Islami Bank boasts over 5.0m clients under its Agent Banking

Agent banking is the easiest way of bringing dynamism in economic activities, creation of employment opportunities, alleviation of poverty, and contribution to economic growth by promoting financial inclusion of the people in far-flung areas and out of the reach of banking services, says the bank in a statement.

Islami Bank Bangladesh PLC has a remarkable history of success in agent banking. In 2013, Bangladesh Bank issued the first policy on agent banking services. Following this, agent banking operations were introduced in Bangladesh in 2014. Islami Bank obtained the initial permission to open five pilot outlets. Complying with regulatory requirements, Islami Bank opened its first agent banking outlet in 2017 at Birulia, Savar, in Dhaka, marking the beginning of its agent banking operations. The overwhelming response from the public led to a rapid expansion of outlets. In just eight years, the number of agent outlets reached 2,783 which account for 13 per cent of the total agent outlets in the country. These outlets currently operate under 310 branches.

Islami Bank is delivering agent banking services starting from the southernmost town of the country, St. Martin's Island, to various char (small island) areas of the country like Urirchar and Manpura, islands like Hatia, Sandwip and Sundarbans as well as remote areas of hilly and Haor regions including Baghaichhari Upazila. Currently, over 5.0 million (50 lakh) clients across 472 upazilas are connected to Islami Bank's agent banking network, with total deposits amounting to BDT 165.82 billion (16,582 crore). In 2024, Islami Bank's agent outlets collected BDT 22.77 billion (2,277 crore) fresh deposits.

Clients at agent outlets enjoy all the standard banking facilities, including account opening, deposits, withdrawals, remittance payments, bill payments, account balance inquiries, mini statements, internet banking, cheque books, debit and credit cards, clearing cheques, and loan applications, disbursements, and instalment collections. In short, except import-export trade, almost all types of banking services approved by the central bank are available at agent outlets.

Islami Bank operates micro-investment programmes through its agent outlets. The bank has already initiated investment activities in 138 agent outlets. In 2024, these outlets distributed new investments totaling BDT 3.65 billion (365 crore), achieving a remarkable 99 per cent recovery rate. The current outstanding amount of investments distributed through agent outlets stands at approximately BDT 4.0 billion (400 crore).

Islami Bank plans to expand SME investments and implement various welfare-oriented initiatives through its agent banking network. The bank aims to finance 320 types of products in both agricultural and non-agricultural sectors, adhering to Islamic Shariah-compliant practices. In addition to its investment activities, the bank is planning welfare programmes in education, training, health, disaster relief and rehabilitation, and environmental conservation.

Islami Bank also holds a leading position in remittance collection through agent banking services. As of December 2024, the bank collected and distributed remittances amounting to BDT 170 billion (17,000 crore), representing 56% of the total remittances garnered through agent banking nationwide. By facilitating remittance collection and distribution, Islami Bank has significantly contributed to the country's economy while setting new milestones in the agent banking sector.

Currently, on average, 150,000 customers receive banking services daily from Islami Bank's agent outlets. These services include cash withdrawals via POS, internet banking registration, cash-in and cash-out through CellFin, RTGS transactions, and ATM services. Islami Bank's agent banking is immensely popular in remote areas for its comprehensive and cost-effective banking services close to home.

Islami Bank's agent outlets are especially favoured by customers for several reasons. Many outlets are equipped with ATM booths based on locational importance that has enhanced their acceptance among customers. Moreover, the bank strictly adheres to central bank regulations and leverages modern technology to deliver services. Examples include ensuring services through Bangla QR codes and initiating API-driven online transactions with fast-moving consumer goods companies and other entities.

To ensure the complete security of customers' deposits, Islami Bank has implemented two-factor authentication for transactions, along with national ID verification, OTP (one-time password), and biometric fingerprint authentication. These measures have earned customers' trust by guaranteeing the safety of their deposits and transactions.