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
women’s 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.

The strategy combines the best of high-touch and high-tech. lowering costs. bringing banking into the most remote and underserved areas. Or. bringing banking into the most remote and underserved areas. as Bank Mandiri puts it: “technology-enabled but with a human face. as Bank Mandiri puts it: “technology-enabled but with a human face. . lowering costs. Or. At their best. and increasing service points. 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 customer has the comfort of doing business with someone from the community who can help build familiarity with both digital technology and fnancial services. 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.At their best. and increasing service points. The strategy combines the best of high-touch and high-tech.