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December 19, 2019

4 under the radar benefits of Agency Banking

We have talked at length about the key benefits of Agency Banking in previous editions of the blog. In this edition, we want to explore 4 benefits of Agency Banking that you perhaps had not considered.

Lets dive in!

1. Grow relationships.

We live in a world where consumers are spoilt for choice in terms of service, selection and pricing. Banks and financial service providers can prove they care by providing their services at convenient places in the community.

In surveys, customers have expressed a preference for a local vendor as opposed to a bank branch for financial services.

So by adopting an Agency Banking model allows a local member of the community to offer personalised banking services while the customer is able to make other purchases. This can all be done while having a chat about local community news.

2. An investment in strengthening your brand

A common strategy in marketing, especially among FMCGs is making the brand more relatable and familiar. The aim is to make the brand sticky in the mind of the consumer.

The same strategy can be applied by banks and other financial institutions aided by a network of agent shops set up close to customers. Being in close proximity to the community serves these brands through being a high-frequency touchpoint for brands at a lower cost than rolling out the traditional ATM and branch network.

3. Uncover new and deeper insights!

The increased footprint at agent shops gives banks the opportunity to gather unconventional data based on customer transactions and purchase habits. Data can then be used to create unique financial products for both end customers and merchants.

This is why it is key for an agency banking platform to collect data and offer reporting with analytics capability. Youtap's Agency Banking solution provides embedded analytics supercharged with intelligent reporting to help our clients make sure their agent networks are constantly evolving and are fully optimised.

An example would be Safaricom, the largest virtual bank in Africa. Safaricom has introduced a new product called 'Fuliza' which is Swahili for 'continuously flowing'. Fuliza, is an overdraft facility that enables M-Pesa customers to complete a transaction when they have insufficient funds in their wallet accounts. Published results show that $810 million was disbursed within 6 months of rolling out Fuliza. This product was developed based on the data which showed the number of transactions which were incomplete due to insufficient funds.

Obviously while offering convenience to customers, such new products can also be new revenue streams for institutions.

4. Do your part for Financial Inclusion and the United Nations Sustainable Development Goals

1.6 billion people and 200+ million MSMEs around the world did not have access to basic financial services in 2017 according to the World Bank's Findex Database.

Financial Inclusion is tied to each of the Sustainable Development Goals from the United Nations. Financial institutions have a responsibility to play a critical role in widening access to financial services for unbanked people and businesses. The clear benefits of agency banking can be felt here through an increase of accessible banking touchpoints for traditionally underserved communities.

Those are just four under the radar benefits of agency banking, there are much more compelling benefits. They should be viewed as supplementary points that support the business case for Agency Banking implementation for banks and financial institutions.


From Africa to Asia and everywhere in between Youtap's Agency Banking solution is redefining mobile financial services and driving new revenue streams for banks and financial institutions.

Get in touch with our experts today to learn more about how we can transform your organisation's network.

December 19, 2019

4 under the radar benefits of Agency Banking

We have talked at length about the key benefits of Agency Banking in previous editions of the blog. In this edition, we want to explore 4 benefits of Agency Banking that you perhaps had not considered.

Lets dive in!

1. Grow relationships.

We live in a world where consumers are spoilt for choice in terms of service, selection and pricing. Banks and financial service providers can prove they care by providing their services at convenient places in the community.

In surveys, customers have expressed a preference for a local vendor as opposed to a bank branch for financial services.

So by adopting an Agency Banking model allows a local member of the community to offer personalised banking services while the customer is able to make other purchases. This can all be done while having a chat about local community news.

2. An investment in strengthening your brand

A common strategy in marketing, especially among FMCGs is making the brand more relatable and familiar. The aim is to make the brand sticky in the mind of the consumer.

The same strategy can be applied by banks and other financial institutions aided by a network of agent shops set up close to customers. Being in close proximity to the community serves these brands through being a high-frequency touchpoint for brands at a lower cost than rolling out the traditional ATM and branch network.

3. Uncover new and deeper insights!

The increased footprint at agent shops gives banks the opportunity to gather unconventional data based on customer transactions and purchase habits. Data can then be used to create unique financial products for both end customers and merchants.

This is why it is key for an agency banking platform to collect data and offer reporting with analytics capability. Youtap's Agency Banking solution provides embedded analytics supercharged with intelligent reporting to help our clients make sure their agent networks are constantly evolving and are fully optimised.

An example would be Safaricom, the largest virtual bank in Africa. Safaricom has introduced a new product called 'Fuliza' which is Swahili for 'continuously flowing'. Fuliza, is an overdraft facility that enables M-Pesa customers to complete a transaction when they have insufficient funds in their wallet accounts. Published results show that $810 million was disbursed within 6 months of rolling out Fuliza. This product was developed based on the data which showed the number of transactions which were incomplete due to insufficient funds.

Obviously while offering convenience to customers, such new products can also be new revenue streams for institutions.

4. Do your part for Financial Inclusion and the United Nations Sustainable Development Goals

1.6 billion people and 200+ million MSMEs around the world did not have access to basic financial services in 2017 according to the World Bank's Findex Database.

Financial Inclusion is tied to each of the Sustainable Development Goals from the United Nations. Financial institutions have a responsibility to play a critical role in widening access to financial services for unbanked people and businesses. The clear benefits of agency banking can be felt here through an increase of accessible banking touchpoints for traditionally underserved communities.

Those are just four under the radar benefits of agency banking, there are much more compelling benefits. They should be viewed as supplementary points that support the business case for Agency Banking implementation for banks and financial institutions.


From Africa to Asia and everywhere in between Youtap's Agency Banking solution is redefining mobile financial services and driving new revenue streams for banks and financial institutions.

Get in touch with our experts today to learn more about how we can transform your organisation's network.