distribution in banking

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Distribution in financial services marketing is concerned with how the service is delivered to the customer, making sure that it is available in a place, at a time and in a format that is appropriate and convenient for the customer.
In a growing number of countries, the expansion of the financial services sector has been accompanied by a significant blurring of lines between different institutional types with, for instance, retail banks offering insurance products (bancassuarance), insurance companies offering bank accounts and supermarkets launching their own credit cards. As a consequence, individual organizations can no longer claim a distinctive market position based on the products they offer.
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For example: money transfer agents, commission payment agents…
Rationale for banking agents
Banking agents help financial institutions to divert existing customers from crowded branches providing a “complementary”, often more convenient channel. Other financial institutions, especially in developing markets, use agents to reach an “additional” client segment or geography. Reaching poor clients in rural areas is often prohibitively expensive for financial institutions since transaction numbers and volumes do not cover the cost of a branch. In such environments banking agents that piggy back on existing retail infrastructure – and lower set up and running cost - can play a vital role in offering many low-income people their first-time access to a range of financial services. Also, low-income clients often feel more comfortable banking at their local store than walking into a marble branch.
Banking agents are the backbone of mobile banking, i.e., performing transactions over a mobile device, most often a mobile phone. To enable clients to convert cash into electronic money and vice versa which can send be sent over their mobile phone, clients will have to visit a branch, automated teller machine (ATM), or banking agent. Especially in remote and rural locations, where cash is still the most important way to pay and transact, a mobile banking service is dependent on
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