Agent Banking, a “newly initiated banking service” distribution model in Zimbabwe, is getting momentum and is being adopted by remote consumers where a bank branch is unavailable. National Building Society (NBS) has introduced InstaPoint agent Banking model in the areas of Zimbabwe where “traditional banking” has not yet reached.
Last year the Reserve Bank approved the adoption of agent banking by financial institutions as part of efforts to increase access to financial services. With 67 percent of Zimbabweans living in the rural areas, there is huge possibility for financial institutions to increase their presence in the traditionally marginalized market.
NBS in March hinted that they will be introducing banking agents, as the financial institution taps into the unbanked by bringing financial services to the consumer’s doorstep.
NBS said that they have matured enough to understand that we should not stop formulating strategies and looking for ways to make banking or accessing a mortgage loan as easy as can be. That is why we have a new wonderful service: The InstaPoint.
How it works and the way forward
The InstaPoint is an agent who offers agency banking services through their retail outlet. According to RBZ regulations, agents can take deposits, provide cash against cheque, facilitate payments of the utility bill and take the application of different bank services.
The NBS InstaPoints complements branch network and electronic banking channels while at the same time reducing the cost of serving customers therefore making our services more affordable.
InstaPoint accounts comes with no special no-frills free banking account which you can open instantly at an NBS InstaPoint. The account, has been named the InstaSave Account and it requires an initial deposit of only $3 and a copy of the client’s National ID. Transactions can be done immediately after opening the account.
The Account also comes with no minimum balance ($0), no monthly service fees, no minimum monthly salary required and SMS alerts for all transactions.
NBS has so far partnered with NSSA and BOOKS FOR LIFE. As of this writing they are 20 NBS InstaPoints agents country wide.
Globally, the rise of FinTech service has been replacing branch banking largely and many of industry insiders are hyping a future where banks will not have branches, rather small, smart and efficient service delivery locations on a limited scale.
For more information on the InstaPoint, please download the brochure here.