As it sounds, branchless banking is about banking that enables regular banking services without going to an actual branch. It means that having to physically go to a financial institution once you need to make any financial transactions is far from the past. Both time and money are saved on the travels. How is all that possible?
Yo! Uganda Limited is currently enabling Financial Institutions to reduce costs by accepting deposits from their customers directly from their Mobile Money wallets and transmitting withdrawals directly to their Mobile Money wallets.
We can speak of branchless banking advantages from two perspectives: the customers and service providers.
Business perspective:
Investing in cashless banking can bring a huge payoff for the business. Branchless solutions don’t require investing in building and supplying new bank departments. Therefore, they are not so high-priced. A bank can invest saved resources in developing new products, additional digital services, or improving existing ones.
Branchless banking facilitates reaching out to new customers from various, sometimes hard-accessible locations. Thus, not only can a bank save money, but at the same time welcome more clients into the fold.
Investing in branchless banking solutions can keep your business ahead of the competition. As the world is moving forward – banks should too. To stay relevant in the financial market, it is essential to follow current trends and respond to new, every time more exacting needs of your clients.
Customer perspective:
Customers can enjoy seamless transactions that can be performed from any place in the world as long as they have a good internet connection. Whether you are a city businessman or a rural area locator – the way you bank can be much more convenient.
Online banking services are usually easy and intuitive. What was a complicated process can now be completed with a few taps on the phone screen. Thus, even if you don’t feel too confident with digital apps, you should be able to learn in no time how to master them.
Branchless banking gives customers the convenience of transacting using multiple avenues such as voucher less top-up, loan settlements, cardless withdrawals, cash deposits, money transfers, tax and bill payments, etc. Financial institutions that rely on biometric verifications should be cautious in times of outbreak. And branchless banking resolves this issue by using OTPs and sharing virtual transaction receipts with customers via email or SMS.
Conclusion
There is no doubt that virtual banking has revolutionized the financial industry, and it is going to develop even further in the future. Innovative distribution channels with the perspective of customer convenience are going to emerge. Because of this, the operators will soon compete with each other for their space in the next-level agency banking space. The future looks extremely promising!