Benefits

Benefits of Agent Banking

So how will these bank agents benefit Ugandans as a whole?

Increased income through commission

Bank agents will be awarded commissions whenever they perform transactions on behalf of the bank. These commissions are mainly awarded when somebody deposits cash, withdraws cash, and when somebody submits documents to open a bank account through the agent. This is a nice way of generating extra income for a retail outlet.

Increased customer traffic hence more business to the retail outlet

Bank agents usually conduct their normal businesses in addition to being bank agents. For instance, a hardware shop that acts as a bank agent will continue conducting its main business (sale of hardware materials) in addition to being a bank agent. The increased traffic brought about by customers performing banking activities also translates to more people getting to know your business hence more sales.

In our shared platform, the agent will belong to a specific bank, but will be able to offer all services to customers from any/all banks. The entire operations of Agency banking will be guided by regulations from Bank of Uganda.

Ease of access

With bank agents almost everywhere, you will no longer need to travel long distances to visit your bank. Your nearest retail shop could be operating as an agent

Flexible hours

Most banks close their doors by 4pm, but with bank agents, for as long as the business premise remains open, you can do your transactions. This will prove to be very convenient especially for people who are busy during the day.

Cost-Effective

Transacting through bank agents will be cost-effective especially to people who live in rural areas that are far away from banks.

Agent banking will literally take banks to the villages and this will come with many advantages to the customer.

Cutting Costs

Banks will find it cheaper to set up agents as opposed to opening a branch where they will incur extra costs of staffing, rent, electricity etc. With agent banking, the agent incurs almost all the costs.

Increased Product penetration

Agent banking will make it possible for bank products and services to penetrate areas that at first seemed impossible. With agent banking banks have reached even the smallest of villages.

Wide customer base

Bank agents are paid commissions when they sign up new customers and this will lead to an increase in the number of customers for banks. Banks will find it effective to increase their customer numbers in this manner in addition to using sales people.

Agent banking is a form of branch less banking whereby a bank enters into a contract with an agent (mostly a retail outlet) to perform banking services on behalf of the bank.

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