Imagine living in a remote village and receiving money from loved ones abroad within minutes, without trekking to a distant bank—agent banking is making this a reality across Bangladesh, bringing financial services closer to home. In the April-June period of fiscal year 2024-25, a staggering Tk 1,83,888 crore in remittances flowed through agent banking outlets, marking a 16.15 percent jump from the previous year. Remarkably, 90 percent of these funds reached rural families, empowering communities where traditional banks are scarce. Three major banks—Islami Bank, Dutch-Bangla Bank, and Bank Asia—handled over 90 percent of these transactions, with Islami Bank alone managing more than half, thanks to its trusted reputation among migrant workers. Introduced in 2013, agent banking uses local agents equipped with point-of-sale devices and mobile apps to deliver secure, instant financial services, eliminating risky middlemen and informal channels. For people like Bibi Hazra, a 60-year-old from Shamergaon village, this means quick access to funds sent by her sons working abroad, complete with a 2.5 percent government cash incentive, all without long trips or waiting in lines. These outlets, often mini-branches with tablets and biometric scanners, process transactions swiftly, with agents earning Tk 53 per deal, handling up to Tk 6 lakh daily. Experts highlight that this system isn’t just about money—it’s a game-changer for rural life, enabling faster investments in education, healthcare, and small businesses. Dutch-Bangla Bank’s tech-savvy approach and deep rural reach, alongside Islami Bank’s strong community ties, have made them leaders in this space. The central bank praises this shift as a revolution in financial inclusion, bringing services to the unbanked and supporting the government’s push for secure, legal remittance channels. However, challenges remain: only a handful of the 30 licensed banks dominate, and women access fewer loans and services through agents, pointing to a gender gap. With a loan-to-deposit ratio of 63.61 percent, there’s room to expand credit and further boost local economies. By continuing to invest in digital tools and training, agent banking can keep growing, ensuring more families enjoy the benefits of quick, safe, and accessible financial services, fostering hope and opportunity in Bangladesh’s rural heartlands.
