In March 2024, the GSMA Mobile Money programme organised a roundtable, convening key industry players from Airtel Africa, Axian Group, GSMA, Innovations for Poverty Action, Onafriq, and Vodacom discussed the future of agent networks. The dialogue focused on three themes:  

• Understanding mobile money agents’ role and preparation for digital upskilling, 

• Maintaining the commercial sustainability of agent networks, and 

• Working towards viable future agent networks. 

Participants shared their knowledge, experiences and challenges with the topic, aiming to better the industry and futureproofing a vital distribution asset. Below are some of the insights gained from this session: 

Understanding agents’ role and preparation for digital upskilling  

The roundtable examined the ongoing role of agents in expanding financial inclusion. Mobile money agents continue to play a crucial role, particularly in regions with limited digital access and literacy. Agents are often seen as brand ambassadors and their importance has typically grown alongside the expansion of mobile money services. An important question for the industry centres around agents’ relevance in the future as more mobile money users become comfortable with digital financial solutions. To enhance agents’ effectiveness, suggestions included layering additional digital financial services onto existing offerings for improved customer experience.  

Another topic from this theme discussed how agents can adapt to current and future technological advancements. There are several challenges to this preventing agent’s progress, including the need for affordable devices and training that doesn’t require access to expensive laptops.  Furthermore, security concerns related to new equipment need to be considered too, with some agents lacking the proper infrastructure to store expensive equipment. Setting up a secure facility to store any equipment can be costly for agents, however, such an investment could offer agents the opportunity to receive e-commerce deliveries to supplement their income. Options like this could also solve logistical challenges around customer addresses and whilst unlocking opportunities for agent’s digital upskilling. 

Ensuring the commercial sustainability of agent networks 

Agent commercial sustainability is affected by significant barriers. Agents face the interlinked challenges of remaining profitable, while commission rates fluctuate in some regions. In order to manage these fluctuations, access to working capital remains a major lifeline for agents. Many mobile money providers are looking at solutions to resolve this, such as Safaricom providing business loans for M-PESA agents in Kenya.  

The flexibility of agents in offering services outside of regular banking hours remains their comparative advantage and a key driver for commercial sustainability. However, this advantage may be negated by a lack of focus on supporting rural agents.  Mobile money providers are exploring several technological solutions to mitigate this, including geospatial analysis, to develop a more dynamic approach to agent care and long-term sustainability.    

Looking ahead, the roundtable explored potential future revenue streams for agents. While interoperability may impact agent networks in the future, one solution is to consider “agnostic agents” who can handle transactions across multiple mobile money providers and reduce the need for multiple devices. However, solutions would need to be tailored to specific market contexts, with improved access to working capital remaining a critical factor.  

Building viable agent networks for the future 

To remain sustainable, the mobile money industry should continuously emphasise its significant positive impact on customers. Demonstrating customer impact is crucial for any financial service provider, as it underscores the value and benefits of their services. Mobile money has been instrumental in improving financial inclusion and is frequently the preferred financial service in many markets. However, the industry must navigate several challenges, including scaling issues and unintended consequences for both consumers and agents. Tackling problems holistically is the key to ensuring agent networks are both future proof and add value for the end user.