Agent Banking Business Plan 2019/2020 | List Of Agent Banking In Nigeria
- 1 Agent Banking Business Plan 2019/2020 | List Of Agent Banking In Nigeria
- 1.1 How to begin An Agent Banking Business In Nigeria
- 1.2 How to Apply for Agent Banking Business In Nigeria
- 1.3 The Profit Analysis of Agent Baking Business
- 1.4 FAQS
- 1.5 Other Amazing Business You Can venture Into Today
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What’s Agent Banking? This is the delivery of financial service outside conventional bank branches, using non-banking agent(s) or a licensed deposit financial institution. Let me break it down to avoid causing confusion. Forgive me for those bogus words.
These individuals you see in remote places that handle transactions like sending of cash, receiving of cash, payment of bills are regarded as agents. They can even open bank account to individual depending on the bank the individual is working with.
As part of CBN strategy to increase financial inclusiveness of adult Nigerians and increase the number of Nigerians included in formal financial services to 80% and 70% respectively by 2020, their ultimate aim is to target the unbanked segment of the society hence, the introduction of agent banking.
Agent banking is a lucrative business and not very saturated like other business out there. It’s what we call a virgin business with lots of potentials capable of making a man rich and financially buoyant. In this article, I’m going to guide you on how you can start an agent banking business and make money here in Nigeria. If this is done well, you won’t ever regret it.
CBN Categorized Agents into 3 Simple Categories
- Super-agent – one who has other agent working under him
- A sub-agent – this agent is working directly under the super-agent
- Sole agent – this agent is alone and doesn’t answer to any agent
In agent banking, the agent need a device like card reading point of sales (POS) terminal for real time transaction.
How to begin An Agent Banking Business In Nigeria
1. You Need A Location
To start this business, you need a location around places where there are no bank branches. Remember, your target market is the unbanked and under-banked population.
2. An Android Phone
We have some cellphone POS that you’ll need your phone to operate. This kind of POS is built on Bluetooth technology.
3.Point of Sale Device (POS)
This is definitely the most important tool you need to run this business and make money. Agent banking business is most lucrative which POS. it doesn’t need any addition device before it can work.
How to Apply for Agent Banking Business In Nigeria
While writing this article, I made a lot of calls to numerous banks in Nigeria, to know their requirements one need to fulfill to become an agent. The first bank that I called was Zenith Bank and they told me bluntly that the major requirement is having an account with them, with a minimum duration of 6 months. Currently, they are test running the service.
However, more research proved that FCMB agent banking started over 3 years ago and they seem to be ahead of other banks. They have 142 agents as of July 2017.
A quick visit to FCMB agent banking page shows the address of all their agents all over the country.
According to FCMB, the following transaction can be carried out their agents
- Account opening
- Instant card issuance
- Cash deposit
- Cash withdrawal
- Funds transfer
- Airtime recharge
- Bills payments etc.
To register, try your bank first. Visit any of their branch, go to the customer care unit and make your enquiries. They will guide you on everything you need to become an agent.
Agency Baking Services And Commision
• Transfers (All Banks) YOU make N 150 per transaction guaranteed
• Cash deposit (All Banks) YOU make N 150 per transaction guaranteed
• Cash withdrawal (All Banks) YOU make N 150 per transaction guaranteed
• Recharge Cards printing (MTN 3%, Etisalat 3.5%, Airtel 4%, Glo 6%)
• Loan repayments
• Bulk SMS 10% commission
• Data bundles (MTN 3% , Etisalat 4.5%, Airtel 4%,Glo 4%,Smiles 3%, Spectranet 4%)
• Bill payment (Dstv 2%, Gotv 2%, Tstv 2%, Phcn 2%, Startimes 2%,Etc.)
• Prepaid voucher sale (WAEC 6%)
There are numerous seminars and training on agent banking. Most of these training is to help[ you with all the knowledge you need it succeed in agent banking. A little research on Google will pull up a lot of results. Give it a try.
The Profit Analysis of Agent Baking Business
Average Daily 30 Transactions at N150 Per Transaction,
If the Agent is Charging a Transaction Fee of N200.00 for DEPOSIT and WITHDRAWAL from BANK Transactions. he will make a lot. See the maths below.
30 Transactions X N150= N4,500.00
N4,500 per Day, for 25 Working Days = N105,000.00 Per Month
The good part is; you can make more money, this is just the minimum an agent is expected to make in a month. With more staff working with you, you will make such amount in a matter of days and not month.
MPOS is a mobile point of sales (mobile POS) that operate using Bluetooth enabled smartphone. It comes with an android app. A PinPad, (chip reader) is connected to a mobile device via Bluetooth. This can be used in case you were unable to get the bank POS.
Can I partner with someone?
Yes you can. This is your business and you must do everything possible to expand or grow it.
Which location is most suitable for agent banking business?
Agent banking booms in places, usually rural places where the people have to travel a long distance before they can bank. By establishing a an agent banking business in such places, you will no doubt end up rich.
Which bank has the best package for agent banking services?
Majority of people will agree that FCMB is the best.
What’s the difference between agent banking and mobile banking?
In simple terms, agent banking has to do with serving the unbanked and underbanked population with a either a POS or MPOS. While mobile banking has to do with banking with your smart phone, with the help of apps like PocketMoni.
Finally, Agent banking business is a virgin lucrative business that has made so much money to those who knows how to play their game very well. The most important factor that ensures success is your location. Once you’re located in an area where there are no banking services around, you’ll make tons of money in return
That’s the much we can take on the topic “Agent Banking Business Plan 2019/2020 | List Of Agent Banking In Nigeria”.
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