Reaching customers in urban localities is both convenient and feasible for a bank. With innumerable customers, the multiple branches of a bank and its ATMs can generate enough ROI to cope with the high CapEx and OpEx. However, banks have exhausted the urban areas as most of the households have multiple personal accounts leading to limited number of potential customers.

On the contrary, rural areas are the untapped market for the banks. Furthermore, opening branches and ATMs in rural areas can be an expensive affair for many financial institutions as numerous still rely on cash for all transactions. Therefore, due to lack of adaptability and awareness in rural areas, tapping the rural market may not be profitable for a bank.

By implementing a well-structured agent management solution, banks can scale the reach of their services and maximize their market share. Acting as ‘proxy banks’, these agents are also promoting local development and economic growth as individuals and small businesses have access to the essential financial services.

5 Unconventional Benefits of Agency Banking
According the World Bank’s Global Findex Database, in the year 2017, 1.6 billion people and 200+ million MSMEs around the world did not have access to basic financial services. Banks play a pivotal role in reducing this number and aid financial inclusion for the country. Agency Banking is the most sought-after way for banks to reach out to the rural people with ease. Apart from the cursory benefits, agency banking has other unnoticed pros too. Let us look at the 5 unconventional benefits of Agency Banking.

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