• Private sector development and banking

Private sector development and banking

To reach remote municipalities, banks in Brazil use local agents such as vendors, lottery outlets and post offices to manage their operations at the village level. This has several advantages:

• lower set-up and running costs

• it attracts customers who would otherwise shy away from using a bank branch

However, there remain challenges:

• poor clients are not yet using the full range of financial services

• it is hard to find the right business model, i.e. appropriate agents, products, monitoring mechanisms, ways of managing cash liquidity at each point and conducting cost-effective marketing campaigns

• safe guarding cash and managing cash liquidity at the local outlets is difficult

   

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