This Note is the first of a two-part series, which provides some perspective on how individual business correspondents (BCs) and institutional BCs are perceived by clients and banks.

This Note approaches the question from the client’s perspective. It concludes that institutional BCs have the advantage of delivering better on most of the key parameters: trust and customer relationship; quality of service delivery; consumer protection and cash availability, primarily because the BCNMs are dedicated to, and focused on, the success of the overall system. In the case of individual BCs, clients may find that the local bank branch does not have the motivation or the resources to provide dedicated teams to provide superior service. This is especially true in India where the banks prefer to outsource their priority sector/financial inclusion activities (for both credit and savings).

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