SAJIBUR RAHMAN
The country witnessed a significant rise in agent-banking transactions, recording an 18.79 per cent increase in October of this year, compared to the previous month, according to data released by the Bangladesh Bank.
The surge in activity was notable, with transactions soaring by 33.71 per cent in October compared to September.
The volume of these banking transactions stood at Tk 704.59 billion in October, marking a climb from Tk 593.12 billion in September, as per the Bangladesh Bank data.
Several key banking indicators utilizing this channel, including deposit collections, loan disbursement and crucial remittance, also experienced an upswing in October, according to the latest Bangladesh Bank data.
However, the deposit collections stood at Tk 350.50 billion in October compared to September's Tk 345.334 billion.
Presently, 31 scheduled banks offer agent banking facilities, serving as a secure alternative channel for banking services, especially in rural and remote areas.
Loan disbursement through this alternative banking channel saw a significant upturn of 20.5 per cent in October, surpassing Tk 8.09 billion compared to September's disbursement of over Tk 6.71 billion.
Additionally, crucial remittance inflow showed an increase of 23.3 per cent in October, standing at over Tk 20.47 billion, compared to Tk 16.6 billion in September.
As of October, the total number of accounts through this agent banking reached 20.93 million, marking a rise from 20.68 million in September. Micro-credits are increasingly disbursed through agent banking outlets compared to traditional banking systems.
Agent banking services were formally introduced in Bangladesh in 2014, pioneered by Bank Asia and Agrani Bank. Subsequently, other banks have expanded these services to the union level, widening their accessibility across the country.
According to central bank data, in October, there were 15,542 agents operating through 21,463 outlets, compared to 15,539 agents with 21,448 outlets in September.
Urban areas hosted 2,480 agents while rural areas had 13,062 agents in October, showcasing an increase from September's count of 2,485 agents in urban areas and 13,054 agents in rural areas.
In October, agent banking services facilitated payments for electricity, gas, and water bills totaling Tk 1.56 billion, up from Tk 1.18 billion in September.
It was revealed that agent banking is more prevalent in Dhaka and Chattogram divisions compared to other divisions.
Private banks lead in the number of agents and outlets, with state-owned banks occupying the last position.
Private commercial banks (PCBs) boast the highest number of agents, constituting 10,833 or 70 per cent of the total, while Islamic banks (IBs) possess 3,916 agents, making up 25 per cent of the total. State-owned banks (SOBs) account for 793 agents or 5.0 per cent of the total.
PCBs also dominate in outlets, holding 16,523 or 77 per cent of the total, while IBs possess 4,147 outlets (19 per cent of the total), and SOBs manage 793 outlets (4.0 per cent of the total).
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