Become agent banker

In almost every suburb, branchless banking services, commonly known as agent banks, are sprouting.
The mobile banking innovation is definitely lucrative for anyone who hopes to subscribe as an agent.
Being an agent for a commercial bank, gives you the freedom to concurrently attend to your other businesses, for instance, operating a supermarket, grocery shop or salon. With this addition, you can increase your income while attracting customer traffic to your core business.

Agent banking
Agent banking involves providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller or cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
So, this week, we want to share with you on how you can earn an extra income when you invest in Agency Banking. Although this service is still new but is worth a try.
Mr Reagan Ssembatya, the manager operations at House of Wealth, says: “Once you are positioned in a populous suburb, you will be able to make a killing.”

Start
So, what is required for you to start?
In our interaction with a Centenary Bank Supervisor who preferred anonymity but we shall call Mr Harrison Okot, said the check list that one must fulfill before they become an agent is an existing business or shop that has been operating at least for a year.
“This business must be registered either as a sole proprietor, Sacco, or an association with a valid trading licence,” he shares.
To register, you will be required to present a certificate of good conduct issued by Interpol. This is especially for people operating in Kampala. If your business is based upcountry, you will be required to present a letter from the Local Council authorities.
“Because you will be handling people’s money, this will be deposited on an active account that has been operating at least for 12 months,” Okot shared.
The other requirement to set you off is a copy of your national identification, driving permit or passport.
Experts say that if your business is registered as a company, you will be required to submit the copies of the Articles of Association, Certificate of Incorporation, company forms which list the directors in the company and a board’s resolution that allows you to start this business signed by all the directors.
If the business is a sole proprietorship, you will only be required to submit a certificate of registration of business name and form of particulars.
The photos of the shop where you will be operating from both front and inside view plus a map showing the location of the shop is vital.

Process
The commercial banks which have signed you up for Agency banking have a supervisor who will help you organise the relevant documents. It is then this supervisor who links the agent and commercial bank branch manager to process the paperwork.
It is at this stage that the qualified files are sent to the head offices of the commercial bank.
Then, the respective commercial banks will submit the file to Bank of Uganda (BoU) for approval, a process that takes about two weeks.
After BoU has approved the files, the successful agents are then inducted into training. After, they are requested to deposit Shs767,000 which is used to cover for a tablet that will be used in doing the transactions.
At this stage, you will be required to deposit float (money) which will be your operating capital.
Just like that, you will be doing business and earning through commissions on each transaction which ranges from receiving deposits for school fees, bills such as water and Umeme’s Yaka, among others.
The beauty with this service is that customers inter-banking is done by some banks agents of some commercial bank. This helps you as an Agent to earn extra commission.

Money
Okot says, ideally for one to start this business, you will be required to at least have Shs5million but because the economic conditions are hard-hitting, some commercial banks have lowered this to Shs3 million for one to start.
Over time, when the business picks, you will be required to increase your float depending on the demand.
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.
“For example, if a customer deposits Shs1 million with the agent, this transaction will earn the agent Shs800,” Okot shared.
What will make you earn more money will be school fees deposits where each transaction will bring you Shs1,125 per bank slip.
Let’s say, if you are positioned in a very populous area or suburb and during school fees payment, you handle 50 bank slips daily for about 10 days, your commission will be way over Shs500,000.
With this, plus commissions from other transactions, one will be assured of Shs1 million monthly.