7 Major Benefits of Agency Banking
- Finance 101

7 Major Benefits of Agency Banking

Banks are facing a tough time conducting their operations across the world due to the coronavirus pandemic’s impact. As per Statista, the banking sector’s revenue is going to decrease to 489 billion dollars (approx.) in 2021. In this critical situation, the agency banking solution comes to rescuing traditional banks and financial institutions.

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.

A robust agency banking solution helps the banks extend their services and maximize their market share. It can also promote local development and economic growth by allowing individuals and startups to access essential financial services.

What are the benefits of agency banking solutions?

Financial institutions are still hesitating in adopting the agency banking model, despite the implementation of easy regulatory setup in every country. An agency banking solution is a cost-effective strategy that allows them to reach out to the unbanked population across the globe.

Here are some benefits which an agency banking solution offers to the banks and financial institutions:

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.

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.

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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.

Easy onboarding of customers

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.

Hasslefree loan procedures

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.

Effective management of agent network

Generally, agency banking managers have to engage physically with their agents to manage them. Sometimes, it becomes crucial for banks to manage such a huge interaction with many agents. 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.

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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.

Supports contactless payments

A robust agency banking solution helps banks and financial institutions conduct its operations using contactless payment solutions like QR codes, OCR, NFC technologies, etc. for avoiding human touch.

The financial institutions dependent on biometric verification need to be careful in the times of pandemic. Sometimes, after cleaning and sanitizing the devices properly, there is still some issue remains with it. Banks can solve this issue by using OTPs. They can also share the digital receipt via an email or SMS to its customer instead of a printed one.

Wrapping Up

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. I hope this blog has provided you with suitable information on the topic. Keep reading this space for more such information.

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About nikunjgundaniya

Nikunj Gundaniya, Product manager Digipay.guru, one of the leading eWallet App Development, 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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