News Desk: Agent banking is a system of providing services through a third party of the bank without opening a branch. The biggest advantage of agent banking is that the collateral is relatively low. Agent banking activities can be conducted in a small space. It takes less manpower. Originally the origin of the concept of agent banking was Brazil. The idea spread quickly to Chile, Colombia, Peru and Mexico. Even in the poorest countries of Africa, including Kenya. This service has also been introduced in neighboring India to bring banking services to the doorsteps of the people who are lagging behind in financial inclusion.
In areas of our country where there is no branch of relevant banking, it provides services through agent banking, especially to schools, street children, visually impaired, third gender citizens, char areas and islanders. As a result, job opportunities are increasing for the people of that particular area. Employment is increasing, unemployment rate is decreasing. Customers are able to withdraw money when their insurance term expires and also deposit premium money. Retired government officials and employees are collecting pension money from the agent branch. Teachers are raising their salaries every month. School-college students are coming here to save money whenever they get a chance. Starting from farmers, small and big traders are also opening accounts in the agent branch.
Agent banking outlets not only accept deposits, but also disburse loans, mobile top-ups, pay various utility bills, disburse remittances and receive vehicle licenses and fitness fees. Customers can also take advantage of debit cards to withdraw money from ATMs here. There is also internet banking facility. To provide these benefits, each customer’s account is linked to the bank’s core banking system. In other words, the customers of agent banking are able to avail the services of agent point as well as bank branches and ATMs.
Companies authorized under the Companies Act, IT-capable financial services, representatives of insurance companies, owners of pharmacies, owners of petrol pumps or gas stations, mobile banking representatives, offices under the Ministry of Local Government, NGOs approved under MRA, organizations under cooperative societies, Couriers under the Ministry of Posts and Telecommunications, Union Information and Service Centers may be agents. Income depends on the total transactions of agent banking. The more transactions, the higher the commission. The more accounts you can open, the more commission you will get. In addition, the more remittance payments you can make, the more commission you will get.
As the number of agent outlets is increasing, so is the number of customers and transactions. Agent banking is not limited to opening accounts and collecting deposits, it is playing an active role in keeping the rural economy afloat by encouraging income generating activities through disbursement of loans.
Two-thirds of the people in densely populated Bangladesh are still out of banking services. In the need of balanced and sustainable development of the country, there is no alternative but to bring this huge population outside the scope of banking under financial services and integrate them into the economic mainstream. In addition, as a country of emerging economic strength, it is important to bring the economic activities of all able citizens of the country into the banking channel as a prelude to rising from a middle-income country to a developed economy. And for that all the capable citizens of the country need to have bank accounts.
According to the calculations of Bangladesh Bank, more than 10 thousand crore rupees has been deposited in the agent points so far. Remittances have been distributed in excess of about 25 thousand crore. And loans have been disbursed through these points so far around Tk 720 crore. Agent banking outlets have exceeded 15,000 in the last seven years in the country. Each outlet has three employees. As a result, about 50,000 jobs have been created in agent banking services.
