4 methods to construct a future by way of agent networks

By: Mercus Chigoga

Background: With help from the Helix Institute of Digital Finance, Girls’s World Banking organized and co-led a coaching on company banking community growth in Tanzania. Girls’s World Banking is working with three establishments Diamond Financial institution (Nigeria), NMB (Tanzania) and NBS Financial institution (Malawi) to construct agent banking networks and enhance entry to banking companies, notably for ladies. The 4 day coaching convened leaders from our three financial institution companions for technical classes and peer change.

As somebody with a non-banking background who joined NBS Financial institution final yr, this coaching was a fantastic alternative to be taught finest practices in constructing company banking networks.

NBS Financial institution, one of many high three banks in Malawi, has recognized low-income populations as a key a part of our progress technique. Malawi is a primarily rural nation and the agent community will convey NBS Financial institution nearer to low-income clients for whom the financial institution department shouldn’t be simply accessible. We formally launched our agent community “Financial institution Pafupi” final yr and have a quickly rising variety of brokers who provide deposit and withdrawal companies

I noticed this coaching as an infinite alternative to be taught from company banking specialists and friends. Certainly the coaching met my expectations and in some respects even exceeded them! We recognized 4 key areas to prioritize as we refine our technique.

1. Discover new companions to extend our agent footprint – In constructing our agent community, NBS Financial institution has had hassle with recruitment as many potential brokers don’t have sufficient capital or appropriate {qualifications}. NBS’s recruitment technique is a hybrid mannequin the place we work with each company companions such because the Malawi Put up community in addition to immediately with retail brokers corresponding to neighborhood outlets. This coaching has taught us that we should widen our web in each areas and think about different companions corresponding to village cooperatives and financial savings teams in addition to petrol stations and telecommunications corporations.
2. Construct consciousness of company banking amongst purchasers – This coaching has impressed us to ask the query: “How many individuals know that company banking is inside their communities?” We plan on working with our advertising division to seek out options to create consciousness and drive utilization. Our purpose is to have individuals sit up for visiting our retailers!
3. Implement structured and constant agent monitoring – This coaching has proven us that NBS Financial institution has the mandatory instruments for agent monitoring, however we should enhance our construction and self-discipline. By means of this coaching we discovered the best way to construction the monitoring operate to create accountability throughout the group, the frequency with which we must always monitor brokers and the best way to use it as a possibility to construct a relationship with them.
4. Guarantee that agent incentives don’t have unintended penalties – We should ensure that the compensation of our brokers is barely encouraging behaviors we wish to promote. For instance, compensating brokers based mostly on the variety of transactions they conduct might incentivize fraudulent transactions.

One the nice issues is that Girls’s World Banking is working with banks throughout the continent and supplies us with alternatives to be taught from them. If we have been a financial institution working on our personal in Malawi we wouldn’t have entry to this. We’re trying ahead to implementing these classes at NBS Financial institution, persevering with to construct out our company banking community and growing entry to banking companies throughout the nation.