tool+8.4.+cgap+tool+-+agent+volume+and++cash+flow+calculator.xls

7/23/2019 Tool+8.4.+CGAP+Tool+-+Agent+Volume+and++Cash+Flow+Calculator.xls

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On the INPUT page you find a format which will help you determine

a) the potential transaction numbers and volume in a given community, and

How to estimate a community's cash and transaction demand beforelaunching a banking agent network?

Baning agent networs are retail or postal outlets at which clients of one or more financial serviceproviders can pay their bills, consult their account balance, or withdraw and deposit funds into their own oranother ban account! Before a baning agent can start processing transactions, the financial serviceprovider e"tends the store with a credit line or overdraft in a separate ban account! The si#e of the creditline depends on each agent$s si#e of business operations, the e"pected volume of transactions and howlong the agent has already been one of the ban%s credit clients or woring as baning agent! &hen aclient withdraws money, the agent account is credited in the same amount! The opposite occurs for adeposit of funds 'any amount entering the agent, i!e!, also bill payments)! In case the agent$s credit line hasbeen fully paid out, due to more deposits and payments 'cash in) than withdrawals 'cash out), the agent$stransaction device blocs and can only be debloced if the funds are deposited at a branch!

(any of today%s baning agent networs in countries lie Bra#il, olombia, and Peru, capture large

amounts of cash from its users! * lot more than they disburse leaving the shop owner of one his+heremployees or relatives to commute fairly freuently to be nearest branch to deposit funds! This situatione"poses the person to the ris of fraud and theft, as well as interrupts the shops main business operations!

-*P conducted a study in the department Boyaca in olombia to understand si#e and patterns of maincash flows in a small municipality, as well as to estimate the types of flows that could be channeled througha baning agent networ! .uch intelligence about the a community%s demand for bill payments, deposits,and withdrawals in a location supports financial institutions in the design of an appropriate baning agentnetwor/ a networ that can not only absorb the population%s demand for cash in terms of volume, but alsoin terms of transaction numbers! Please find a sample cash flow typology on the last tap of this e"cel file!

b) the necessary si#e of your agent networ to absorb the potential cash volume and number oftransactions!

Please do not e"pect the results to be 0112 accurate3 This tool will rather help you to get a general ideaabout the relative magnitude of the different flows and let you estimate a tailored agent networ! *t thesame time, the maret research necessary to fill the fields on the INPUT tap, will provide you with importantmaret intelligence, vital to fully e"ploit local demand for cash deposits and withdrawals! Please see the45O((5N6*TION. tap for ideas on how to balance cash7in and cash7out volumes and how toma"imi#e capacity utili#ation of the agent networ!

If you have comments, uestions, or suggestions on how to improve this tool, please contact 8annah.iede at hsiede9worldban!org! :ooing forward to hearing from you3



CGAP - TRA!ACT"# $#%&( A) CA!H *%#+ AT AG(T %#CAT"# - in,ut Please fill out all cells

; 6ay periods

<1,111 Number of people in location or service area of your planned agent networ

= Number of people per household

Cash from bill ,ayments cash in. P

;111 Number of households in location 0 to ; > to 0

0 Number of phone line bills per household+month ;12 2 paid at agent in location @12

0 Number of energy bills per household+month >12 2 paid at agent in location0 Number of gas bills per household+month A12 2 paid at agent in location @12

< Number of other bills per household+month <12 2 paid at agent in location @12

number of t"/

<,;11 Number of phone bills @ *verage amount of phone bill 0 to ; > to 0

?,111 Number of energy bills @ *verage amount of energy bill 0,111

?,;11 Number of gas bills 01 *verage amount of gas bill 1

<,111 Number of other bills @ *verage amount of other bill 0,>1

00111 Total bills per month at agent ?<1

?,<@1

<1,111 Colume of phone bills

<=,111 Colume of energy bills Colume of t"

?;,111 Colume of gas bills 0 to ; > to 0

0>,111 Colume of other bills @,111 <

1

0;,>@1 =<,;>1

<>,<=1 A

Cash from informal salaries cash in.

<12 Percentage with cash based salary Pe

<;1 *verage salary =,111 Number of cash recipients 0 to ; > to 0

=12 2 of salary deposits conducted at agent @1,111 Colume of deposits conducted at agent ;12

<12 2 of salary deposited

Cash from airtime to, u,s cash in.

<1 Number of top ups per day 011 6aily volume

; *verage amount of top up ?111 Colume per month 0 to ; > to 0

>11 Number t" per month 0?2#ccasional de,osits including de,osits in other accounts cash in.

0 Number of deposits per household per month <;1,111 (onthly volume

;1 *verage amount ;111 Number of t" per month 0 to ; > to 0

<12

Cash from formal salaries cash out.

