Financial inclusivity via agency banking has led to the development of rural areas in Nigeria and Africa. Rural areas such as villages and small towns need more access to financial services like cash withdrawals, deposits, bill payments, etc., but there are no commercial banks within their reach; hence, many unbanked people live in these areas. This situation also does not support the cashless policy in Nigeria. Amid these, agency banking emerges as a solution and an important part of developing these rural areas.

In this post, we will look into agency banking, its role as a development tool in rural areas, and how individuals in these places can become agents and continue the development.

What is Agency Banking?

A model where traditional banks engage the services of third parties and delegate authority to them to transact financial activities on their behalf is called agency banking. So, in the absence of traditional or physical banks, agents can set up their POS business in strategic places like your streets, the marketplace, and the parks. They help carry out banking transactions faster and seamlessly.

How is Agency Banking Contributing to Rural Development?

• Empowerment of Local Entrepreneurs: Many more people have taken up entrepreneurship in addition to the usual farming/hunting occupations in rural places. Many have become agents for financial institutions like Kashzoo. They set up stores or shops with banking tools like mPOS and POS at their disposal and carry out deposit and withdrawal transactions, bill payments, data top-ups and airtime recharge. The activities of these agents have turned their environments into local business hubs.
• Easy Access to Banking Services: Financial inclusivity has to be a major contribution of agency banking to the unbanked community. People in rural places no longer have to travel far into the towns or cities before they can carry out financial transactions. 
• Financial and Digital Education: Agency banking affords agents in rural communities the opportunity to learn to operate devices like smartphones, mPOS, POS, and Printers. They also learn to manage their finances effectively, which helps them become independent and confident about their finances.
• Encourages Local Economies: Agency banking facilitates transactions like savings, which can stimulate local economies. For instance, small business owners can expand their stores, and farmers can invest in agricultural inputs to gain more investment returns. With the burst of economic activities, the rural community is bound to prosper and develop.
• Community Cohesion and Resilience: Deposits, withdrawals, bill payments and other services are not the only activities that occur when people go to agents’ shops. Neighbours gather at agents’ shops to interact. They share and nurture aspirations and form connections, which fosters communal support and cohesion.

Kashzoo’s Interest

At Kashzoo, we are invested in the campaign for financial inclusivity and committed to the development of rural communities in Nigeria. Hence, concerted efforts are being made to reach more rural communities with our products and drive growth in these areas.

How to Become an Agent and Contribute to Community Development?

You can become a change agent in any community you are in while making ends meet. So, being a Kashzoo agent is more than having a job. Your action fosters economic and community growth, and here’s how to become an agency banker;

• Carry out research to be sure that your community needs an agency bank.
• Read and understand the regulatory framework to know what you are getting into.
• Identify and approach commercial banks or financial firms.
• Select financial institutions based on their reputation, support and services provided.
• Meet regulatory requirements to become an agent.
• Set up your physical local; if you can afford it, you may start with a table, chair, and umbrella for cover, kiosk, or shop.
• Get basic training on operating the devices from the selected financial institution.
• Ensure you go around the community to market your services to people.
• Launch your agency banking and start transacting for customers.
• Gather feedback from customers and improve your services if need be.

Our Take

Agency banking is one step among many that can bring development to rural communities by providing easy access to banking services, empowering local entrepreneurs, fostering community cohesion and resilience, and stimulating the local economy. By following the steps to becoming a Kashzoo agent, we can both contribute to the growth of our communities. Do not hesitate to contact our customer service should you need further assistance to become an agent.