Being a sub-segment of the conventional insurance industry, microinsurance has imbibed both the positives and negatives characteristics of the larger industry, specifically in the life insurance segment.
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Agriculture value chain financing – Regulations
The paper is focused on the institutional framework governing agricultural finance and various instruments available for financing agricultural development at several stages along a specific value chain. Various enabling policy and regulatory aspects that have evolved over the past decade are then discussed.
Structuring and Managing Agent Network – II
The Briefing Note # 136, “Structuring and Managing Agent Networks – I”, reviewed agent networks managed by MNOs; and contrasted and critiqued the different strategies followed and its impact. This Note focuses on bank managed agent networks – either directly or by outsourcing to third parties. It is quite evident that there is no ‘one size fits all’ in agency networks. The strategy and approach of the same institution might be a roaring success in one environment but a complete disaster in another. Given that a poorly functioning agent network can completely mar the business model, it is inevitable for institutions to have a laser sharp focus on; and to constantly review, re-invigorate and re-invent the agency channel.
Structuring and Managing Agent Network – I
Agent network is a vital constituent of any system delivering electronic/mobile banking services. According to MMU mobile money tracker, there are 140 live mobile money deployments globally and 104 planned, excluding other electronic banking (non-mobile based) deployments. However, very few of these can be considered truly successful. Improper design, structuring and mismanagement of agency networks are often seen as the root cause of failure. MicroSave’s intensive research in agent networks substantiates this and emphasises the need for significantly greater focus and attention on alignment of agent network management with institutional strategy.
This Note, and the next in the series, review and critique the agent networks of diverse organisations in different contexts and geographies. The 7 case studies cover agent networks managed by banks (directly or through third parties) and by MNOs in both bank-led and MNO-led markets.
Training E/M-Banking Agents: What is Missing?
This Note briefly discusses the reasons for negative feedback received often on agent training, the profiles of the agents, and new areas to be considered in agent training programmes. It highlights the three major types of agents: 1. Transactions or cash-in/cash out agents; 2. Sales or full service agents and 3. Super agents. The note further discusses the different training content required by each. It concludes that agent training is an essential foundation of a robust, trusted and ultimately successful agent network.
How to Make Optimum Use of Agent Networks (2/2)
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.