What Are the Benefits of Agent Banking?

In the rapidly evolving mobile money ecosystem across Africa, agent banking services have become a strategic lever for banks, fintechs, and payment networks to deepen financial inclusion, especially in remote areas.

For a company like Onafriq, which builds financial market infrastructure and payment solutions across the continent, agent banking is a powerful growth engine.

Cost-Effective Market Penetration

Establishing full-fledged bank branches can be expensive, especially in rural and underbanked regions. Agent banking dramatically lowers the barrier to entry.

Through its super-agent network in Nigeria via Baxi, Onafriq provides access to over 460,000 agents nationwide, enabling a physical footprint without building new branches.

This model shifts much of the operational and capital expenditure to the agent layer, allowing banks and fintechs to scale efficiently into underserved markets.

As noted by the South African Treasury, leveraging third-party infrastructure through agents significantly reduces operational costs, enabling broader financial inclusion.

This means Onafriq’s partners can reach more customers in a financially sustainable way.

Greater Customer Engagement in Underserved Areas

Agent banking makes financial services accessible at the “last mile.”

In many rural or low-infrastructure settings, agents operate where traditional banks don’t reach. Through Onafriq’s network, customers can access banking-like services via trusted local merchants.

Agents often operate extended hours, giving customers more flexibility. Financial inclusion studies show these longer hours reduce barriers for people who cannot take time off work.

These interactions foster deeper trust, helping drive adoption of digital financial services.

Opportunity for Cross-Selling Financial Products

Agent networks are not just transaction points; they are also sales channels.

Once customers are onboarded, banks and fintechs can cross-sell savings accounts, micro-loans, insurance, or digital wallets.

Onafriq’s API-based infrastructure allows partner banks to trigger additional services when agents perform cash-in and cash-out transactions, such as opening virtual accounts, issuing cards, or enabling credit products.

This model deepens customer relationships and turns agents into revenue-generating touchpoints.

Strengthening Brand Presence Without Heavy Asset Build

Agent banking enables financial institutions to establish physical presence without the cost of building branches.

Through the Onafriq–Baxi network, banks can deploy services such as cardless withdrawals, reducing operational expenses related to ATM networks and card issuance.

The infrastructure also supports eNaira cash-in and cash-out transactions for institutions offering central bank digital currency (CBDC) services.

As agents carry branded services, customers associate banks with accessible and trusted financial access.

Resilience and Scalability Through Infrastructure

Agent banking contributes to a more resilient financial market infrastructure.

Onafriq’s network connects nearly one billion mobile wallets and over 500 million bank accounts across Africa, supporting real-time, cross-border, and agent-based transactions.

Distributing services across a wide agent network reduces centralized risk by spreading liquidity, transaction volumes, and cash flow.

Scalability follows naturally: more agents can be onboarded, API integrations expanded, and services extended without major capital investment.

Enhanced Financial Inclusion and Economic Impact

For many underserved populations, agents provide the first point of formal financial access, enabling deposits, withdrawals, and digital payments in a secure, regulated way.

Agents themselves benefit by earning commissions, diversifying income, and increasing customer foot traffic.

By enabling financial access, Onafriq supports broader economic activity, allowing businesses to collect payments, individuals to move and save money, and institutions to distribute funds efficiently.

Bridging Physical Access and Digital Scale

Agent banking is more than a temporary solution for cash-based economies; for Onafriq, it is a cornerstone of its pan-African payment infrastructure.

Through its agent network, Onafriq enables cost-effective market reach, increases engagement in hard-to-reach areas, and provides a scalable path for banks and fintechs to deliver digital payment solutions.

As digital payments in Africa accelerate, agent banking powered by robust financial market infrastructure like Onafriq’s bridges the offline and online divide, deepens inclusion, and supports new financial products without the cost of traditional banking models.

About Onafriq: Onafriq provides payment solutions connecting businesses and financial institutions across Africa's evolving mobile money ecosystem. Contact us to discuss agent banking implementation and cross-border payment infrastructure tailored to your market.