The evolution of agent networks in Africa

The evolution of agent networks in Africa

March 27, 2019    
Case study: Kenya

The majority of mobile-money flows continue to be dominated by cash-in and cash-out (CICO) transactions. This has led to the increasing belief that widely distributed networks of agents are essential access points for consumers, especially in rural and remote regions, to facilitate CICO needs.

It is accepted knowledge that providers struggle to identify rural agent network strategies that can accommodate both the consumer and the business case.

This report provides insights into how agent networks evolve within the context of these constraints by using geospatial data to map the location of agents relative to other cash points, as well as surrounding populations, between 2009 and 2015. Using Kenya as a key demonstration case study, this study explores three core questions:

  • What growth strategies have agent networks deployed over time?
  • How far have agent networks managed to increase the geographic reach of formal financial services?
  • To what extent has the expansion of agents improved access to financial services for consumers?

The report concludes by providing short-, medium- and long-term recommendations that speak to the specific role of both financial service providers and regulators, or donors, to strengthen national cash management systems and digitise key value chains for the development of integrated digital financial service ecosystems.

 


Download the case study Size 1.8KB

Similar Articles
The application of behavioural interventions
As we explore how behavioural science can narrow the gap between customer intention and customer action, we have started to look at examples from s...
Central bank digital currency (CBDC) and financial inclusion
What can CBDC do for emerging markets: a case for mobile money Central banks have st...
Four things we learned at the 2019 Seamless Southern Africa Conference
Understanding the state of digital payments in sub-Saharan Africa. The ...