What Are the Steps to Starting Agent Banking?

Starting an agent banking business sounds big, but at its core, it’s about one simple thing: bringing financial services closer to people who need them. If you’re a bank, a fintech, or one of the payment solution service providers in Nigeria, you’re essentially building a human-powered extension of your brand, right at the community level.

Many banks and fintechs in Nigeria work with established payment infrastructure providers like Onafriq, which support agent banking through secure transaction processing, wallet integration, and regional payment connectivity.

Below is a step-by-step breakdown of how organisations actually launch agent banking in Nigeria.

Understand the Regulatory Requirements (Before Anything Else)

In Nigeria, you can’t jump into agent banking without the right approval. The Central Bank of Nigeria (CBN) sets the rules carefully, and for good reasons. You’re dealing with people’s money, trust, and data.

At this stage, most institutions do three things:

• Study the CBN Agent Banking Guidelines.
• Confirm whether they qualify under their licence type.
• Prepare documentation that explains their model, technology, and risk controls.

It’s not the most exciting part, but it’s the part that makes everything else possible. Think of it as laying the foundation before building the house.

Define Your Agent Model and How It Will Actually Work

Every agent banking business in Nigeria looks slightly different. Some rely on small corner shops, others on supermarkets, and some build hybrid networks.

Your model typically includes:

• Services your agents will offer: Decide which transactions agents can perform, such as cash-in, cash-out, transfers, or bill payments.
• Your commission structure: Set fair per-transaction commissions that motivate agents while remaining sustainable.
• The partners you recruit: Choose trusted local businesses with steady foot traffic and experience handling cash.
• Target locations: Select areas based on customer demand, cash availability, and whether locations are urban or rural.

This step requires real-world thinking. Rural communities often need different support structures than busy urban centres.

Recruit, Onboard and Train Your Agents

This is where the business becomes real.

Successful networks invest in training beyond technical skills. Agents need to understand:

• Know-your-customer (KYC) requirements.
• How to manage disputes and failed transactions.
• How to serve customers during peak hours.
• Basic troubleshooting for mobile payment platforms.

A well-trained agent gives your brand a face, a voice, and a reputation in communities you may never directly enter.

The Backbone of Everything

Agent banking doesn’t work without a reliable technology layer. Your platform must:

• Connect to your banking core or wallet system.
• Handle transactions in real time.
• Sync with POS devices or mobile apps.
• Support secure onboarding.
• Provide monitoring tools for operations teams.

Whether you build internally or partner with a provider, reliability is critical. If the technology fails, the entire network suffers.

Some institutions use established mobile payment platforms, while others build custom infrastructure. Either way, systems must be stable, fast, and scalable.

What Makes Agent Banking Work in Practice

Starting agent banking is not just about devices or compliance. It’s about building a system people can trust.

When regulation, agent selection, training, and technology align, agent banking becomes a powerful way to expand financial access sustainably.

For banks, fintechs, and payment solution providers in Nigeria, success comes from starting small, listening to agents on the ground, and scaling with infrastructure built for real-world demand.

With the right regulatory foundation, trained agents, and reliable financial market infrastructure—often supported by platforms such as Onafriq—agent banking can grow while remaining trusted at the community level.

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.