Women in Bangladesh are increasingly embracing agent banking, with nearly equal participation to men, according to the latest data from Bangladesh Bank. As of March 2024, agent banking accounts totaled 22,250,305, with female customers holding 11,060,879 accounts, representing 49.71% of the total. This trend reflects growing financial inclusion among women, who are accessing banking services at rates comparable to their male counterparts.
The central bank’s report highlights that rural areas have particularly benefited from this growth, with 86.05% (19,145,672) of these accounts held by rural customers. This underscores the role of agent banking in extending financial services to underserved regions. In addition to the surge in account openings, loan disbursements through agent banking saw a significant increase. Between January and March 2024, loan disbursements grew by 41.27% compared to a 16.52% growth in deposit collection for the same period the previous year. This growth is indicative of the expanding role of agent banking in facilitating credit access.
Bangladesh Bank data shows that the deposit balance in agent banking outlets rose by Tk5,228 crore, reaching Tk36,870 crore in the first quarter of 2024, up from Tk31,641 crore in the same period in 2023. This marks a slight increase from Tk36,358 crore recorded in the October-December quarter of 2023. Similarly, loan disbursements through agent banking increased to Tk16,482 crore in January-March 2024, up from Tk11,667 crore in the same period of 2023, and Tk15,407 crore in December 2023. The volume of lending and deposits rose by 6.98% and 1.41% respectively from the previous quarter.
The Bangladesh Bank’s quarterly report emphasized that lending through agent banking significantly aids rural customers, addressing one of the critical challenges of financial inclusion: access to finance. By March 2024, rural customers received Tk10,679 crore, or 64.79% of the total loans disbursed through agent banking. This aligns with the objective of enhancing financial access for rural populations. Savings accounts constituted the majority of the accounts, with the highest balance amounts. Additionally, remittance collection through agents increased, with Tk149,916 crore disbursed as of March 2024.
Agent banking, introduced by Bangladesh Bank in 2013, offers a cost-effective alternative to traditional banking by allowing customers to access various banking services in real-time through an agent. Presently, 31 banks operate agent banking activities in Bangladesh, with the top five banks accounting for over 73% of the total outlets. As of March 2024, there were 15,835 agents and 21,613 outlets across the country, further expanding the reach and impact of agent banking in promoting financial inclusion.
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