Banking the Unbanked: Conceptualizing Success of the Business Correspondent Model

Abstract

The Business Correspondent (BC) model is an IT-enabled business process outsourcing initiative to provide financial services to the unbanked. It is a complex banking system involving multiple actors, system elements and settings, intended to address financial exclusion. Given the BC-Model’s potentially significant role in economic sustainability, it is important to evaluate its success. Efforts to measure the success of the BC-Model have been limited to date; this paper therefore presents a conceptual framework of BC-Model-Success consisting of six dimensions- economic, strategic, technological, customer satisfaction, employee satisfaction, and social, resulting from a three-phase study design. The relevance of the framework was empirically validated across four implementations of the BC-Model. The resulting framework provides strong theoretical foundations for understanding what BC model success is, for assisting practitioners with evaluating the success of the BC-Model and with identifying possible improvements, and for facilitating future research on the BC-Model.