ATM withdrawals have continually slowed because Nigerians have embraced the convenience of bank agents, also called POS agents.
Driven by the agency banking framework, financial institutions and banks now have human agents nationwide who help them deliver essential financial services.
The most popular of these services is cash withdrawals, which has led commercial banks in Nigeria to shut down more than 200 branches and more than 600 ATMs in 2020.
What does this mean for retailers?
The success of the agency banking model in Nigeria should be good news for retailers who can use their setup to launch another business.
The low barrier to entry means that retailers, without much cost, can quickly set up to become agents alongside their existing trades. According to a June 2020 report by EFInA, 60% of Nigerian agent outlets operate agency businesses alongside their existing business.
Despite the success and popularity of the Agency Banking model, it has still not scratched the surface of its potential. There’s more work to be done, and Fincra is at it.
To further give access to financial services across the country, infrastructure is needed to make it easier for people to build agent networks.
So, one of the products we have at Fincra today is a white-labelled agency banking as a service platform. Fincra’s solution allows retail businesses with distribution networks to roll out a robust Agency Banking network built on our infrastructure without a single line of code.
With this, retail businesses can add another revenue stream, increase customer satisfaction and improve financial inclusion.