• Tuesday, Nov 24, 2020
  • Last Update : 03:46 am

Agent banking getting popular

  • Published at 11:47 pm November 18th, 2019
agent banking
Collected

The number of outlets increased by 75.50% to 9,391, up from 5351 a year earlier

Agent banking, that takes banking services to the unbanked people, is gaining popularity among depositors, borrowers and diaspora Bangladeshis.

The concept of agent banking is to appoint an agent, by commercial banks, with small booths in areas where conventional banking service is not available.

As of September this year, deposit collection through the agent banking channel was Tk6,169 crore, up from Tk2,013 crore in the same period a year earlier. 

At the same time, the amount of loan disbursement stood at Tk306 crore, up from Tk137 crore in the same period a year ago, according to Bangladesh Bank data.

Besides, remittance sent through agent banking was Tk11,937crore, up from Tk3,514crore a year ago. 

“Agent banking is growing robustly owing to its cost-effectiveness and availability. Beside deposit collection, lending through agent banking also are increasing, which is good for rural economy,” said Md Arfan Ali, managing director of Bank Asia.

He said Now Bank Asia was enjoying 75.85% share of the total loan disbursement through agent banking. 

“We are disbursing 25% as a loan of the total deposit. We will increase it to 100% by 2021,” he added.

In future, banks would disburse SME loan, agriculture loan and micro credit through agent banking, said Md Arfan Ali, a pioneer of agent banking. 

As of September, the number of agents increased by 82.02% to 6,431, up from 3,588 in the same period a year ago. 

The number of outlets increased by 75.50% to 9,391, up from 5351 a year earlier.  

On the other hand, agent banking account rose by 123.04% to 3,964,346, up from 1,777,400 a year ago, according to Bangladesh Bank data.

19 banks have so far commenced agent banking services, but only eight gave out loans.

The central bank issued the agent banking guideline in 2013 but most banks failed to start full-fledged operations. 

"Agent banking started with focus on deposit collection. But now the central bank has already started programs encouraging banks to go for loan disbursements to boost rural economy," said Md Anwarul Islam, general manager of Bangladesh Bank.

Bank Asia, NRB Commercial Bank, Dutch-Bangla Bank, Al-Arafah Islami Bank, Modhumoti Bank, Social Islami Bank, Standard Bank, First Security Islami Bank, Agrani Bank, Mutual Trust Bank, Midland Bank, United Commercial Bank, The City Bank, AB Bank, Islami Bank Bangladesh, The Premier Bank, NRB Bank, BRAC Bank and Eastern Bank  have commenced agent banking services.

67
56
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail