By Jacqueline Foelster and Amin Khairy; published by the Center for Financial Inclusion; June 2019; 20 pages; available at https://www.centerforfinancialinclusion.org/leveraging-technologies-to-improve-the-quality-and-maximize-the-productivity-of-agent-models
As financial services providers (FSPs) seek new ways to meet the needs of underserved customers at a low cost, the authors observe a trend toward the use of agents. Through various agent models, financial institutions “designate authority and responsibility to banking agents to deliver financial products and services” with the aim of accessing customers in “remote or hard-to-reach areas.” Banking agents may include entities such as third-party financial service providers, mobile network operators, retailers and contracted individuals.
Based on insights provided by stakeholders such as FSP executives and a review of previous literature, the authors identify ways technology can be used and adapted to improve the quality and productivity of “agent networks.” The study addresses both shorter and longer time horizons, as well as the varying perspectives of financial institutions, agents and customers within networks.
Among the ways FSPs are using technology to enhance agent models are the use of apps for mobile phones. One example is using apps to train agents. Another is to enable a customer to “act as an automatic teller machine (ATM)” by matching customers who need cash with those who have extra cash. FSPs also are using data analytics to monitor the activity of their agents to gain insight into agents’ productivity, as well as applying analytics to the evaluation of loan applications to decrease agents’ loan-processing time.
The authors conclude that technological innovation can, in fact, be leveraged to help financial institutions meet the needs of their customer base efficiently while expanding the reach and quality of their services.
By Jolene Khor, Research Associate
Sources and Additional Resources
Center for Financial Inclusion publication: “Leveraging Technologies to Improve the Quality and Maximize the Productivity of Agent Models”
https://www.centerforfinancialinclusion.org/leveraging-technologies-to-improve-the-quality-and-maximize-the-productivity-of-agent-models
Center for Financial Inclusion homepage
https://www.centerforfinancialinclusion.org
Accion homepage
https://www.accion.org
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