Zmoney

Agency banking is a branchless banking model designed to enhance financial inclusion by extending banking services to underserved areas. Through this system, appointed agents act on behalf of the bank, providing essential financial services to customers in their communities.

What is Agency Banking?

Agency Banking is a strategic approach used to bridge the financial gap by bringing banking services and products closer to individuals who may not have easy access to traditional bank branches. It empowers agents to perform banking transactions on behalf of the bank, enabling a broader customer base and supporting financial inclusion.

Services Offered by Agency Banking:

• Account Opening
• Cash Withdrawals
• Cash Deposits
• Funds Transfers
• Bill Payments
• Airtime Purchases

How Agency Banking Works

In the agency banking model, customers visit agent locations to conduct their banking transactions. The agents, acting as intermediaries, perform these services on behalf of the bank. Customers are charged service fees for these transactions, and both the agent and the bank earn commissions based on the volume of transactions.

Rewards and Incentives

Agents are incentivized with transaction commissions. The more transactions they facilitate, the more both the agent and the bank profit, creating a win-win scenario for all parties involved.

Project Goals:

• Grow the bank’s retail customer base.
• Provide financial services to the unbanked population.
• Increase accessibility to banking services and products.
• Promote awareness of retail banking solutions.
• Generate income from transaction fees.

Mobile App Transactions Through Agency Banking

1. Account Opening Process

Account Opening with BVN:

• The agent enters the customer’s BVN (Bank Verification Number).
• The system validates the BVN and retrieves the customer’s details.
• The agent enters the customer’s email and phone number.
• The customer receives an OTP (One-Time Password) on the mobile number provided.
• The agent inputs the OTP to finalize the account opening process.

Account Opening without BVN:

• The agent enters the customer’s surname, first name, and date of birth.
• Email is optional, but the mobile number is mandatory.
• The customer receives an OTP on the provided phone number.
• The agent enters the OTP to complete the account creation.

2. Funds Transfer and Deposits

Deposits to Zenith Bank Accounts:

• The agent receives cash from the customer.
• The customer’s account number is inputted and validated by the system.
• The agent enters the amount and narration.
• The agent inputs their PIN to complete the deposit.
• The agent’s till is debited, and the customer’s account is credited.

Deposits to Other Banks:

• The agent receives cash from the customer.
• The agent inputs the customer’s account number and selects the bank.
• The system validates the customer’s account details.
• The agent enters the amount, narration, sender’s name, and phone number.
• The agent inputs their PIN to finalize the transaction.
• The agent’s till is debited, and the customer’s account at the other bank is credited.

3. Cash Withdrawal (Cash Out)

• The agent inputs the customer’s account number.
• The system validates the account details.
• The agent enters the withdrawal amount.
• An OTP is sent to the customer’s mobile number.
• The agent enters the OTP and their PIN to complete the withdrawal.
• The agent’s till is credited, and the customer’s account is debited.

4. Bill Payments

Agents can facilitate bill payments for services such as Multichoice, Discos, and all Quickteller-supported billers. A service fee of ₦100 applies to each transaction.

5. Airtime Purchase

Agents can also sell airtime for all telecom operators:

• The agent receives cash from the customer.
• They select the telecom operator, enter the customer’s mobile number and the desired amount.
• The agent inputs their PIN to complete the transaction.
• The agent’s till is debited, and the customer’s mobile account is credited with airtime.

Conclusion

Agency Banking provides a seamless and efficient way to offer banking services to more people, especially in underserved regions. By leveraging agents and digital tools, banks can extend their reach, grow their customer base, and support financial inclusion, all while ensuring customers have easy access to essential banking services.