Philippine E-Journals

Evaluating Banking Agents: A Case of Brazilian Banking Correspondents

Tania Pereira Christopoulos | Lauro Emilio Gonzalez Farias | Tomás Costa De Azevedo Marques

Discipline: Economics, Business

 

Abstract:

Financial institutions play an important role in the development of any country’s economy, but there is still an enormous gap between supply and demand of financial services that meet the needs of the poor. Hence, it is important to analyze the role of the traditional financial system in the expansion of proper financial services, and their accessibility to the poor. Within inclusive finance, the most promising topic seems to be branchless banking. One major example of branchless banking is the case of banking correspondents (BC) in Brazil. In order to deepen the comprehension of the subject, this article will present a case of a banking correspondent performance evaluation. This analysis will present results concerning BC sustainability and social welfare impacts of its presence in the community.