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How to Make Optimum Use of Agent Networks (2/2)

Posted on by MSC

This Note discusses potential opportunities for business correspondent network managers (BCNMs) to make their networks viable, other than optimizing use of agent networks, enhancing the business case by undertaking business facilitation activities, and leveraging customer service centers (CSC) infrastructure, which were discussed in India Focus Note 97.

The note highlights the need for BCNMs to be innovative to identify opportunity areas, expand their service portfolio, and offer a winning customer proposition. A focus shift to better leverage agent network infrastructure is also essential. Opportunities that BCNMs can pursue include:

Offering generic payments solutions such as over the counter money transfer, remittances, ticketing services, and utility payments;
Offering customized payments solutions such as government benefits transfer, payroll processing, MFI loan disbursements, and repayments;
Selling third party products such as insurance, pension products, and electronic top-up for mobile and DTH.
The note states that some of these opportunities are evolving and more complex to implement, while others are straightforward. BCNMs need to undertake the next steps to identify, assess fit, customize, and roll out additional products to translate these opportunities into revenue streams.

How to Make Optimum Use of Agent Networks (1/2)

Posted on by MSC

“This Note explores opportunities for business correspondent network managers (BCNMs) to make their agent networks viable, ensuring stability of deployments, and a win-win value proposition for all stakeholders. It discusses the need to optimize use of agent networks and enhance their business case through product diversification.

The note states that business correspondent agents in India will need a compelling business case to stay motivated and actively engaged, as deployments mature and revenue from account opening dries up. An institution may choose between various opportunities to meet agent expectations, depending on its operational context. The note highlights four broad options that BCNMs can explore to enhance viability of agents. They are:

Selling and servicing asset and liability products of partner banks;
Offering generic payments solutions;
Offering tailor-made payments solutions for businesses;
Selling third party products.

Moreover, under the national e-governance plan, Government of India aims to provide government to consumer (G2C) and business to consumer (B2C) services through a network of customer service centres (CSCs) in the country. Leveraging the CSCs infrastructure can be a significant opportunity for agents and BCNMs alike.

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Term Deposits: Rural Clientele Ask For More

Posted on by Parul Tandon

Term deposits are one of the most common means of investment across the world – this also holds true in the rural sub-districts of Java. A majority of rural clients prefer term deposits in commercial and rural banks because of the perceived guaranteed safety and assured return. This Note highlights the experiences of rural banks in mobilising term deposits, the issues and challenges they face, and the strategies adopted by them to revive their portfolio and growth. This therefore also offers an inadequately realised growth potential for rural banks. Rural banks can develop an edge over commercial banks to capture term deposits. BPRs offer higher interest rates, lower minimum deposits, usually do not charge penalties on early withdrawals, and have convenient local offices. However, to develop and maintain a competitive edge BPRs need to understand their target segments and fine tune their products, services, and marketing efforts. This calls for better market intelligence as well as committed and capable institutional resources.

BPR Arta Kencana – Loan Product Development for Onion Cultivators

Posted on by Parul Tandon

Agricultural loans are amongst the most difficult to design and deliver. As part of its expanding operations in Indonesia, MicroSave worked with BPR Arta Kencana to design a loan tailored for the needs of onion cultivators Java. Based on the field research outcomes, a loan product prototype was designed to respond to clients’ preferred attributes such as competitive interest rate, easy collateral requirements, flexible repayment terms, simplicity in documentation, swift processing of loan applications etc. and to build in a savings component with an option for life insurance cover. The prototype also addressed situations of financial distress/crop failure. The design and testing process, as well as the final product itself, holds important lessons for all those involved in agricultural financing – across the globe.

Learnings on customer behaviour, product uptake and agent management

Posted on by MSC

Deepak Chandnani, CEO of Obopay Inc., talks about their partnership with Nokia and their m-banking launch in India with Nokia Money three years ago. Nokia Money started out as a pilot in two cities and has now been rolled out to the National Capital Region.

Agent network for remittances and mobile wallets

Posted on by MSC

David Hunter is the CEO of Ukash, a three-party payment scheme which allows people to buy products and services on the internet through e-commerce facilitated by Ukash merchants. Ukash has 3500 thousand merchants who are directly connected to their payment scheme and 420,000 locations where customers can buy Ukash vouchers across 51 countries.

David talks about the opportunity to leverage their agent network to offer wider financial services such as remittances and mobile wallets. He also discusses about competition in this space and shares experience of managing large and geographically widespread agent networks.