The Future of Mobile Money and Agent Banking
Though we live in the internet era, yet all are not exposed to digital banking networking. Hence agent banking has come forth to facilitate the process. In fact, mobile money has created job opportunities for banking agents.
They are yet to know and understand the benefits of credit/debit cards, and savings account. But things are changing at a fast pace and in the future, more people will join the bandwagon of digital awareness.
Depositing and withdrawing money from the savings account should be a phenomenon which is easily understood by the people. Mobile money can be the best solution. This system encompasses people, even those who were financially excluded, and agent distribution networks to deliver best alternatives.
Mobile money is trying to include the people in the rural areas where banking facilities are still not available. Hence agent banking has come forth to facilitate the process. In fact, mobile money has created job opportunities for banking agents.
Where and how did the concept of mobile money start?
The concept was found and brought forth by two companies namely Smart Communications and Globe Telecom. Since 2005, both the companies were engaged in transferring mobile money in the Philippines.
It was followed in Africa by Vodafone in 2007 in the form of M-Pesa. In Kenya, more than half of the population was not exposed to financial services. M-Pesa was aimed to revolutionize the mobile banking segment. The result is that mobile money has become a worthy business model with impressive results.
What is Agent banking?
In rural areas, the presence of banking institutions is limited due to operational costs. Even the nearest bank branch maybe a few kilometers walk for the villagers. In such a situation, agent banking has come forth as the best solution. It is a network of banking agents who act as physical bank branches. These can be e-wallet providers, retailers, etc.
There is no doubt that digitalization is here for good and mobile money is the future. With the growth of Smartphone technology, it has become witnessed enormous growth. The banking industry also took some time to fully understand the concept of mobile money.
With the help of technologies and Smartphone, several new businesses and likewise models have come to the fore. Agent banking is being recognized by telecom operators and banks as a great medium to reach the people in all areas.
Why is agent banking popular?
The three stakeholders in this situation are banks themselves, agent bankers, and customers. All of them will benefit from the network.
Moreover, the concept is cost-effective and cheap to establish. This is because setting up a bank branch has high operational costs than agent banking system in rural areas.
More customers are added to the network. Instead of increased physical banks in the rural area, the banking network is increased with the help of agent banking.
Job opportunities are created as agents are included in the network. This is because banking agents are able to generate income through the addition of customers in the network.
The future of mobile money transfers
The future of mobile money is very bright. It has evolved as a very big service. Telecom operators allow the people to make payment of their bills on one side and access insurance, loans, etc. on the other hand.
With the help of mobile money transfers, people living in remote and rural areas are able to make deposits, transfer funds, withdraw money, etc. and all this is handled directly through mobile money.
Several rural areas have come under the banking network and have been exposed to the digital world.
With the increase in digital transactions, mobile money providers will access a bunch of new revenue-earn avenues.