In the recent past, many banks have embraced agency banking. it has enabled banks to conduct their operations across the world. through this, banks are able extend their services and maximize their market share. It also promote local development and economic growth by allowing individuals and startups to access essential financial services.
It offers multiple facilities like easy deposits and withdrawal of money, loan management, fund transfers, account inquiries, etc. It also allows the banks to conduct their operations in rural areas where every Fintech business can’t reach.
What are the Benefits of Agency Banking?
1. Agency Banking is a Branchless banking
Agency Banking is also known as branchless banking. It offers multiple benefits like risk management, product availability, improved financial inclusion, and a wider customer base to the financial institutions across the world. It allows the traditional banks to go branchless by extending their branches’ network via authorized agents in the rural populations.
2. Agency Banking has Personalized services
Consumers now expect a higher personalization in their digital payment transactions. This has forced the fintech companies to provide better banking facilities to their customers. An efficient agency banking solution offers a higher personalization of services to the business owners. This customization of service includes personalized offers, financial advice, and notifications.
3. Agency Banking Facilitate Real-time transactions
With an efficient agency banking solution, a customer can complete its banking transaction in real-time. It allows the customers to access their funds on an immediate basis. It helps the institutions to make their payments on time. It also enables customers to check the status of their cheques.
4. Loan procedures are Made Easy Through Agency Banking
Agency banking solutions make the loan process a seamless experience for the customers. Now the customers can apply for the loan by just uploading their bank statement and IT Return.
The data-driven platform then fetches the credit-related information at the back end and runs a financial check on the applicant’s overall banking transactions. It will then generate a letter if the lending criteria have fulfilled successfully.
In this way, an agency banking solution allows a self-service mode for its users.
5. Customer can Access Multiple services within a Short Time through Agency Banking
Customers want speed and comfort while doing banking transactions from their smartphones. Lengthy, paperwork, and heavy banking processes create a tiresome banking experience for the customers. This will make the customer seek a robust digital alternative that gives them the speed and ease they want. At this time, an efficient agency banking solution can be a savior for them.
It offers multiple features like speedy onboarding process, the clear introduction of the product, and demonstration of the new customers’ features. Selfie-based onboarding and video-call based onboarding are some new features that banks can use for easy onboarding of the customers.
6. Agency Banking reduces Banks operating Costs
Banks can use agency banking solutions to decrease the cost of operating the agent network. An agency banking solution uses chatbots and messengers to help the banks decrease physical interaction between the agents and their managers.
Banks can offer real-time guidance and support to their agents at any time by using the agency banking solution. This will enhance their customer experience, and also, they can be able to strengthen their agency network.
Agency banking solutions play an important role in the financial inclusion of any country. By integrating digital FinTech methods, banks and financial institutions can easily adopt the contactless way of banking.