This report sheds light on Indonesia's remarkable growth in agent network diversity, transaction activity, and sustainability. The evolution of Indonesia's agent network has facilitated the coexistence of multiple business models and practices, enriching the market, fostering innovation, and promoting accessibility to DFS. Notable diversification, including the integration of various non-bank entities, has led to a flourishing financial ecosystem, marked by a significant upsurge in profitability and transaction volume. However, the agent network also faces several challenges, including a decline in new account enrollments, diminishing support and training from service providers, liquidity management issues, and operational disruptions. Emilio Hernandez-Hernandez Brooke Patterson Bill & Melinda Gates Foundation
Branchless banking agents play a vital role to extend financial services to unbanked communities, foster their inclusion in the financial system, and drive economic growth. Indonesia’s agent networks experienced exponential growth by 2023. During this period, nonbank entities also started to offer financial services through agent networks. MSC conducted the Agent Network Accelerator (ANA) research in 2023, which builds on previous studies from 2014 and 2017. The findings highlighted that agent networks in Indonesia had expanded and strengthened in 2023, with a balanced gender representation. We are all set to share the research findings on 2nd May 2024. The event promises further insights into the state of agent networks. Register here to join us: https://lnkd.in/gfwjTXvh
