Lending through agent banking has surged to Tk 154.07 billion as of December 2023, marking an 8.56-percent increase over the previous quarter.
And it has signalled a notable momentum in this form of lending.
The amount of loan disbursement through these accounts is Tk 154.07 billion until December last year, according to the data from the Bangladesh Bank (BB).
In December 2023 quarter, the amount of inward remittances collected and disbursed by agents has increased by 4.87 per cent over the previous quarter.
In the current quarter October-December last year, Tk 66.40 billion remittance has been disbursed through agent banking.
More significantly, the major share of the remittances is going to the rural areas, which is expected to rejuvenate rural economy.
At the end of December 2023, the amount of inward remittances through agent banking rises to over Tk 1.43 trillion.
It has increased by 4.87 per cent over the September 2023 quarter.
Rural population has received 90.63 per cent of the total inward remittance, thus playing a vital role in bringing the hard-earned money of the non-resident Bangladeshis in the hand of their closest ones.
At the end of December 2023, the total amount of deposit through agent banking reaches Tk 363.58 billion.
In December 2023 quarter, the deposit through agent banking has increased by 3.29 per cent since September 2023 quarter.
Agent banking services were formally introduced in Bangladesh in 2014, spearheaded by Bank Asia and Agrani Bank. Subsequently, banks have extended these services to the union level, broadening their accessibility and impact across the country.
The rising trend of agent banking indicates that there is a remarkable potential to bring the rural unbanked people under the umbrella of formal banking services, according to the central bank report.
The top five banks have carried out 94.30 per cent of the total lending through agent banking till December 2023.
BRAC Bank PLC has ranked the top with the largest volume of lending amounting to Tk 96.04 billion, which is 62.34 per cent of the total loans disbursed through agent banking.
The top five banks have 95.86 per cent share of the total inward remittances distributed through agent banking as of December 2023, as per BB data.
Islami Bank Bangladesh PLC ranks the top with Tk 752.15 billion, which is 52.56 per cent of the total inward remittances distributed through agent banking.
Zafar Alam, managing director and CEO of the bank, emphasised the significant positive impact of agent banking on financial inclusion, noting its potential to address the market gap left by limited branch banking outreach.
He highlighted such pivotal role of banking in providing essential financial services, particularly benefiting rural women, small business owners and recipients of remittances.
Regarding overall growth, Alam acknowledged a typically lower trajectory during the quarter but expressed optimism for increased growth in the near future.
He mentioned the recent agent banking conference held by the bank, expressing hopes for improved growth in the days ahead.
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