Supported by AFI, a group of Kenyan policymakers have completed a study tour to Latin America, where they discussed correspondent or agent banking models with their counterparts in Brazil and Colombia.

During the visit, a team from the Central Bank of Kenya (CBK), the Kenyan Ministry of Finance and the Kenya Bankers’ Association met with policymakers and regulators, as well as commercial banks and agents to discuss regulatory frameworks for the implementation of agent banking.

Some of the key lessons shared include the types of services that agents can provide, the selection and supervision of agents, and success factors and challenges. Field visits were also undertaken to provide first-hand experience on how agent banking works in practice.

As part of a financial inclusion strategy, the Central Bank of Kenya is in the process of drafting new agent banking regulations, which will allow commercial banks to use third-party agents to as a delivery channel for financial services. The current legal framework restricts the use of agents by commercial banks.

Lessons drawn from this study tour will offer valuable insight for CBK that will directly feed into the new agent banking regulations, to be implemented in January 2010.

The Kenyan delegation also shared their experiences on regulating mobile banking, an area of current interest to both Brazilian and Colombian regulators.