<12 Percentage with stable employment

=12 Percentage of stable employment with direct deposit =,111 Number of employees 0 to ; > to 0

<;1 *verage salary 0,>11 Number of employees with direct deposit @12

=12 2 of salary withdrawals conducted at agent >,111 .alary to be withdrawn at agent

>12 2 of salary withdrawn

#ccasional withdrawals cash out.

0 Number of withdrawals per household per month <;1,111 (onthly volume

;1 *verage amount ;111 Number of t" per month 0 to ; > to 0

12

!ocial and ,ension ,ayments cash out.

=11 Number of social payment or pension recipients in locat =1,111 (onthly volume

;1 *verage amount @11 Number of t" per month 0 to ; > to 0

< Number of disbursement times per month ;12



Ca,acity in terms of transactions ,er agent

; (inutes per transaction 0<1 Transaction capacity per agent+day

0 Number of PO. devices at agent <,>=1 Transaction capacity per agent+month

01 *verage number of opening hours+agent+day

<< *verage number of woring days+month

<,111 Proposed cash limit per agent as of credit analysis

0,111 Proposed amount of cash hold by agent for withdrawals

= Planned number of agents in location



!ummary table

umber of t/ 0 to 1 2 to 03 00 to 01 02 to 43 40 to 41 42 to 53

Bill payments ?,<@1 @<1 0,@11 1 1 1

Dormal salaries 0,<@1 ?<1 1 1 1 1

Informal salaries <,111 1 1 <,111 1 1

Phone recharge A; A; A; A; A; A;

Occasional deposits 0,111 0,;11 0,111 ;11 ;11 ;11

Occasional withdrawals 1 ;11 ;11 0,111 0,;11 0,;11

.ocial payments+pensions =11 1 1 =11 1 1

Total 67351 57401 57581 57981 47381 47381

Cash de,osited at agent 0 to 1 2 to 03 00 to 01 02 to 43 40 to 41 42 to 53

Bil payments <>,<=1 A,;=1 0=,=11 1 1 1

.alaries informal =1,111 1 1 =1,111 1 1

Phone recharge ?A; ?A; ?A; ?A; ?A; ?A;

Occasional deposits ;1,111 A;,111 ;1,111 <;,111 <;,111 <;,111

Total 0027201 647901 2:7881 217581 417581 417581

Cash withdrawn at agent 0 to 1 2 to 03 00 to 01 02 to 43 40 to 41 42 to 53

.alaries formal A>,@11 0,<11 1 1 1 1

Occasional withdrawals 1 <;,111 <;,111 ;1,111 A;,111 A;,111

.ocial payments+pensions <1,111 1 1 <1,111 1 1

Total 927633 ::7433 417333 837333 817333 817333

T#TA% 0 to 1 2 to 03 00 to 01 02 to 43 40 to 41 42 to 53

Demand:

Number of t" A,>?; ?,<0; ?,?A; ?,;A; <,1A; <,1A;

Colume cash in 00>,>0; @<,0; >=,AA; >;,?A; <;,?A; <;,?A;

Colume cash out A>,@11 ==,<11 <;,111 ;1,111 A;,111 A;,111

Net cash position in period ?,@0; ?@,A0; ?,AA; 0;,?A; '=,><;) '=,><;)

Number of transaction demand per day 0,;<A >=? >A; A0; =0; =0;

Net cash position per day A,>? A,A=? A,;; ?,1A; ',<;) ',<;)

Proposed network capacity:

6aily transaction capacity of proposed agent networ =@1 =@1 =@1 =@1 =@1 =@1

6aily cash7in capacity of networ if no cash deposit @,111 @,111 @,111 @,111 @,111 @,111

6aily cash7out capacity of networ if no cash withdrawal 7=,111 7=,111 7=,111 7=,111 7=,111 7=,111GAP:

Transaction number capacity 'gap) '0,1=A) '0>?) '0;) '<?;) >; >;

ash volume capacity 'gap) ?A <;A =; =,<; ';,<;) ';,<;)

Optimal number of agents in location to cover t" 0? ; > > ? ?

