Software Group sees big upside in agency banking despite COVID-19 shocks

Agency banking, once considered the future of the banking sector in East Africa, has seen a slowdown in recent years. However, Craig Albertson, the business development manager for Software Group, remains optimistic about the potential growth and impact of agency banking in the region. In a recent interview with CNBC Africa, Albertson discussed the current state of agency banking and its future prospects, highlighting the role of new technologies and digital solutions in driving the sector forward. According to Albertson, there are two distinct trends emerging in the industry. Some financial institutions have been hesitant to invest in new technologies due to the uncertainties brought about by the global pandemic. On the other hand, there are organizations that are embracing innovation and making strategic investments in technologies that cater to the evolving needs of customers in a post-COVID world. Albertson believes that agency banking has the potential to revolutionize the way financial services are delivered in Africa. He points out that agency banking offers a more cost-effective and versatile alternative to traditional ATMs. While ATMs come with high maintenance costs and security risks, agency banking provides a range of services beyond simple cash transactions, including client onboarding, account opening, and product sales. Despite mixed growth rates in different markets across East Africa, Albertson remains confident in the value of agency banking for promoting financial inclusion. He emphasizes that agency banking can cater to individuals at all levels of the financial inclusion ladder, from cash-dependent individuals to tech-savvy smartphone users. Albertson acknowledges the challenges posed by the evolving banking landscape and the increasing competition from fintech companies and mobile money platforms. However, he views these entities as potential partners rather than direct competitors. Through a robust partnership strategy and an omnichannel approach, Software Group aims to collaborate with various fintech and mobile money providers to enhance the accessibility and functionality of agency banking services. Albertson also recognizes the growing importance of technologies such as robotics, AI, and machine learning in shaping the future of banking. Software Group is investing in advanced technologies to improve the efficiency and effectiveness of its products and services, ensuring that agency banking remains at the forefront of digital innovation in the financial sector. As the banking industry continues to evolve and adapt to changing consumer behaviors, Albertson believes that agency banking will play a crucial role in driving financial inclusion and expanding access to banking services across Africa. With a strong focus on partnerships, innovation, and technology integration, Software Group is poised to lead the way in the development and growth of agency banking in the region.