When we say branchless banking providers we typically think of banks and telecom companies, even though the arena is populated with different kinds of third-party players who enable the provision of financial services (loans, savings, insurance, etc.) at the doorstep of numerous communities. Salah Goss and Ignacio Mas recently listed four types of branchless banking service providers at the CGAP Blog, the works of which have been summarized below.
- Technology Providers create solutions that allow the inter-operability between different banks and telecom firms in the financial services field. They may venture into software (mobile banking solutions, information systems, mobile applications, communication gateways) as well as hardware solutions (POS devices and switches) that support the branchless banking platform.
- Bill pay companies and airtime reselling platforms can tweak their service offering to include basic financial services to the masses (loans, savings). They already have the required equipment (POS systems and cash-management systems) to penetrate the mobile commerce space.
- Distribution companies have an extensive network of retail agents, who not only operate on cash but also share the end-consumer’s demand pattern with those companies, in detail. The existing logistical infrastructure which is used to frequently deliver low-value and high-volume goods, as well as this intimate knowledge of the consumer, can be leveraged to deliver financial service.
- National branded retailers enjoy good brand recognition and market penetration, in both premium and non-premium locations. They can create additional revenue sources by offering financial services to their clients, which will draw in more traffic to their outlets.
To read more about these options, visit the CGAP Blog.
