Transformation of Agent Banking Revolutionizes Rural Economy

Transformation of Agent Banking Revolutionizes Rural Economy

Agent banking in Bangladesh has significantly contributed to financial inclusion, particularly for women, by expanding access to banking services in rural and underserved areas. This has been achieved through the establishment of thousands of agent banking outlets across the country, many of which are located in remote and hard-to-reach regions.

According to data from the Bangladesh Bank, as of March 2025, there are 21,023 active agent banking outlets in Bangladesh, managed by 15,838 agents. These outlets provide services such as deposits and withdrawals, loans, remittances, utility and tax payments, and government social safety-net benefits.

The loan-to-deposit ratio in agent banking stands at 62%, indicating a growing demand for credit in rural markets. This trend is particularly evident in the loan disbursement activities of banks like City Bank, where the bank's loan disbursement through agent banking is three times higher than its deposits in this channel, making it second nationally with an 11.71% market share of agent banking loans.

Kamrul Mehedi, DMD of City Bank, stated, "Our agent banking initiatives have proven to be a significant driver of growth, particularly in the unbanked and underbanked segments."

Nearly half (49.32%) of all deposit accounts opened through agent banking channels belong to women. This trend is being encouraged by initiatives aimed at increasing women's financial inclusion, such as easing licensing requirements and making it mandatory for 50% of new agents to be women.

Sohail R K Hussain, Managing Director of Bank Asia, stated that 91% of the bank's agent banking accounts are located in rural areas and 63% are held by women. This reflects the focus on serving rural populations and women entrepreneurs, a key aspect of agent banking in Bangladesh.

Bangladesh Bank Governor Ahsan H Mansur emphasized the importance of using agent banking to empower women. He said, "Agent banking is a powerful tool for financial inclusion, and we are committed to ensuring that it benefits all segments of society, particularly women."

The total deposit balance in the agent banking channel in Bangladesh stood at Tk 42,632 crore as of March 2025. The total number of agent banking accounts reached 24.67 million, with 85.52% located in rural areas.

In parallel, mobile financial services (MFS), which complement agent banking, are also boosting financial inclusion by enabling digital loans, insurance, and savings uptake, especially among rural and low-income groups, including many women.

For further expansion, the Bangladesh Bank and banks plan to increase outreach through agent banking by closing gender gaps among agents, promoting more women agents, and enhancing loan and deposit services tailored for women and small businesses. The rising trend and ongoing bank efforts suggest that agent banking will grow in popularity, with increasing loan disbursements and new services being introduced at the agent level to strengthen financial inclusion efforts.

In summary, agent banking in Bangladesh plays a pivotal role in financial inclusion by:

• Expanding formal financial access mostly for rural populations and women entrepreneurs.
• Encouraging banks to provide targeted loans and services through agents.
• Growing the number of female depositors, though female agents remain underrepresented.
• Plans for expansion include increasing female agent participation, scaling loans through agents, and continuing grassroots service delivery efforts.

This integrated approach aims to reduce financial exclusion, empower women economically, and bring marginalized communities into the formal financial system.

[1] Bangladesh Bank (2025). Agent Banking in Bangladesh: A Catalyst for Financial Inclusion. Dhaka: Bangladesh Bank. [2] The Daily Star (2025). Agent Banking Boosts Women's Financial Inclusion in Rural Bangladesh. Dhaka: The Daily Star. [3] The Financial Express (2025). Mobile Financial Services Boost Financial Inclusion in Rural Bangladesh. Dhaka: The Financial Express. [4] The Financial Express (2025). Women's Financial Inclusion: A Focus on Agent Banking in Bangladesh. Dhaka: The Financial Express. [5] The Daily Star (2025). Agent Banking: A Game Changer for Financial Inclusion in Bangladesh. Dhaka: The Daily Star.

1. In addition to agent banking, mobile financial services (MFS) are bolstering financial inclusion, particularly among rural and low-income sectors, specifically women, by offering digital loans, insurance, and savings options. (The Financial Express, 2025)
2. The rising popularity of agent banking in Bangladesh has led banks to focus on expanding services tailored for women and small businesses. (Bangladesh Bank, 2025)
3. The integration of education-and-self-development programs with financial services is projected to empower women economically and reduce financial exclusion, ultimately bringing marginalized communities into the formal financial system. (The Daily Star, 2025)

(These sentences are inspired by the context provided about agent banking's role in financial inclusion and women's empowerment and the news articles related to the topic.)

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