5 Things You Need to Know About Choosing an Agent Banking Solutions


The growth of internet service provision has empowered many banks to offer their products and services to their customers irrespective of location. This has led to the emergency of branchless banking, or better known as agent banking solutions.

Most banks embrace agent banking solutions to extend their reach and maintain their stranglehold on the customer base. This type of banking allows traditional banks to extend their network of branches. The banks conduct their operations through authorized agents in a more cost-efficient manner.

Understanding Agent Banking Solutions

For customers, choosing a reliable agent banking solution is key in cementing relationships with their preferred financial institutions. Therefore, it’s important to better understand agent banking solutions before committing to their products and services. Here is what you need to understand about agent banking solutions.

They Operate as a Go-Between

Agent banking operates as a go-between for individuals or businesses seeking to venture into business in other countries. You can use them when applying for business loans or any form of financial aid. The agent bank can represent one bank or many banks in cases that involve offering group loans.

They Can Be Your Partner on Different Offerings

Agent banks act as their mother banks and are always willing to partner on various offerings. Their specific roles and offerings depend on the arrangement and relationship made with you as a client.

Therefore, apart from relying on an agent bank for managing funds in a deposit account, they can also support you with other offerings such as enabling letters of credit or covering new credits.

Agent Banking Solutions Come in Different Forms

Many agent banking solutions are all eligible to service your financial needs irrespective of where you are.

Foreign Agent Banking Solutions

This involves foreign banks that are sanctioned to conduct business on behalf of their parent bank located in another country. Most of these agent banking solutions are subjected to the regulations that govern other banking solutions in the land they are operating.

Investment Banks Agent Banking Solutions

In most cases, Investment banks offer agent banking solutions on established investment deals that include syndicated loans.

Agent Banking Solutions and Mobile Operators

The increased adoption of mobile phone usage has also led to many banks opting for mobile banking as an agent banking solution. Most banks have embraced working together with mobile operators to facilitate mobile transactions.

The operators offer USSD connectivity, SMS, bill payments among other processes that allow consumers to perform their banking from the palm of the hand.

Agent Banking Solutions and Businesses

Some agent banking solutions can also allow businesses to delegate administrative tasks, where they can handle a business’s finances. These agent banking solutions are essential for businesses that want to expand their geographical presence.


Agency banking is changing the banking industry all around the world. Offering seamless solutions for banks and customer allows banks to expand their services and reach. The solutions also allow unbanked customers to get easy access to the financial institutions near them.

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