Agent banking accounts cross 1.4m

As banks are gradually expanding their agent banking activities, the number of agent banking accounts has already exceeded 1.4 million (14 lakh) in the country, reports BSS.

According to the quarterly data (January to March, 2018) of Bangladesh Bank, the number of accounts with agents increased to 14,68,797 from 12,14,367 in the October to December quarter of 2017.

During the January-March period, the number of agents increased to 3,216 from 2,577 in the October to December quarter and the number of bank agent outlets also increased to 4,905 from 4,157 in the same quarter.

During the quarter, deposit collection through the agent banking went up to over Tk 16.343 billion (Tk 1,634.36 crore), which was over Tk 13.993 billion (Tk 1,399.38 crore) in the October to December period.

During the January-March period, official data shows, Bangladeshi expatriates sent more than Tk 26.739 billion (Tk 2,673.99 crore) through the agent banking channel, which was over Tk 19.82 billion (Tk 1,982.02 crore) in the October-December quarter.

"Agent banking is moving fast across the country... it is providing banking services by engaging representatives under a valid agency agreement," Additional Managing Director and Chief Operating Officer of Mutual Trust Bank (MTB) M Hashem Chowdhury told the news agency on Thursday.

Terming the agent banking a great initiative of the central bank, he said generally a bank needs a number of staff and huge expenditure to operate a branch.

"If one bank can run its activities through agents, it will be helpful for both the bank and the customers," he said.

The central bank launched agent banking in 2013 by giving licence to Bank Asia. A total of 20 commercial banks have already taken licences from Bangladesh Bank while 16 banks are running their activities across the country.

The 16 commercial banks, which are currently running agent banking activities, are Dutch Bangla Bank, Bank Asia, Al-Arafah Islami Bank, Social Islami Bank, Modhumoti Bank, Mutual Trust Bank, NRB Commercial Bank, Standard Bank, Agrani Bank, First Security Islami Bank, Midland Bank, the City Bank, Islami Bank Bangladesh Limited, the Premier Bank, United Commercial Bank Limited and AB Bank.