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Here we explain what agency banking is, what the benefits of agency banking are and how it’s set to transform the financial arena.
Want to revolutionise your fintech business? Agency banking could accelerate your growth journey. But what is agency banking and how can it help you?
Agency banking is where a card programme manager delivers banking-like functionality, without being a bank. The programme manager functions as the ‘banking agent’ and utilises a financial services provider (you might hear them referred to as an agency service provider) to serve customers.
The end customer receives a physical or virtual card, with an account number and sort code or IBAN and can make and receive payments via their account.
It’s also key to note that it’s branchless banking - all the interactions are usually completed through a smartphone, whether that’s via an app or website.
A banking agent is an entity who cannot offer banking services themselves, because they don’t have the correct license and regulatory compliance. However, by working with a third-party financial services provider who is able to package up banking services, the agent can start offering these services to end customers. They can offer customers services like paying money in, taking it out, and transferring funds.
Thredd can assist a business in having their own banking-like capabilities. Find out more about how we can help.
Thredd provides banking agent the ability for Thredd’s customers to take and make banking payments using Thredd’s banking rails, without needing to be set up as a bank.
There are a whole host of payment services available via a banking agent which include: Faster Payments in, Faster Payments out, BACS, CHAPS, SEPA payments and Direct Debits.
How a banking agent works with Thredd:
Banking agents were born out of the need for people who can’t access traditional banking, have banking-like facilities. This could be because they’re financially excluded from incumbent banks, and traditional banking streams, but have access to a mobile phone, which means they can access services through a banking agent.
Benefits for banking agents:
Benefits of banking agents to the end customer:
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