With the emergence of bank services integrated into mobile networks, banks have tried their level best to level up. However, these luxurious institutions are notorious for feeding on people’s savings in the name of maintaining the savings account itself.
Mobile money on the other hand is 100% reliable for keeping money unless one has a debt.
The problem with Mobile money is that the money is easily accessible and therefore prone to random impulsive use. In this article we are finding out if Agent banking can revive the saving culture.
What is An Agent Bank?
An Agent bank is one that extends their services closer to the local people by providing several mini branches.
Advantages of agent banking
- It’s easier to access for the client since the banking spots are very common.
- It is convenient since one doesn’t need to move so far or join a long queue.
- Agent banking encourages saving of small sums since it’s not bureaucratic in nature.
- It’s fast and less technical hence attractive.
- It’s open to all kinds of people unlike banks venues which feel intimidating to some people.
- Agent banking will reduce bank robberies since everything works online.
Disadvantages of agent bank
- Agent banking makes it easy to access funds hence poor financial discipline.
- It’s less trustworthy since it’s easy to fake an agent shop as compared to a real bank.
- It can’t outcompete Mobile money because most people send their money directly using their networks.
- If the interest charges don’t drop, people will remain with the same negative attitude toward banks.
- Banks won’t allow one to use all the money in their account.
- Government monitors banks, hence exposure of individuals wealth.
In conclusion, agent banking is a good initiative. However, it will require a lot of amendments in order to attract saving culture among people.
What do you think about agent banking?
So, what do you think?