Agents play a key role in retail banking

The Key Role of Agents in Retail Banking

Ghanaian digital bank Affinity is raising $8 million in funding as it plans expansion for its MSME-focused business. It started out by acquiring a microfinance bank in 2020 and building a digital proposition on top.

Founder and chief executive Tarek Mougaine said his aim was to build a "full-fledged retail bank for MSMEs, similar to what Santander, Lloyds, or Chase Bank offer in Europe and the U.S. -- but tailored for Africa's majority," according to TechCrunch.

The bank, which says it earns 90 per cent of its income from lending, relies on Ghana's well-established agency banking network for onboarding.

"These agents, about 30 of them, meet small businesses in person, onboard them to the app, and help bridge the trust gap for first-time digital banking users.Out of its 50,000 customers, 26,000 joined through the agency network, and 24,000 signed up using the mobile app. Notably, 55% of agent-acquired customers have transitioned to the app, showing strong digital adoption after onboarding."

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