Cash-in and Cash-out service in English terms refer to the deposit and withdrawal of money. These are the basic financial services that Agency Banking (POS) agents deliver in Nigeria.
The everyday use cases of cash-in and cash-out services in Nigeria are numerous. With banks and financial institutions unable to serve the entire population, they use agents to deliver services to the last miles- the rural and semi-urban regions.
This model of delivering financial services has become critical in the Nigerian financial sector since the CBN released its guidelines on the operation and management of Agent Banking (Agency Banking) which is the overarching term used to describe cash-in and cash-out services.
With Know Your Customer (KYC) still difficult at that grassroots level, these agents can only provide basic financial services like deposit and withdrawal, which is cash-in and cash-out.
This model of banking has been beneficial to the whole financial ecosystem. It has helped banks and financial institutions to reach more customers, giving convenience, continuity and flexibility to the unbanked population. These cash-in and cash-out service agents also drive financial inclusion, which is critical to economic growth.
There’s also the benefit of employment, allowing these agents to make money and earn a living.
Everywhere you look around in Nigeria’s rural and semi-urban regions, you see banking agents with POS devices delivering financial services and earning commissions. Even local entrepreneurs now double as cash-in and cash-out service agents.
Cash-in and cash-out service agents have made so much impact in the Nigerian financial sector, which is why the new CB policy has been hard for them to take. This policy prevents them from having access to cash to deliver financial services to those who cannot get them elsewhere, no matter what the CBN does at this moment.
The show, however, must go on, and cash-in and cash-out agents will continue to deliver financial services. Another option is to pay processing fees to the bank for more cash and increase customer charges.
Also, while embracing a cashless economy, cash-in and cash-out service agents are essential in helping people turn their cash assets into digital assets and help people with affordable and accessible ways to switch between the worlds of cash and digital currency.
Cash-in and cash-out services will continue to be important in our world. Businesses, banks and financial institutions will continue to use that model of financial services to reach more customers and add another revenue stream to their businesses.