Do Agent Networks Help to Boost Savings? – Effects on Institutional Deposit Mobilization and Customer Saving Behavior

Savings benefit both the providers of Digital Financial Services (DFS) and their customers. Customers who use DFS accounts to save money can improve their financial resilience, build a buffer against income shocks, and be in a better position to invest and engage in long-term financial planning. Financial Service Providers (FSP) that have more savers in their portfolio can profit by generating more income and lowering their cost of funds. The claim that agents can drive savings mobilization has been a major incentive for introducing agent networks. Yet, the question of whether agent networks can boost savings has rarely been systematically assessed. The report showcases IFC research with Baobab Senegal (BSN) and Madagascar (BMG) and findings from a longitudinal study with nine microfinance institutions in Sub-Saharan Africa. The report explores the impact of agent networks on: changes in transaction activity of customers, changes in deposit mobilization, and changes in savings behavior of customers.