Banking agents, retail and postal outlets handling banking transactions for financial institutions and mobile operators, are mushrooming all over! It took less than four years to cover almost all of Brazil. Colombian banks established 3,548 service points in just one year. In Peru banks manage more than 2,500 agents. Equity Bank in Kenya is piloting agents in rural areas. Xac Bank in Mongolia is planning to develop an agent channel….

In early 2006, CGAP started its research on banking agents, retail and postal outlets that handle banking transactions for financial institutions and mobile operators. Since then, I am not sure how many times I have used the term “banking agents”…

To explore if agent networks can hold their promise and deliver financial services into remote and underserved areas on a viable basis, CGAP seeks to answer the following questions: 

-What are banking agents and how do they work?
-Why develop banking agent networks and how will clients benefit?
-How to establish and manage an agent network?
-How to manage cash liquidity?
-How to acquire and retain clients through an agent network?
-How to earn money through banking agents?

Though there’s much more to learn, we have already learned a lot about the answers to these questions. In fact, banking agents are essential to most of our first round of projects.

So…watch this space.

Meanwhile, if you want more detail about this business model, take a look at our summary powerpoint presentations describing the agent network approach, its implementation, business model, and market reach.