BRAC Bank Ltd on Tuesday commenced its agent banking operation to take banking solutions to underserved population living in remote parts of the country.
The bank has started its agent banking with 10 outlets on the day covering all eight divisions of the country and set a target to increase the number to over 500 in next one year.
BRAC Bank chairman Sir Fazle Hasan Abed inaugurated the new banking channel simultaneously at all outlet through video conference from the bank's head office in the city's Tejgaon.
The bank's managing director & CEO Selim R F Hussain and head of SME banking Syed Abdul Momen were also present on the occasion.
Speaking at the programme, Mr Abed said agent banking was introduced in Latin America 20 to 25 years back while Bangladesh has been experiencing such banking for last four to five years.
He said, "We (BRAC Bank) wanted to start agent banking through BRAC's (NGO) 2,000 micro finance branches across the country, right after a circular issued by the central bank on agent banking few years ago."
However, due to some policy constraints, the move wasn't successful then, he added.
"Now, BRAC Bank's agent banking will be provided to the customers through 10 outlets, which will be increased to 50 in the next three months and to 500 to 600 within one year," the bank's chairman said.
Stating that BRAC Bank's vision of is to bring unbanked segment of the people under formal financial umbrella, Mr Abed said agent banking will play significant role to fulfil the vision through its inclusive banking model.
The bank's managing director said, "Our agent banking with biometric verification and digital capabilities will bring convenience to the people with 24/7 banking anytime and anywhere."
The bank will leverage on its expertise in SME Banking to make agent banking a widely expansive distribution channel, Mr Hussain said adding the new banking service will create new employment and contribute significantly to uplift rural economy.
BRAC Bank agent banking will offer these services to the customers - account opening, cash deposit and withdrawal, deposit plus scheme (DPS), fixed deposit receipt (FDR), fund transfer, foreign remittance, utility bills and insurance premium payment, loan disbursement and repayment, government allowance receipt, debit card and cheque book requisition, and school fee payment.
According to the central bank's 'Prudential Guidelines for Agent Banking Operation in Bangladesh', agent banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller or cashier.
It is the owner of an agent banking outlet who conducts banking transactions on behalf of a bank, it added.
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