Mr Budiman et al present several examples of successful implementations of rural cash-in / cash-out agent networks, which enable customers to exchange cash for electronic money and vice versa. According to the Global Findex, 1.4 billion adults are financially excluded, and 31 percent of this group lives far from any financial institutions. Rural CICO agent networks are one way to address this gap in access to financial services.
Bancolombia invested in rural CICO agents in Colombia, allowing these private ventures to reach a significant number of rural customers. Without such an investor, rural enterprises may find the up-front cost of becoming agents too high. Government subsidies can help, as can technical assistance from domestic and international investors.
To expand rural CICO agent networks, the authors suggest that providers of digital financial services: (1) carry out a comprehensive evaluation of the rural market in question; (2) consider outsourcing agent training to a third party; (3) in addition to training rural agents, create a salesforce to build rural demand; and (4) focus on engaging women as agents.
Bancolombia invested in rural CICO agents in Colombia, allowing these private ventures to reach a significant number of rural customers. Without such an investor, rural enterprises may find the up-front cost of becoming agents too high. Government subsidies can help, as can technical assistance from domestic and international investors.
To expand rural CICO agent networks, the authors suggest that providers of digital financial services: (1) carry out a comprehensive evaluation of the rural market in question; (2) consider outsourcing agent training to a third party; (3) in addition to training rural agents, create a salesforce to build rural demand; and (4) focus on engaging women as agents.
This is a summary of a paper published by CGAP that was written by Achmad Budiman, Nadine Chehade, William Cook, Patrick Meagher, Alice Negre, Anand Raman, Corinne Riquet, Paul Reynolds.
Summary by: Pranav Agarwal
