Financial institutions and banks in several countries are coming up with ways other than traditional banking for financial inclusion of the unbanked people staying in remote/rural areas. Opening and running a traditional bank branch is often an overwhelming process for the banks. Agent banking or branchless banking allows financial institutions to deliver their services to a majority of poor households residing in remote areas through a network of retail agents. Agency banking is a holistic solution that aids the entire financial ecosystem including people in remote areas, retail agents as well as the banks.

Agent banking services help banks to expand their customer base by onboarding new customers who were previously out of their reach without investing enormously in physical bank branches, infrastructure, and manpower costs. The retail agents benefit as they get an opportunity to generate additional income, including sales from additional footfall. This allows the retail agents to differentiate themselves from competitors as they are associated with well-established banks. Lastly, the formerly unbanked and underbanked customers from rural areas can get easy access to a financial institution without having to travel long miles.