Optimal number of agents in location to absorb volume = = = < 01 01

6aily transaction capacity of optimal agent networ 0,;<A >=? >A; A0; 0,00 0,00

ash7in volume capacity of optimal agent networ <;,=;1 01,A0A 00,<;1 00,0A 0,@;1 0,@;1

ash7out volume capacity of optimal agent networ '0<,A<;) ';,?;@) ';,><;) ';,;@) ',<;) ',<;)



0 to ; > to 01 00 to 0; 0> to <1 <0 to <; <> to ?1

1

<1,111

=1,111

>1,111

@1,111

011,111

0<1,111

0=1,111

1

0,111

<,111

?,111=,111

;,111

>,111

A,111

@,111

B,111

Transaction and cash flow demand of location

Colume cash in Colume cash out Number of t")ays of m onth

$ o l u m

e o

f t r a n s a c t i

um

ber

oftransac

tions

0 to ; > to 01 00 to 0; 0> to <1 <0 to <; <> to ?1

1

<11

=11

>11

@11

0,111

0,<11

0,=11

0,>11

0,@11

)aily transaction demand ;s< ,ro,osed ;s< o,timal network ca,acity

Number of transaction demand per day 6aily transaction capacity of proposed agent networ

6aily transaction capacity of optimal agent netw or

=

o f t r a n s a c t i o n s

0 to ; > to 01 00 to 0; 0> to <1 <0 to <; <> to ?1

70;,111

701,111

7;,111

1

;,111

01,111

)aily cash ;olume demand ;s< ,ro,osed

Net cash position per day 6aily cash7in capacity of netw or if no cash deposit

6aily cash7out capacity of netw or if no cash w ithdraw al

=

o f t r a n s a c t i o n s

?1,111

)aily cash ;olume demand ;s< o,timal



!am,le cash flow ty,ologyThe -*P study in olombia identified the following main cash flows that can be fairly easily measured and traced in a

*low Pattern Payment method

Potential deposits at agent

Ta" 7 property *nnual '@12 in Eanuary+Debruary) :

Ta" 7 commercial sales *nnual :ow 7

Ta" 7 gas stations *nnual By chec :

.alaries 7 public employees (onthly 'end of month) By chec or direct deposit 8

.alaries 7 employees of large companies (onthly 'end of month) 6irect deposit 8

6aily, weely, bi7weely In cash

Bills 7 water (onthly In cash in municipality 8

Bills 7 energy+gas (onthly or uarterly 8

(onthly 8

Incidental 8

.ales 7 local maret Incidental, maret days In cash

Purchase 7 wholesale Incidental 6eposit in branch into other account 8

Purchase 7 small suppliers Incidental ash :

Potential withdrawals at agent

.ocial payments 5very two months Drom closest branch in cash (edium

Pension payments (onthly (edium

Incidental 8

.ales 7 wholesale Incidental In cash in nearest branch (e

How to estimate a community's cash and transaction demand before launching aagent network?

Potential to channbankin

In cash at local branch or directly atmunicipality

By chec if large payments, otherwise incash at municipality

.alaries 7 employees and worers of

family7 and informal businesses

(edium 'more in t

safegu

In cash in afiliated retail outlet or atnearest branchBills 7 Phone 'fi"ed and cellphone

contracts)In cash in afiliated retail outlet or atnearest branch

National, regional, internationaltransfers+remittances

In cash in nearest branch, remittancecompany, or courrier

(edium 'most revenaw

Drom ban representative in municipalityin cash

National, regional, internationaltransfers+remittances

In cash in nearest branch, remittancecompany, or courrier



Recommendations to o,timi>e your agent network

alancing cash flow in agent outlets *gree with local service companies to spread bill payment deadlines!

*gree with local employers to spread salary payments!

*gree with government and+or large employers to distribute social and pension payments!

:in with local microfinance providers to disburse loans and recollect payments!

Di" agent comission as 2 of transaction amount!

*llow agents to deposit own funds into agent account to increase their Fworing capital!F

Offer fle"ible credit lines during days of higher transaction numbers+volume!

Provide incentives to local group of agents to manage cash flows together!

:imit transaction amounts for deposits or withdrawalsharge clients higher commissions for depsosits or withdrawals

"ncreasing transaction numbers

*gree with government and+or large employers to distribute social and pension payments!

:in with local microfinance providers to disburse loans and recollect payments!

6evelop easily understandable products and services adapted to clients% needs!

Prepare launch of agent networ with pre7announcement 'media, promotion material, through municipality)

Organi#e launch event

6evelop and announce sales channel 'e!g!, roaming loan officer, toll free phone number, etc!)

Provide each agent outlet with material to promote full range of agent services!

(ae manager of closest branch responsible for agent networ activity 'agent supervisor)!

Provide incentives to supervisor to ma"imi#e networ operations!

Provide incentives to agents to ensure uality of service and transaction increase!

How to estimate a community's cash and transaction demand beforelaunching a banking agent network?

Di" agent comission in terms of ris assumed by the ban, i!e!, agents with large credit lines and longer e"pected period to depositfunds receive lower comissions!

6evelop feedbac mechanisms for agents to recommend changes to e"isting procedures, inform about specific client reuests,complain about problems!

tool+8.4.+cgap+tool+-+agent+volume+and++cash+flow+calculator.xls

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