Research & Analysis
Publication

The Use of Agents by Digital Financial Services Providers

Agents play a crucial role in lowering the cost of delivery to reach the unbanked and underbanked population. An increasing number of countries, especially emerging markets and developing economies, allow a diverse array of banks and nonbank institutions to distribute digital financial services through agents. This Technical Note focuses on regulating agent models within an enabling framework that fosters financial inclusion. It takes a detailed look at different approaches to agency agreements, eligibility requirements, rules on exclusivity, services that can be offered through agents, standards for different types and levels of agents, and agent management.