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Are Commercial Agent Banking Services Worthwhile For Financial Inclusion?

Developing countries across the world are focusing on rural development to assure the scaling of their economies. For the constant development of rural areas local bodies, government, and financial institutions play a crucial role. Financial institutions are responsible for leveraging support by easing financial inclusion for residents.

Financial Inclusion is described as the method of providing banking and financial solutions and services to every individual in society without any type of discrimination. In developed areas, banks can reach customers by opening various branches and ATMs.

However, the reason behind the inability for reaching out in rural areas is that opening a bank account in rural and emerging markets needs thus fails to generate enough ROI. Given below are key points for financial inclusion in an economy.

Here are a few points for financial inclusions in an economy:

  • Offering access to credit that can permit investments for small-scale businesses to people in rural areas.
  • Offering methods to save cash to mitigate future risks.
  • Providing access to trustworthy day-to-day payments to people working in informal industries in rural areas.

Why opt for Agency Banking?

Banks play a crucial role in authorizing financial inclusion in an economy. But due to problems such as the cost of delivery of a bank system and availability of resources, etc banks cannot reach out to such remote locations.

Agency banking solutions are a productive method to consist the huge unbanked and underbanked population into the banking system. Agency banking software necessitates developing a network of agents or non-bank retail providers that brings important facilities to the doorstep of remote places.

The agents carry point of sale card readers with barcodes, and biometric scanners or mobile phones that can be used to carry out multiple banking services like cash-in/cash-out, P2P money transfers, check balance, installments of loans, etc.

How can agency banking ease financial inclusion?

Growing scope in the rural banking field has led to a rise in the importance of agent banking. Agent bankers increase the reach of financial institutions at a very minimal cost while sanctioning financial inclusion.

Thus it is necessary to understand how and up to what extent agency banking solutions can promote financial inclusion. Let’s have a look at how agency banking is improving financial inclusions:

  • All basic bank facilities such as withdrawals, deposits, remittances, at the doorstep or a place close to the rural area.
  • Offering low-cost banking services and the branchless bank is facilitating for the rural areas.
  • Assuring round-the-clock availability as many rural banks branches work for a limited hour a day.
  • Provide bill payments and other utility payment facilities.
  • Growing the customer base for the banks by using their huge social contacts in remote areas.
  • Developing a good relationship with the rural customers and motivating them to make frequent use of banking services.
  • Introduce diverse banking forms through mobile banking technology.

Open banking is changing the payments landscape as they have realized that innovation is necessary. It regulations are pushing banks to open up their systems, reinvent their payments business model, and develop a medium showcasing a mix of in-demand goods and services that go beyond customers.

Open banking brings a lot of features to enhance the payment experience. From the customer side, open banking will sanction direct payments without sharing sensitive data at check out.

Open banking is an important strategy for financial firms to compete and flourish. Furthermore, open banking will authorize the development of previously unimaginable new goods and services.

Banks and fintech can merge efforts to provide services as features across new distribution channels.

Objectives of financial inclusion

  • Financial inclusion plans to assist people in securing financial services and products at economical prices such as deposits, fund transfers services, loans, insurance, and much more.
  • It objects to establishing proper financial institutions to serve the requirements of the needy people. These institutions must have clear-cut regulations and must handle high standards that are surviving in the financial industry.
  • There are various governmental agencies and non-governmental organizations that are dedicated to bringing financial inclusion. These agencies are concentrated on enhancing access to receive government-approved documents.
  • Many people live in rural areas or tribal villages who don’t know documents like pan cards, adhar card, licenses, etc. Due to the lack of all these documents, they are not able to avail any form of subsidies provided by the government.
  • Financial inclusion aims to develop and maintain financial sustainability so that during the hard times people have certainty of funds that they struggle to have.
  • Financial inclusion has various institutions that provide economical financial assistance so there is a plethora of competition and clients have a lot of options to choose from.
  • It also boosts awareness regarding the benefits of financial services for the economically needy sector.
  • The process of financial inclusion works toward developing financial products that are suitable for needy people.
  • Financial inclusion aims to offer personalized financial solutions to those whose financial conditions, household requirements, preferences, and income levels are minimal.

Some latest fintech alternatives that are used by people consists of crowdfunding, digital payment system, P2P, electronic payment, etc.

Some individuals in both rural and urban areas are using all these modern alternatives to banking. To save people from paying high fees at the bank, NBFC and fintech companies are planning together to come up with simple and swift banking processes that will terminate unnecessary charges.


Commercial banking service provides a hassle-free solution for customers, retailers, etc. With the help of advanced technology, people can now avail all the banking services at their doorstep.

To develop any country thoroughly financial institutions leads one of the main roles as with the help of these institutions people can get help. Financial inclusions can assist rural areas where banking facilities are not available. And they can also educate and motivate all individuals to start using banking services.

Even you can get in touch with top leading mobile app development companies for brilliant banking solution that will lower your operational costs and offers seamless banking services.


Nikunj Gundaniya, Product manager, one of the leading Agency banking solution providers, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.

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