Deposits and lending through agent banking outlets rose in November 2023 compared with the previous month. Bangladesh Bank (BB) data shows, deposits balance in agent banking outlets increased to Tk 35,169 crore in November from Tk 35,050 crore in October.
Lending through agent banking outlets has increased by 5.56 percent in November against deposit growth of 0.33 percent in October.
Bangladesh Bank data shows, outlets disbursed Tk 854.9 crore in November against their disbursement of Tk 809 crore in the previous month.
The lending-to-deposit ratio indicates that agent banking window is serving banks purpose of lending more than deposit collection, the BB report said.
Since access to finance is one of the key challenges of financial inclusion, lending through agent banking is explicitly beneficial for rural customers in developing countries, the BB in its quarterly report said.
As of November 2023, rural customers received Tk 565 crore or 66 percent of the total loans disbursed through agent banking channel.
According to central bank data, the number of deposit accounts through agent banking was 2.11 crore as of November 2023. The total number of agent banking deposit accounts held by men was 1,03,65,297, by women 1,05,03,850 and by others 3,25,600.
It indicates that more female customers are coming forward to opening accounts and getting almost equal access to the financial services through agent banking compared with male customers, the BB report said.
The highest number of accounts and the highest amount of balance were in the form of savings.
Remittance collection through agents also increased in the reporting month.
At the end of November 2023, the amount of inward remittances through agent banking rose to Tk 2,124 crore from Tk 2,047 crore in October and Tk 1,660 crore in September.
In November, the total number of transactions through agent banking outlets was 1,45,80,631. Agent banking transactions decreased by Tk 15.5 crore to reach Tk 70,444 crore in November compared with that in the previous month.
Agent banking is an alternative way to provide banking services to underprivileged population in the rural areas especially to those living in remote areas. The Bangladesh Bank introduced agent banking in 2013.
Compared with the traditional banking system, it is a less costly system where customers are able to receive various banking services on a real-time basis from the platform through an agent, the BB in a report said.
At present, 31 banks are operating agent banking activities in Bangladesh. Of them, the top five banks registered more than 70 per cent of the total outlets. As of November 2023, the total number of agents and outlets were 15,581 and 21,506 respectively.
