking app allows agents to deposit and withdraw money out of their digital wallets under various commercial rules. It can be used by agents to transfer money from their stored value accounts to customer’s bank accounts. Agent banking platform provides financial services to the illiterate and unbanked populations, usage of mobile phones, card readers, POS terminals, and other technology for the processing of real-time transactions.It is very essential Benefits Of Agency Banking


5. Enhanced Customer Experience:

Customers demand speed and convenience at the time of making banking transactions. Time-consuming paperwork and heavy banking processes create a tedious banking experience for customers. Therefore clients look for a robust digital option that provides them the ease and speed they desire. At this point, an efficient agency banking solution may be the savior for them.

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Agency banking solution provides various features such as rapid integration process, clear product presentation, and demonstration of new customer features. It brought banks to the doorstep of the customers. Now the customer doesn’t need to travel and wait in a queue at the bank branch for hours, customers can easily meet their agents who are located in their proximity and carry out their operations through their agents. Ultimately this will expand your customer base. here is the 5th point of the Benefits Of Agency Banking.


6. Top-notch Security:

Top-notch Security
Top-notch Security

Branchless banking solution offers top-notch security to their customers. Bank customers may be given a bank PIN and a magnetic chip card or strip that they can use to transact at the agent’s terminal. Compared to cash management, bank PIN and magnetic chip card or strip are more secure.

The main benefit for agents is that they can drive more customers through their business or store. Agents can provide a number of digital, crypto, and financial services to their customers and expand their customer base towards their business. Well-structured and executed agency banking solutions provide people easy access to digital services and digital identities. Top-notch security is the most beneficial Benefits Of Agency Banking.

7. Support For Various Transactions:

It supports multiple types of transactions such as voucher-less prepaid top-up, top-up prepaid voucher sale, loan repayments, account balance queries, merchant’s services, cash withdrawals, cash deposits, transfers, and bill payments of various types, such as fines, taxes, government fees, utility bills and more. Also, It supports contactless payment solutions such as QR codes, OCR, NFC technologies, etc. to avoid human interaction.

Financial institutions that rely on biometrics verifications should be cautious in times of outbreak. Because sometimes, some issues persist even after cleaning and cleaning the equipment properly. Agency banking app resolves this issue by using OTPs. Also, they can share the digital receipt instead of a printed one via an email or SMS to their customer.

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8. Achieve the SDGs through financial inclusion:

Financial inclusion is linked to every sustainable development goals (SDGs). Financial institutions have a crucial role to play in ensuring that financial services are accessible to most individuals. The agency banking solution relies on innovative technology and the right marketing strategy to bring its products to market which leads them to reach more customers.

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Wrapping Up:

Agency banking is changing the banking sector worldwide. The automation of banking services is increasing the scope of the banks in numerous folds. They can easily adapt the way of contactless banking. Banks also have the authority to provide services to an individual in their place. Customers can now take advantage of home banking services. Thus, agents find an additional source of income and they are also motivated to contribute to economic growth.

Author Bio

Nikunj Gundaniya, Product manager Digipay.guru, one of the leading digital wallet app development company USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

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