Agency Banking

Question 1

What is agency banking?

Answer 1

Agency Banking is providing limited scale banking and financial services to a bank’s existing customers and the unbanked population through engaged agents such as non-bank financial institutions, retail outlets, fuel station marts and other shops rather than a bank-owned branch.

Question 2

What are the available service offerings in agency banking?

Answer 2

1. Deposits
2. Withdrawals
3. Pay Bill
4. Pos
5. Interbank Transfers
6. Card Deposits and Card Withdrawal
7. Remittance: Rapid Transfer (Send & Receive), Western Union, MoneyGram & other, 3rd party MTOs (Receive only)

Question 3

What is the impact of agency banking for consumer banking?

Answer 3

1. Convenience
2. CASA deposits
3. Fees & Commissions

Question 4

What is the impact 0f agency banking for commercial banking?

Answer 4

1. Agent Deposits
2. Agent Liquidity Financing
3. Increase in Customer Base

Question 5

What is the impact of agency banking for corporate banking?

Answer 5

1. value chain collections
2. increase cost of switching
3. bank of choice

Question 6

What are the fees and commissions associated with the different services?

Answer 6

1. With remittances, customers are charged by RT send the agent receives 40% commission, this is negotiable
2. When depositing into bank accounts or prepaid accounts, customers aren’t charged but the agent receives 0.5% commission
3. When withdrawing from a bank account, customers are charged 1% and the agent receives 40% commission
4. When customers are issued a card they pay a standard 2o cedis and the agent receives a commission of 2 cedis
5. When customers open an express account, it is free but agent receives to 2 cedis per account created and gets an additional 1k for 2,500 accounts

Question 7

How does one become an agent?

Answer 7

1. Complete an Agency Banking application form and attach required documents
2. Sign 3 original copies of the Service Level Agreement
3. Open a Trading Account and Commission Account
   4.Credit account with initial deposit for the business
4. An Ecobank appointed Territory Manager will be assigned to you to facilitate:
   a. Branding of your outlet
   b. Provision of necessary logistics
   c. Training
   d. Liquidity and Operational support

Question 8

What are the kind of agents Ecobank seeks to enroll for agency banking?

Answer 8

retail outlets for goods and services such as:
1. Minimarts of the Oil Marketing Companies (OMCs)
2. Pharmaceutical shops
3. Distributors and Retailers
4. Existing Mobile Money Agents
5. General merchants