Who Is A Bank Agent?
Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
How To Become A Bank Agent In Uganda
Agent Banking regulations requires that all agents should belong to a financial institution i.e. a banking institution and different banks have different particular requirements regarding agent banking. So first, we recommend you identify a bank you would love to work with and visit them to ask for the necessary requirements.
- Visit the bank branch close to your business location.
- Respond to questions from the Branch Manager as regards aspects of your business laid out in the Agent Banking minimum standards checklist.
- Fill the Agent Application form and attached the required business Documentation.
- You should be having an operating account in the bank you would like to work for, and the institution should be licensed by the Central Bank for a period of at least six consecutive months prior to the making of the application.
- You must be having a licensed business and have been active for at least twelve months, a presentable physical address, as well as adequate and secure premises.
- When at the financial institution, the branch manager will ask you questions in regards to your business to ensure it meets the minimal standards. You will then fill out a bank agent Application form to which you should attach a documentation of your business.
- Your application will be submitted to Bank of Uganda for vetting and approval. Once approved, you will open a Business account for purposes of Agent Banking (in case you do not have one) and deposit a specified amount for float purchase and another for Point of sale device security deposit to start the operation.
What Do Banking Agents Fo?
An agent may provide any of the following services in conducting agent banking- (a) Collection and forwarding of information and supporting documents for account opening or applications for payment instruments; (b) Cash deposit and cash withdrawal; (c) Bill payments; (d) Money transfers; (e) Facilitating disbursement.
Is Agent Banking Profitable In Uganda?
Profits are high with 40 percent of agents making at least Ugx 352548.43 of profits a month. Although agents are generally happy with their financial gains, data shows they could be earning significantly higher profits.
How Do I Start My Own Banking Agency?
- Dial *211#
- Select Agent Banking.
- Select Register.
- Input your account number.
- Input CenteVisa card PAN number.
- Input CenteVisa card PIN.
- A unique PIN shall be sent to you.
- You are ready to transact!
How To Apply To Become A Bank Agent
To apply you simply follow the steps below;
- Visit the bank branch close to your business location.
- Respond to questions from the Branch Manager as regards aspects of your business laid out in the Agent Banking minimum standards checklist
- Fill the Agent Application form and attached the required business Documentation
- Application will be submitted to Bank of Uganda for vetting and approval.
The Central Bank Will Look At The Following Requirements
1. Agent registration and license; The business should be either of the following types listed below or any entity deemed fit by the central bank.
– Registered Sole proprietor
– Registered Partnerships
– Limited liability companies
– Cooperative Societies
– Microfinance Institutions
2. Agent should have an account in a financial institution licensed by the Central Bank;
3. Physical address of the business.
4. Premise security and size.
5. Past commercial activity, the business should be in existence for at least 12 months).
6. Good Credit reference Bureau report.
Who Can Be A Commercial Bank Agent?
An agent can be any registered and licensed business ranging from a supermarket, a petrol station, a permanent mobile money agent, a retail shop, a pharmacy or hardware store that has been existence for at least one year. Keep in mind, an agent cannot operate agent banking as their only business and they must hold a business account with any banks connected on to the system.
How Does A Bank Agent Make Money?
Your income in the agency business will be derived solely from commissions on transactions processed through your outlet by bank customers. The commission is shared between you and the bank as defined in your revenue share agreement.
How Do I Become An Equity Bank Agent In Uganda?
- An existing business that has been operating successfully in the same location for a minimum of 12 months prior to application.
- Valid business permits for the existing business.
- A strategic business location – accessibility, visibility and security.
How Much Do Bank Agents Earn In Uganda?
Because you will help to open accounts for the case of Centenary Bank, the Agent will earn Shs2,000 for each account initiated. The agent also earns a commission on deposits which starts from Shs300 to Shs3,500 per transaction made depending on the tier.
How Does Agent Banking Work In Uganda?
Under the agent banking model, a financial institution contracts a third party, usually a retail outlet to perform some functions on its behalf, these include: cash deposit and cash withdrawal, payment services including bill payments, money transfers, facilitating disbursement and repayment of loans.