Agent Banking means providing limited scale banking and financial services to the underserved population. Agent Banking is a part of financial inclusion for both rural and urban unbanked people to ensure the access to formal finance.
Bank engaged agents under a valid agency agreement, rather than a teller/ cashier. He is the owner of an outlet who conducts banking transactions on behalf of a bank. Bangladesh Bank has also decided to promote this complimentary channel to reach to the mass population.
Following services is covered under Agent Banking both conventional & Islamic:
• Account opening services
• Customer KYC management
• Cash deposit and withdraw
• Facilitating utility bills collection
• Fund Transfer including EFTN, RTGS
• Inward Foreign Remittance Disbursement
• Insurance premium collection
• Passport fee collection
• School banking
• Mobile Top-Up
• Balance inquiry
• Debit & Credit card issuance
• Receiving of clearing cheque
• Define different banking products
• Transaction profile & limit control
• Mobile Apps for Agent & Customers
• Generation of Mini bank statements
• Cash payment under Social Safety Net Program of the Government
• Post sanction monitoring of loan and advances and follow up of loan recovery
• Facilitating small value loan disbursement and recovery of loans, Installments
• Collection and processing of documents in relation to account opening & loan application.
• Collection of credit and debit card application from the applicant
• The Agent Banking activities would be within normal course of banking business of the commercial banks but conducted at places other than bank premises/ ATM booths To ensure the security and authentication following measures are implemented in agent banking operation.
• Bio-metric authentication & verification
• OTP Authentication for User & Customer
• Post Transactional Receipt
• Balance inquiry
• SMS to registered mobile for any transaction
• Mini statement available from agent both or at mobile
• Online AML screening for & verification of NID information
Government, Banks, NGOs, Students, Technology Company, Individuals.
Government is responsibility to ensure the basic needs of the people i.e. food, cloths, education & shelter, Now a day’s financial inclusion & technology is also the basic needs of the people. Agent Banking has made the possibilities to render the financial inclusion to the remote & deprived people through optimum utilization of technology. Government has established the network between the beneficiaries all over the country.
Different sector like Ministry of Social welfare, MOWCA are distributing allowances at the door steps of the beneficiaries. Accountabilities & security has been established. Time, expenses & leakage have been minimized and is helping the government for achieving the financial goal of the nation.
Main objective of a bank is to collect money from the depositors & lend to the entrepreneur offering different financial services. Banks earns interest from the loans, fees & commission from services offered to the customer and pay interest to the depositor, through Agent Banking banks are reaching to remote & untamed people with different financial services , So bank can do customer base stronger & earns interest, fees & commission, though small in size but huge volume which will lead the future banking business.
Financial task oriented and drives by people with a common interest can offer their services through Agent banking. It will ensure the proper financial channel and prompt service to the remote people. NGOs can discharge their accountability to the stakeholders through agent banking.
Agent banking is offering school banking for all remote schools. Through school banking financial education like, banking, expense management, deposit habit, financial management etc. is ensuring & practicing the students.It is helping to build the capabilities of financial management among the students.
Research & new development based on the needs and type of service offered by Agent banking making capable the technology company. Different Tech companies are getting new opportunity to explore their innovation & business.
Agent banking services are innovating mainly to serve the individual the people who are unable to get the banking service from the formal branch of a bank. All type of banking service is available from any agent booth but international traders. Some new services offer from Agent both which is not yet available from rural branches. ■