What is the primary purpose of an agent bank?

The primary purpose of an agent bank is specifically tied to facilitating transactions and partnerships within the banking system rather than focusing on a singular action such as issuing branded cards. An agent bank acts as an intermediary for financial institutions in various capacities, typically focusing on managing transaction processes, ensuring compliance, and offering support services.

In this context, managing the risk associated with transactions is a crucial function of agent banks. They play a significant role in assessing risk for transaction parties, implementing measures to mitigate financial exposure, and enhancing the overall security of transaction environments.

While issuing cards branded with the agent bank's name can be a function related to broader banking strategies, it doesn't encapsulate the primary role that encompasses the agent bank's operations. The focus on transaction management and associated risks is where their core competencies lie, highlighting the importance of their role in ensuring smooth and secure banking operations.