Agent banking allows banks to provide limited banking services to underserved populations through engaged agents under an agency agreement. It involves agents providing services like cash deposits, withdrawals, utility bill payments, and local fund transfers on behalf of banks. The process involves branches contracting with agents who then provide services to customers. Benefits include increased access through more locations and flexible hours, while limitations are that agents cannot perform tasks like approving loans or dealing in foreign currency. In Bangladesh, 12 banks are licensed for agent banking and four have active operations, helping expand access to formal banking for the 62% of the population currently underserved.

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PRESENTED BY : SUMIT JOHIR
Web : www.sumitjohir.com
Email : Sumitjohir66@gmail.com

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Definition of Agent Banking
Agent Banking means providing
limited Scale banking And
financial services to the
underserved Population through
engaged agents under a valid
agency agreement

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Agent
Banking
Deposit
Cash
Cash
Withdrawal
Utility Bill
Payment
Local Fund
Transfer
Purpose of Agent Banking

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Agent Banking Model

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Process Flow
Branches
Agent
Agent
Agent
Agent
Bank

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Services of Agent Bank
• Collection of small value cash deposits and cash
• Inward foreign remittance disbursement;
• Facilitating utility bill payment
• Balance inquiry; Statement inquiry
• Loan application, credit and debit card application from
public;
• ATM Withdrawal
• Fund transfer (P2P, (P2B), (B2P), (P2G, (G2P), (B2G), (G2B)
• And also many more services

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Benefits Of Agent Banking
Easy of Access
With bank agents almost everywhere, you will no longer need to
travel long distances to visit your bank. Your nearest retail shop
could be operating as an agent
Flexible hours
Most banks close their doors by 4pm, but with bank agents, for
as long as the business premise remains open, you can do your
transactions. This will prove to be very convenient especially for
people who are busy during the day.
Cost-Effective
Transacting through bank agents will be cost-effective especially
to people who live in rural areas that are far away from banks

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Limitation of Agent Banking
• Giving final approval of
opening of bank accounts
and issuance of bank cards/
cheque
• Dealing with loan/ financial
appraisal
• Encashment of cheque and
• Dealing in Foreign currency.

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Agent Banking Scenario in Bangladesh
More than 62% of the population still lacks access to the formal financial
service. Agent banking is comparatively a new idea that can help the formal
banking sector reach out to the marginalized people through their agents. In
Bangladesh, 12 banks are licensed to provide agent banking, although there
are currently two market leaders actively engaged in expansion Bangladesh
Bank, the Central Bank of Bangladesh, has issued licenses to four private
commercial banks for running agent banking operations-
• Bank Asia
• Dutch-Bangla Bank
• South-Bangla Agriculture
• Commerce Bank & NRB Bank

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