The effects of the coronavirus outbreak are making it difficult for financial institutions all around the world to carry out their day-to-day activities. In this potentially disastrous situation, the answer that comes to the rescue of traditional banks and other financial organisations is the solution that is known as agency banking.
It facilitates a wide range of financial transactions, including straightforward cash deposits and withdrawals, the management of loans, the transfer of funds, account inquiries, and many more besides. Additionally, it enables banks to carry out their operations in rural areas, which are notoriously difficult or even impossible for fintech businesses to reach.
The implementation of a robust agency banking solution helps financial institutions to extend the range of services they provide while simultaneously growing their share of the market. In addition to this, it has the ability to encourage the growth and development of the surrounding area by lowering the barriers that prevent individuals and new enterprises from gaining access to the essential financial services they need.
What are the benefits of agency banking solutions?
Financial institutions are still unwilling to adopt the agency banking model, despite the implementation of basic regulatory framework in every jurisdiction. This is in spite of the fact that there are a number of benefits associated with the concept. A approach that is both effective in terms of cost and makes it feasible for them to interact with unbanked individuals all over the globe is the adoption of an agency banking solution.
When a bank or other financial institution implements a solution for agency banking, they are able to take advantage of a number of benefits, which are outlined in the following list:
– Banking with no physical locations
It is commonly referred to as “branchless banking,” and it offers a multitude of benefits to financial institutions all over the world, including increased financial inclusion, improved risk management, increased product availability, and a larger client base. The practise of banking via an agency is often referred to as “branchless banking.” It gives traditional banking institutions the ability to do business without maintaining physical branches by extending their branch network via approved agents situated in outlying regions.
– Transactions that are occurring in the present moment
If the advanced agency banking solutions that a customer is utilising is efficient, then they will be able to complete their financial transaction in real time. Customers get quick access to whatever money they have on deposit with the business as a result of this feature. Because of this, the institutions are better able to keep to their payment schedule at all times. Using this method, consumers are able to check on the progression of their pending checks at any time.
– Specialised care and focus for each individual customer
These days, consumers have come to assume that the digital payment methods they use will allow for a higher degree of personalization in some capacity. As a result of this, the companies that deal in financial technology have felt increased pressure to provide their customers with enhanced banking services. An efficient solution for agency banking gives business owners a higher level of control over the degree of personalization available in the services they get. This personalised method to providing customer service incorporates a variety of features, including personalised offers, financial assistance, and notifications, among others.
– Simple signup and orientation processes for new customers
Customers have an expectation that using their cellphones to complete financial transactions would provide an experience that is both speedy and convenient. Because banking operations are sometimes drawn out, need a significant amount of paperwork, and require a lot of manual effort, customers often find their time spent in the bank to be tedious and laborious.
Because of this, the customer will be encouraged to hunt for a potent digital alternative that meets their demand for speed while also meeting their need for ease. They may find that an efficient banking solution for the organisations for which they work would be a blessing for them at this time.
It offers a variety of advantages, such as a streamlined process for onboarding new customers, a comprehensive introduction to the product, and a live demonstration of the advantages it brings to new customers. New capabilities are available for use by financial institutions to utilise in order to streamline the process of onboarding new customers. Some examples of these new capabilities are video-call onboarding and selfie-based onboarding.
– Simple procedures available for seeking financial assistance
As a consequence of the solutions provided by agency banking, the entire experience that customers receive while applying for loans is significantly improved. Customers may now submit their loan applications by simply uploading a copy of their most recent bank statement and income tax return. This makes the process much more convenient for the customer.
The data-driven platform then obtains the information connected to the applicant’s credit history from the back end and does a financial check on the applicant’s entire banking activity in order to determine whether or not the application is eligible for the loan. After that, it will generate a letter in the event that the prerequisites for the loan have been satisfied in a successful manner.
Users of a banking system that utilises an agency model are given the flexibility to act as their own service providers in this fashion.
– Administration of the agent network in an efficient manner
For the most part, in order to successfully manage their agents, agency banking managers are expected to have personal contact with those agents. This is necessary in order to ensure that the agents are being properly managed. There are times when it is absolutely required for banks to be able to manage such a big interaction with a large number of agents. These are the times when it is absolutely vital for banks to have this capability. By using agency banking solutions, financial institutions like banks are able to cut the expenses associated with operating the agent network.
A solution for agency banking makes use of chatbots and messengers to assist banks in reducing the amount of face-to-face contact that takes place between agents and their supervisors. Chatbots and messengers help reduce the amount of face-to-face contact that takes place between agents and their supervisors.
Because they are using the agency banking solution, financial institutions are now able to give real-time guidance and help to their agents whenever they need it. Because of this, the entire experience for their consumers will be improved, and they will also have the ability to expand their network of agency partners.
– Supports contactless payments
A robust agency banking solution makes it possible for banks and other financial institutions to conduct their business using contactless payment solutions like QR codes, optical character recognition (OCR), near field communication (NFC), and other technologies that are analogous to these in order to dispense with the requirement of direct human interaction.
In times of pandemic, it is the duty of the financial institutions that depend on biometric verification to adopt an unusually high level of vigilance. Even after the devices have been meticulously scrubbed and disinfected, there is still a possibility that some issue may remain with them. It’s possible that financial organisations can get around this issue if they use OTPs. Instead of handing the customer a paper receipt, they could instead send the digital receipt to the customer through email or text message.
Wrapping Up
It is essential to every nation’s progress in the growth of its financial sector to put into practise solutions for agency banking that are both efficient and successful. If banks and other financial institutions adopt digital strategies for their operations, they may be more receptive to the contactless method of banking.
