The combined impact of internet and smartphone adoption has benefited the financial ecosystem and particularly the banking industry. It has given banks the flexibility to provide their services to the unbanked or underbanked through a wide network of agents. The agents are usually local retailers authorized to execute different banking services on behalf of banks and financial institutions. These agents can also recruit other agents to work with them and earn small commission on each transaction they execute.

A user-friendly agency banking solution allows the banking agents to access numerous banking services and conduct various operations. Out of the $2.1 billion daily transactions that take place across the world, transactions of $500 million are conducted digitally through mobile banking agents.

The availability of digital financial services in Africa and Asia heavily relies on the concept of agency banking. Agent networks with a broader geographical footprint and penetration in rural areas are employed in this branchless banking approach to effectively deliver seamless banking services to a larger number of consumers.