Optimising Agent Networks

This study aims to understand the customers' needs and their criteria for developing an optimal Business Correspondent (BC) model. It was conducted in the Indian states of Uttar Pradesh and Gujarat in 2010-2011.

BCs have brought formal banking services to the poor and have helped to extend financial inclusion. However, they have problems of their own including motivation, commitment, liquidity management and building trust among their clientele. This study explores following questions:

• Where and how do low income households want to make deposits, withdrawals, payments and other financial transactions? What works best for them, what does not work, and why?
• What other issues are important to inspire trust and feel their money is safe with a BC?
• From the BCs' point of view, what is realistic? How can their numerous current difficulties serving a diverse and widespread clientele be improved?
• Should BC banking services be expanded to include airtime recharge shops, pharmacies, grocery and their extensive networks? How do customers feel about the suitability of such venues and overall trustworthiness of such agents?

The respective state reports can be viewed here: Gujarat and Uttar Pradesh.