Target market of agent Banking

Banks are using e-money products, agents and payment systems as their main strategies to reach
unbanked segments and their target market include:

Low-income households.
For most of the banks in our study, the greatest focus is therefore on increasing transaction
volume and cross-selling a broad range of services to under banked, underserved Low-income
customers.

Small and micro businesses.

Banks find that serving small businesses fits both their social and business missions. Many banks
recognize the SME market as particularly underserved.

Rural and remote households.

Many banks see the potential for technology to provide access to customers in remote areas.

Customers transitioning from informal to formal status.

Affirming that the transition from the informal to the formal economy is essential to achieve
inclusive development and to realize decent work for all, and recognizing the need for Members
to take urgent and appropriate measures to enable the transition of workers and economic units
from the informal to the formal economy, while ensuring the preservation and improvement of
existing livelihoods during the transition

Women.

According to the Global Findex 2014, men have higher levels of account ownership than
women by an average of 9 percentage points in developing countries. Banks identify the
womens market as underserved and profitable, while also expressing commitment to
empowering women as entrepreneurs, consumers and investors, and removing cultural, legal and
other barriers they face in gaining access to financial services.

Hard-to-reach market segments.

Banks committed to CSR gave examples of targeting youth, persons with disabilities, minorities,
and farmers.
Credit-invisible.
Those without a credit history or with a poor credit score cut across many of the categories
above.
At their best, banking agents combine convenience and accessibility in a way that leapfrogs the cultural
and
other barriers customers encounter when doing business in a formal bank branch. The customer has the
comfort
of doing business with someone from the community who can help build familiarity with both digital
technology
and fnancial services. The strategy combines the best of high-touch and high-tech, bringing banking into
the
most remote and underserved areas, lowering costs, and increasing service points. Or, as Bank Mandiri
puts it:
technology-enabled but with a human face.

At their best, banking agents combine convenience and accessibility in a way that leapfrogs the cultural
and
other barriers customers encounter when doing business in a formal bank branch. The customer has the
comfort
of doing business with someone from the community who can help build familiarity with both digital
technology
and fnancial services. The strategy combines the best of high-touch and high-tech, bringing banking into
the
most remote and underserved areas, lowering costs, and increasing service points. Or, as Bank Mandiri
puts it:
technology-enabled but with a human face.