Photo by Allison Shelley for CGAP Photo by Allison Shelley for CGAP

Agent Networks for Digital Financial Inclusion

Most digital financial services users around the world live in cash-based societies. They often are paid in cash and conduct many of their everyday financial transactions in cash. They may be able to use digital services to meet some of their needs, such as sending money to a family member or getting a small loan, but not others, such as buying produce at the local market. These users require a cheap and easy way to switch between the worlds of cash and digital currency. Local storeowners doubling as cash-in/cash-out (CICO) agents have typically served as this bridge. The CICO services they offer play an essential role in building digital financial services at scale. Yet digital financial services providers have struggled to establish viable CICO agent networks in rural areas, where sparse populations lead to low transaction volumes and weak incentives for entrepreneurs to serve as agents. This makes it difficult to advance financial inclusion at the last mile.

How are new agent network business models empowering agents and contributing to financial inclusion in Indonesia? Find out in this video produced by CGAP, the Bill & Melinda Gates Foundation, IDEO Colab, and the Indonesian Fintech Association.

Global evidence gathered by CGAP and the Bill & Melinda Gates Foundation shows that a variety of emerging CICO models have improved agent viability in rural areas. We find that some these new models diversify the range of customer transactions that agents can facilitate, which provides them with extra sources of income. E-commerce companies in Asia are leading the charge in this respect, building agent networks on top of distribution channels originally meant to deliver goods and services traded online. New types of agent network managers are also enabling agents to facilitate many public and private service transactions for customers across Africa and Latin America. Overall, our analysis of the global experience with CICO agents reveals six principles for more inclusive agent networks.


Simple infographic
Click on graphic to enlarge

Putting principles into practice for stronger agent networks

In the resources below, CGAP provides practical recommendations for how financial services providers, policy makers, and regulators can deploy these six principles all the way to the last mile and expand financial inclusion. Developments in countries such as India and China demonstrate that when the public and private sectors work together, they get the best results.



Building out rural agent networks isn’t just about harnessing digital innovations. Global experience shows that it’s also about the public and private sectors working together.

A recent CGAP publication identifies six principles for viable agent networks in rural areas. In this post, we look at how where Indonesia stands against these principles.

Getting cash into and out of the digital system remains one of the main barriers to financial inclusion in emerging markets — even in markets where digital financial services are on the rise.

E-commerce doesn't come up very often in conversations about agent networks for digital financial services - but it should.

Agent regulations often treat agents like extensions of bank branches. But the reality is that many agents conduct a far more limited range of financial activities and should be regulated differently.
Slide Deck

Proximity Matters: Five Case Studies in Closing the CICO Gap

Learn about the innovative approaches that policy makers and providers are taking to build rural agent networks in Brazil, India, Mexico, and Tanzania.
Related Resources

Regulations often give big financial institutions near total control over mobile money cash-in/cash-out networks. Changing the rules would enable small entrepreneurs to play a bigger role in building last-mile cash networks.
Blog Series

GSMA's 2017 State of the Industry reports a global total of 5.3 million agents, an impressive sixfold increase over the 886,000 agents in existence just five years ago. However, the bulk of digital financial services (DFS) agents are in urban or peri-urban areas, and research by


Empowering mobile money agents to provide exceptional customer service can be challenging. In Indonesia, BTPN has an innovative solution that uses gamification.

Universal coverage is a fundamental building block toward universal financial access. Last year Colombia announced that all of its 1,100+ municipalities had at least one banking agent serving customers in need of financial services. How did Colombia do it?

Beyond banking, mobile networks also use agents to sell airtime and offer other payments services. In 2005 Perú enacted agent banking rules, and since then a number of players and models have emerged.

This guide presents practical advice to providers on how to build a viable network of agents, which is a critical component of a branchless banking service.