Do agent networks help to boost savings? – Effects on institutional deposit mobilization and customer saving behavior

March 21, 2019

This report examines if agent networks do help to mobilize savings - one of the primary objectives of microfinance institutions that introduce agent banking channels.  Mechanisms of effects are presented across multiple dimensions. Results suggest that agents help to boost savings but they cannot be expected to do so in every context. Culture, products, incentives, pricing and customer behavior are factors that have to be taken into account. Key recommendations are discussed how DFS providers can nevertheless realize agent networks’ potential for savings mobilization.