Agent Banking Loan Disbursements Surge by 55.95%

Dhaka, Bangladesh – Loan disbursements through agent banking in Bangladesh witnessed a significant 55.95% year-on-year (YoY) growth, reaching Tk 24,028.31 crore by the end of December 2024, according to Bangladesh Bank (BB) data. This surge is attributed to the increasing financial accessibility for rural populations.

In comparison, loan disbursements in December 2023 stood at Tk 15,407.33 crore, reflecting a substantial rise in banking activities in rural areas.

As of December 2024, 31 banks were providing agent banking services through 21,248 outlets managed by 16,021 agents across the country. The number of agent banking accounts reached 2,40,78,230, with 1,19,82,675 belonging to female customers and 2,06,10,405 linked to rural clients.

Additionally, agent banking accounts accumulated deposits totaling Tk 41,955.81 crore, while the cumulative amount of inward remittances disbursed through agents reached Tk 1,73,390.72 crore.

Expanding Financial Inclusion

Banking experts attribute this growth to the expansion of agent banking, which is enabling previously unbanked rural populations to access financial services. A senior official from Bangladesh Bank highlighted that agent banking plays a crucial role in empowering rural women, small business owners, and remittance beneficiaries by providing them with essential banking services.

“Considering loan-to-deposit ratios and the importance of lending to women entrepreneurs, Bangladesh Bank is actively encouraging commercial banks to support CMSMEs (Cottage, Micro, Small & Medium Enterprises), women-led businesses, and marginalized communities through agent banking,” the official said.

Agent Banking’s Role in the Future

Abdul Quaium Chowdhury, Deputy Managing Director of Premier Bank PLC, emphasized the growing potential of agent banking, especially in rural areas.

“The increasing number of rural customers joining the banking system is a result of new banking services being extended through agent banking. Many banks are now offering small loans through these channels, driving up loan disbursements,” he stated.

He further added that agent banking is expected to gain even more traction in the coming years, helping to bridge the financial gap for those who remain outside traditional banking networks.

Bangladesh Bank’s Initiatives

Bangladesh Bank introduced agent banking in 2013 to provide secure and accessible banking services to underserved populations, particularly in remote areas beyond the reach of conventional banking. Through agent banking outlets, customers can avail a wide range of services, including:

• Deposits and loans
• Overseas and domestic remittances
• Utility bill payments and tax services
• Government social safety-net benefits

This model has gained widespread popularity as a cost-effective and convenient banking solution, making formal financial services accessible to the masses.

Banks operate their agent banking networks under the Prudential Guidelines for Agent Banking Operation in Bangladesh, issued by Bangladesh Bank in September 2017. These guidelines cover essential aspects such as:

• The agent approval process
• Permissible banking activities
• Regulatory compliance in areas like anti-money laundering (AML) and combating the financing of terrorism (CFT)
• Customer protection measures

By ensuring safe and effective expansion, agent banking is set to play a transformative role in financial inclusion, bringing millions of previously unbanked individuals into the formal economy.