We supported the Bangladesh Bank and Business For the Poor in Bangladesh (BFP-B) in this Nathan Associates-funded study to understand the prospect of using MFS for the benefit of micro-and small-enterprises (MSEs), including the banking and MFS agents. The broad objective of the study was to understand the use of MFS by MSEs, identify key challenges that limit the uptake of MFS by MSEs, and explore opportunities to address the needs of the MSEs by MFS providers.
Agency banking in Bangladesh: learning for other commercial banks
In 2018, BRAC Bank decided to offer banking services to the unbanked population and its branch customers in rural and semi-urban areas across Bangladesh. Offering services through agent banking channels was BRAC’s twin-pronged strategy to improve its customer services for SME loan customers. Agent banking allows BRAC Bank to offer customers a convenient alternative for loan disbursement and repayment while reducing dependency on other banks.
This case study charts the agent banking journey of BRAC Bank. It highlights the unique steps in the journey that ultimately helped to ensure channel sustainability. MSC supported BRAC in undertaking the journey under the agent banking project.
SBI: Enhancing the value proposition of SBI’s CSP network
Several customers of SBI prefer to transact at branches compared to their agent outlets. This is mainly due to the lack of trust in agents and the agent network of SBI. SBI intends to increase the trust of the customers in their agent channel and intends to increase the footfall of the customers at their agent outlets thereby reducing the congestion in their branches. MSC conducted a diagnostic exercise to understand the agent-level issues.
MM4P Support to Ncell Pilot
MSC provided technical support to Ncell in operationalizing the preparation, testing, and launch of a digital financial services pilot in Nepal. The assignment included the end-to-end implementation of the MFS platform for Ncell. We completed this by handholding Ncell on various aspects, such as technology deployment, banking partnerships, product design and pricing, systems and processes, agent management network, pilot-test plan, and launch and review of the pilot project.
MM4P Agency Banking Training
MSC developed a seminar and training course for government stakeholders in mobile payments and branchless banking suted to the nascent payments industry in Malawi. A payment diagnosis study conducted during this support helped understand the growth and challenges of digitizing government payments and distributing them through mobile and bank agents in the country. The roadmap of payment diagnosis has guided the client and other stakeholders to digitize the government payments in Zambia.
Setting up the network of MONEA agents for MediaSoft/BMS
Mediasoft is a Côte d’Ivoire-based IT services company that has developed a prototype of an electronic wallet called “Monea”. It intends to implement a network of agents to impact the mass market in Mali and French-speaking sub-Saharan Africa. MSC was engaged to conduct a market study to inform the design of the solution and onboarding for its financial institution partners. Mediasoft worked with the BMS through Monea to implement a decentralized tool. Through strategic partnerships and government involvement, this tool could contribute to digitize payments to make them more formal and offer employment opportunities for agents to youth.