In a remote village by the Jamuna River, a farmer no longer hides his savings under the mattress or travels hours to reach the nearest bank branch. Instead, he deposits earnings and pays bills at a local tea stall that doubles as an agent banking outlet. In the bustling streets of Dhaka, a garment worker taps a few buttons on a mobile app to send money home, and within minutes, her elderly mother withdraws the cash from a neighborhood agent. These everyday stories capture the essence of a quiet financial revolution transforming Bangladesh: the rapid rise of alternative delivery channels (ADCs).
Banking, once confined to brick-and-mortar branches and long queues, is now available through mobile phones, ATMs, and neighborhood agents. The impact is profound-less travel, reduced hassle, more time saved, and greater peace of mind. For millions, ADCs are not simply about convenience; they are unlocking new pathways of economic inclusion and empowerment.
Bangladesh's journey with ADCs began as a bold response to a long-standing challenge: how to reach the vast population still excluded from the formal banking system. ADCs encompass a wide range of innovations including agent banking, automated teller machines (ATMs), cash recycling machines (CRMs), internet and mobile banking, digital financial services (DFS), smart kiosks, call centers, and more. Together, these tools are extending the reach of financial services to the very last mile.
ATMs first appeared in Bangladesh in the early 2000s, with private commercial banks leading the charge in urban areas. Today, more than 13,655 ATMs and 4,000 CRMs across the country facilitate instant cash withdrawals, fund transfers, balance inquiries, and utility payments. Despite the growing popularity of cashless options, ATMs remain a trusted interface, particularly in urban and semi-urban communities.
Bank cards-debit, credit, prepaid, and now contactless NFC-enabled ones-continue to play a pivotal role in expanding cashless transactions. As of 2025, nearly 50 million cards are in circulation, including 39.6 million debit, 2.7 million credit, and 7.5 million prepaid cards. These support both online and offline transactions, backed by Bangladesh Bank's EMV chip and contactless payment guidelines, which ensure enhanced security.
Internet banking has also witnessed remarkable growth. From just 2 million users in 2018, the number soared to over 10 million by the end of 2024, according to Bangladesh Bank. Transaction volumes now exceed BDT 100,000 crore monthly. Customers can transfer funds, pay bills, shop online, invest, and access financial planning tools-all from their devices, anywhere, anytime. Mobile banking apps and DFS platforms have become the new norm for tech-savvy users seeking speed, transparency, and control over their finances.
Agent banking stands out as one of the most inclusive and transformative components of the ADC landscape. Launched in 2013 and formalized in 2017, this model allows local businesses and individuals to serve as banking agents, offering account opening, deposits, remittance transfers, and even microloans. As of March 2025, 31 banks have engaged 15,838 agents operating 21,023 outlets across the country. These agents have opened nearly 25 million accounts-over 85% of them in rural areas, and almost half held by women. Deposits via agent banking have reached BDT 430 billion, while loans disbursed crossed BDT 266 billion-a 61% year-on-year growth. Importantly, agent banking channels have also attracted over BDT 1.81 trillion in inward remittances, offering a secure and formal alternative to informal hundi systems.
Mobile financial services (MFS), launched in 2011, have evolved from basic money transfers to a diverse suite of offerings including bill payments, remittances, savings, and credit. Backed by enabling regulations from Bangladesh Bank, MFS platforms now serve 87 million active users out of 240 million registered accounts. In 2024 alone, MFS transactions totaled BDT 17.37 trillion-an increase of 28% from the previous year. With widespread mobile and internet access, smartphones are turning into portable banks, particularly for low-income and remote users. However, with nearly 45% of adults still unbanked, significant potential for further expansion remains.
Despite these achievements, challenges persist. Cyber threats such as phishing and malware attacks continue to jeopardize customer data and disrupt services. The Cyber Security Act 2023 and updated ICT guidelines from Bangladesh Bank have strengthened protections, but vigilance remains critical. Financial literacy also lags-only 28% of the population is considered financially literate. Many, especially rural women and the elderly, lack the digital awareness needed to safely use mobile and internet banking. Targeted education campaigns, school banking initiatives, and inclusive literacy programs are essential to closing these gaps.
At a village shop where digital finance takes root, a shopkeeper-turned-agent helps a farmer deposit savings and pay his electricity bill using just a fingerprint. The farmer leaves with a printed receipt and a smile. Later, the agent assists a young mother in setting up her first mobile wallet, empowering her to manage money independently. These moments reflect the real value of ADCs-transforming lives and communities one transaction at a time.
The future of Bangladesh's banking system lies in making these channels even more inclusive, resilient, and sustainable. Regulators must continue to adapt policies to support innovation while safeguarding users. Banks and fintech companies must prioritize last-mile service delivery, especially for the poor, the elderly, and women. Strategic partnerships across sectors can deepen financial access and integrate digital finance into everyday life.
Ultimately, the success of alternative delivery channels depends on a people-first mindset. Technology alone is not the goal. It is a tool-one that must be used to empower, include, and uplift. ADCs are not merely digital conveniences; they are enablers of socio-economic transformation. By combining agent banking, mobile and internet platforms, card-based access, kiosks, and responsive call centers, Bangladesh is crafting a financial ecosystem built on access, trust, and dignity.
The banking revolution in Bangladesh is well underway. What remains is to ensure that no one is left behind.
The writer is a contributor
