Loan disbursement by agent banking increases by 50pc

Agent banking has become popular among  people as in last one year lending by it grew by  about 50 per cent.

During the same period, deposits grew by 20.5 per cent and loans disbursed to depositors  increased by 82 per cent.

Bangladesh Bank (BB) said that there has been a big increase in the remittances sent by expatriates. People in remote villages  are getting loans from agent banking.
Stakeholders said that there is no alternative to agent banking for financial inclusion in the country. Through agent banking it has been possible to deliver banking service to the peoples doorstep. It saves banking cost.

Customers are also getting almost all the service at the agent bank booths at low cost and quickly. As a result, the number of customers and transactions are increasing every day.

As agent banks customers increased by over 39 lakh in last one year, banks are constantly increasing agent banking activities.

In agent banking services are provided through  third parties without opening a branch. On December 9, 2013, Bangladesh Bank (BB) adopted a policy regarding the management of agent banking activities.

Initially, the policy allowed agent banking only in rural areas, in 2014,  by amending the policy, agent banking was also allowed in municipal towns and urban areas. Until now, BB allowed 31 banks to start agent banking service.

Under it, almost all the banking services are available a  little away from home at agent banking outlets or bank booths. At the agent outlet, customers can easily manage their account using his biometric or finger touch.

Agent banking facilitates all the services from account opening to depositing and withdrawal of money mobile phone recharges, money transfers (within the country), withdrawal of remittances, collection of utility bills and vehicle license and fitness fees, disbursement and recovery of various types of loans and all types of social security benefits.

No additional fees are charged for any service. Apart from this, customers of agent banking can also take advantage of debit card, check book and internet banking. As a result, the popularity of this service is increasing.

BB publishes quarterly reports on agent banking. According to the latest quarterly report, at the end of December 2023, the number of bank accounts opened by customers under agent banking stood at 2,14,19,975, which was 1,74,  75, 949 till December 2022.

In other words, the number of customers in this service increased 39,44,026 in just one year. According to the report, most of the agent banking customers live in the rural areas.

The number of customers in the rural areas  increased to 1,84,19,080. On the other hand, the number of women customers stands at 1,06,77,977.

At the end of 2022, the deposits at agent banks stood at Tk 30,158 crore, which increased to  Tk 36,358 crore at the end of 2023. In other words, the deposits in agent banks  increased by about 6,200 crores or 20.56 per cent in just one year.

On the other hand, at the end of 2023, the status of loan disbursement under agent banking stood at Tk 15407 crores, which was Tk 10307 crores till December 2022.

In other words, loan disbursement in this service  increased by about Tk 5,100 crore or 49.48 per cent in just one year.
Not only the disbursement of deposits and loans, but also the disbursement of remittances sent by expatriates under agent banking has seen a great growth.

In 2023, remittance distribution by agent banking increased by Tk 28,195 crore or 24.54 per cent.