How to deploy agency banking in Africa

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FINCA International, in partnership with the Mastercard Foundation, has released a case study to highlight FINCA’s journey in deploying agency banking in Africa over the past four years.

The case study outlines strategic, operational and technical learning that other finance and microfinance institutions can consider when creating or building upon a similar program.

Working jointly, FINCA and the Mastercard Foundation have deployed various digital solutions, such as agency and mobile banking, to scale up financial inclusion efforts and reach more underserved and unbanked communities in sub-Saharan Africa.

Agency banking utilizes a network of local merchants and shopkeepers, in areas where FINCA usually does not have a presence, to provide basic banking services. De agenter er udstyret med POS (Point of Sale) maskiner, et bærbart apparat, der sikkert forbinder til FINCA bankkonti via biometriske fingerprints. Since launching agency banking in the DR Congo in 2012, over 80 percent of all transactions by FINCA clients in that country are done through banking agents.

Agency banking has since expanded to FINCA’s subsidiaries in Malawi, Nigeria, Tanzania and Zambia, working with over 1,400 agents in the field.

FINCA’s approach is to adopt and scale technology to deliver efficient, customer centric products while still maintaining close relationships with our customers. Other key lessons detailed in the case study include the importance of gaining institutional buy-in, aligning strategic goals and gaining customer trust to drive uptake and usage.

According to FINCA Impact Finance CEO Andrée Simon, “Agent banking removes a lot of the logistical barriers that prevent people from fully leveraging the financial tools available to them.” FINCA is now developing financial products and services to be delivered through this increasingly important channel. ”

“We are pleased to support FINCA,” said Sumaiya Sajjad, Program Manager at the Mastercard Foundation, “as it expands agency banking to reach remote and underserved communities in Africa and offers critical banking solutions. This partnership shows that, by investing in agent netdiensten en waarde-toegevoegde diensten, financiële dienstinstellingen kunnen beter hun klanten bedienen en helpen om de kloof van de financieel uitgesloten te sluiten. ”

The new case study can be accessed here

 

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