1. THE AGENT BANKING &
DIGITAL FINANCIAL SERVICES
CONFERENCE – 14 JULY 2016

2. TOPIC
Incentives to Lower Cost of Service, tap into informal
sector and access remote rural areas, through
Leveraging on Agency Banking
This paper will analyse the impact of Agency Banking
in the informal sector and rural areas as a low cost
digital channel as opposed to the use of traditional
structures i.e. bank branches. Focus will be on what
the Financial Institutions have done and challenges
they are facing in providing Agency Banking services
to these segments.

3. DEFINITION
Agency Banking refers to the provision of a specified range
of financial services to customers on behalf of a registered
banking institution by a contracted Agent.
Such Agents include Retail Outlets, Clothing Stores, Food
Outlets, Pharmacies, Hospitals, Schools, Service Stations
etc.

4. INTRODUCTION
1. Agency Banking has helped other countries like Kenya,
South Africa, Latin America etc boost their financial
inclusion strategies
2. The informal sector participate in economic development
3. Agency Banking is 2 years old in Zimbabwe and
currently 5 banks are involved

5. SERVICES OFFERED
1. Opening of low cost accounts
2. Cash deposits and withdrawals
3. Balance enquiry
4. Generation and issuance of Mini statements.
5. Sell of pre-paid electricity
6. Internal Funds Transfers
7. DSTV subscriptions
8. Bill payments (Utilities, taxes, rates, subscriptions)

6. WHAT FINANCIAL INSTITUTIONS
HAVE DONE TO PENETRATE
REMOTE AREAS
1. Since the introduction of agency banking financial
institutions have set up more than 3 000 operational
agents throughout the country.
2. Opening of over 200 000 low cost accounts.
3. Development of innovative low cost products for the
low income segment.
4. Development of digital delivery channels in rural areas.

7. WHAT FINANCIAL INSTITUTIONS HAVE
DONE TO PENETRATE THE REMOTE
AREAS (CONT’D)
5. Improving financial literacy among the targeted group.
6. Advertising on behalf of the agents through different
channels namely print, digital, radio etc.

8. INCENTIVES TO LOWER COST OF SERVICE,
TAP INTO INFORMAL SECTOR & ACCESS
REMOTE AREAS
1. Bringing the products and services at the customers’
door steps and reduce transport costs.
2. Using agents who are familiar to the customers
3. Reduced know your customer requirements, only IDs
are required when opening the accounts
4. Lower transaction costs and zero minimum balances
5. Promotions

9. BENEFITS TO CUSTOMERS
1. Lower transaction and transport costs.
2. Longer opening hours (compared to banks).
3. No queues than in bank branches.
4. Bank at the customer’s door step.

10. BENEFITS TO CUSTOMERS (CONT’D)
5. One-stop shop for banking and other services
6. Easier access to the Bank by the less literate and the
very poor customers who would otherwise feel intimidated
to visit bank branches.

11. BENEFITS TO AGENTS
1. Increased sales from additional banking services and
foot traffic.
2. Differentiation from other businesses.
3. Reputation from affiliation with well-known financial
institutions.
4. Additional revenue from commissions and incentives.
5. Diversification.
6. Opportunity to leverage and sweat the existing
infrastructure.
.

12. BENEFITS TO FINANCIAL
INSTITUTIONS
1. Increased customer base and market share.
2. Increased coverage with low-cost solutions.
3. Increased revenue from additional services.
4. Improved service through decongestion of branches.
5. Easy expansion at lower costs.

13. CHALLENGES
Despite the numerous gains of Agency Banking, herewith an
outline of challenges faced.
1. High costs of infrastructure. E.g. POS machines, laptops.
We appeal to the government to consider reducing duty on
such equipment.

14. CHALLENGES (CONT’D)
2. Some remote areas have poor or no connectivity.
3. Current cash shortages
4. Lack of a national digital database on which banks can
ride for KYC details such as proof of residence, photos
and employment history.

15. WHAT CBZ BANK HAS DONE
• Mobilised more than 100 thousand low cost accounts.
• Opened more that 120 Agency Banking Agents and an
additional 105 Zesa Agents.
• Launched Mobile App where both customers and non-
customers can open wallets. Such wallets will enable the
customers to carry out financial transactions like funds
transfers, making bill payments among other functions. L

16. CONCLUSION
WE ENCOURAGE ALL RELEVANT STAKEHOLDERS TO
SUPPORT THE EXPANSION OF AGENCY BANKING AND
OTHER FINANCIAL INSTITUTIONS TO PARTICIPATE.

17. THANK YOU