Nearly 48% of the population in Africa uses banking services, which means half of the population remains unbanked. Agent banking platforms become a flicker of hope in underserved markets by decentralizing banking operations and making the most out of local agents to reach remote areas and cities alike. This gives everyone a safe place to save money, get loans, and plan the future.
But what makes a good agency banking solution actually “good”? Explore the five must-have features of agency banking for African markets that you should look for.
5 Essential Features to Look for in an Agency Banking Platform
Biometric Authentication
Security is imperative in financial transactions, especially in Africa’s agency banking, where cash handling is most prevalent. Conventional ways, such as PINs, offer some security level and are a good starting point. However, adding biometric authentication at the end of the sale provides a great deal of protection. With biometric authentication, it is just a quick scan, free from the hassle of remembering complex PINs. Fingerprints and face recognition can prevent unauthorized access and fraud, securing agents and customers.
POS Integration
Cost efficiency and quickness are essential for agency banking success. Ideally, the agent banking platform should go beyond basic transactions and must be facilitated with POS (Point-of-Sale) functionalities. POS integration enables agents to access more services directly through the platform. Some key POS functionalities that you should look for while picking an agency banking solution are:
- Seamless Fund Transfers
Ability to initiate real-time transfers with customers’ consent by selecting source and destination accounts. This feature integrates with the backend system and gives transaction records, improving financial accessibility. - Cash Management Made Easy
POS empowers agents to manage cash deposits and withdrawals safely. Agents can accept deposits, update real-time account balances, and process withdrawals. - Bill Payments On-the-Go
Customers do not need to travel longer distances or wait in lines to pay their bills. An agency banking solution aids in timely bill payments for different services and utilities. - Quick Top-ups
Most agent banking platforms offer convenient top-up services for mobile phones, empowering customers to remain connected and manage their communication needs.
Agent Performance Tracking
Agents are at the heart of agency banking – naturally, every agent plays a vital role in the success of the entire agent banking network. The platform should have robust monitoring of agent activity, which includes transaction volumes, agent response time, and customer satisfaction ratings. Agent performance tracking can support in:
- Identifying high-performing agents
- Offering targeted training
- Implementing reward programs
Proper Compliance
It is a known fact that the financial industry has rules, and agency banking is no exception. Your solution should have built-in features that make it easy to follow regulations specific to each country. Features that help with KYC and AML compliance are vital for adherence. Financial crimes can be avoided with proper compliance, and institutes can ensure smoother operations.
Loan Applications & Payments
With an agent banking platform, agents can act as financial catalysts that simplify the complete loan process journey. The platform removes the troubles of complex paperwork and longer processing times. Here are some things you can expect when it comes to loans:
- Effortless Loan Applications
Agents can assist customers with a user-friendly loan application process straightaway on the platform. Thus, ensuring all critical information is stored appropriately and that there is a faster and more effective submission. - Handy Loan Repayments
Customers can repay their loans using the agent banking platform, avoiding trips to separate branches, and ensuring convenience. Agents can accept payments and update loan accounts in real-time, too.
Do not settle for less! Before you pick an agent banking platform, ensure it brings on the features stated above and beyond. By prioritizing these features, you get the following significant benefits.
Benefits of an Agency Banking Solution for Africans
Agency banking can change how banking services are offered in Africa. There are many success stories of agency banking worldwide. Take M-Pesa, a mobile money network that has become a trusted platform for financial transactions in Kenya, as a prime example.
The surge in agency banking is not momentary. It comes with massive opportunities and benefits for the future. Some of them are like the ones discussed here.
Financial Inclusion of Unbanked Segment
Across Africa, more than half of the population needs access to conventional banking services. The primary reasons are remote areas, limited infrastructure, and complex paperwork. Agency banking solutions bridge the gap and make financial services accessible, promoting financial inclusivity. The agents become mini banks to the community, offering them essential services such as account opening, cash deposits, withdrawals, and bill payments.
Convenience Beyond the Branch
Most Africans used to travel long distances to avail basic banking facilities before agency banking came into play. With a vast agent network across villages, towns, and cities, agency banking cuts through the inconvenience of spending valuable hours traveling to the bank branch. For Africans, agency banking offers convenient financial services, especially where limited transportation and infrastructure are a concern – a game-changer in itself.
Improved Efficiency and Quick Transactions
By using technology, agency banking platforms streamline transactions and enhance banking efficiency. The agency banking platform lets agents process deposits, withdrawals, and other services in real-time. This eliminates manual procedures and reduces errors and customer waiting time. Integrating mobile money also increases efficiency by enabling cashless transactions via mobile phones. Along with streamlining transactions and improving efficiency, users can manage their finances anytime & anywhere.
Affordable Expansion for Banks
Setting up a network of physical branches in emerging markets like Africa can demand significant money. Thanks to agent banking platforms, banks get a low-cost alternative to expand their presence and customer base. Banks do not need to build a new branch by partnering with agents. They can leverage existing infrastructure and footfalls. Banks can extend their services to underserved regions without a significant financial burden.
Win-Win Situation for All
For every party involved, agency banking creates a win-win situation. Banks onboard new customers and generate additional revenue through new account openings and transaction fees. Agents earn for all the transactions they facilitate, increasing their income substantially. Increasing footfall in shops due to agency banking can increase product sales. Lastly, the African community can enjoy the ease of banking with agency banking.
Empower your Financial Future with MobiFin’s Feature-Rich Agency Banking Solution
With the financial revolution in Africa, the scope to bank the unbanked remains more significant than ever. If you are a bank, you cannot miss this opportunity. MobiFin Agency Banking brings a robust solution with five features and a transformative ecosystem.
Eliminate silos and build a financially inclusive future – schedule a demo with our experts today. MobiFin is ready to empower banks, agents, and the African community with seamless and accessible banking services.
