Confidential
FINCA DRC pilot phase experience with
PoS Agency Network to deliver financial
services to Youth
Jean KABONGO KALONJI
Development Channels Manager FINCA DRC
September 2012
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FINCA DRC Agency Network
Service overview
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FINCA DRC Agency Network
The benefit of using technology to reach Youth
The distance from bank branches (youth and others clients
are spending $0.73 on an average per transaction in urban
areas and $2.40 in rural areas (round trip), the high cost of
servicing low-balance accounts (youth account with opening
balance= $1), decrease foot traffic in our branches and also
broadening and deepening outreach are key reasons.
Through its marketing and client survey process, FINCA
DRC has been made aware of client’s desire and need for
convenience and closeness to be able to do financial
transactions where they live, work or go to school.
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FINCA DRC Agency Network
Cost/Sustainability
Total OPEX and CAPEX costs for opening an agency outlet
are up to 70% less than opening a full service branch, thus
potentially passing these cost savings onto the client.
Per Agent
FINCA equips the agents with
biometric POS device, FINCA
signage and branding as well two
process maps, rolls of paper. At
all, the estimated cost per agent is
approximately $1,600.
Per Branch
Setting up a full branch costs is
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approximately $200,000
FINCA DRC Agency Network
How FINCA uses the PoS network to serve the Youth market
The agency network first and foremost is a
cash transaction channel, which enable
FINCA DRC to conduct more transactions at
lower cost.
In additional, the agent location offers during
the fix visit of the FINCA field personnel
others services such as savings account
opening and PoS cards application.
The FINCA Outreach Officers are working very closely with schools to
enable Youth to open savings account and start conduct transactions at
the agent location without having to go to a FINCA branch.
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FINCA DRC Agency Network
FINCA strategies to market the technology to Youth
FINCA DRC offers youth financial literacy
training as well as savings products. Youth
engaged in the training session receives
one session on FINCA and its products
and delivery channels.
Direct marketing to Youth on the usage of
the savings account
Select potential agent locations within
close proximity to schools even some
schools as agents
Conduct weekly deposit collection with
PoS Device in schools
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FINCA DRC Agency Network
Lesson learned
The big lesson learned is how to manage the agency network.
The outcome here is the “FINCA Agent Management Program.” This
program will enable FINCA to achieve the following :
 Recruit, train and commence new operations with new agents
 Monitoring visits to agent to ensure compliance with the FINCA
standard by using the assessment tool
 Regular status checks on liquidity levels
 Resolve most operations issues
 Monitor agents and Track and manage liquidity variables;
 Mystery shopping to monitor level of customer service provided by
agents, especially towards youth
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FINCA DRC Agency Network
Challenges
FINCA DRC plans to address challenges that were seen during the pilot
and make adjustments accordingly.
1) Ideal profile of a POS agent, and based on that, develop a prototype
for the types of agents FINCA would like to target;
2) How can FINCA better serve youth client and how can FINCA mobilize
uptake and usage of the technology;
3) Overdraft facility for agent to face the liquidity issue
4) Commission fees and structure to best serve our agents and clients;
5) Extend customer service support in off-hours to both clients and
agents;
7) Staffing to accommodate and properly supervise a growing activities
and agent network.
8) Ressources needed to manage a large number of individual agents
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