A report on

Agent Banking in Bangladesh

Course code: FIN 402

Prepared for:

Palash Saha

Course Instructor

Prepared by:

Md. Asiful Hasan

ID: 1787

Parvej Chowdhury

ID: 1805

Diponkar Bhowmik

ID: 1806

Kazi Mahedi Hasan

ID: 1808

23rd Batch

Institute of Business Administration

Jahangirnagar University
Date of Submission : December 6, 2016

Executive Summary

The purpose of this report was to analyze the current position of agent banking in Bangladesh
and its upcoming growing opportunities in near future. In this report we have tried to find out the
problems are faced by the customers and the agents. We have also tried to find out the probable
solutions they are expecting from the concerned authorities to make the agent banking as an
effective one for them. Almost nine banks are in operations of agent banking still now. Among
them, Bank Asia & DBBL are in the top position in respect of number of agents, sub-agents,

To find out the opportunity and problems we visited many places outside Dhaka city such as
Madaripur, Manikgong, Dhamrai, Aushulia, Kaundiya, Singair, and so many places for survey.
We have surveyed more than one hundred customers, more than 20 agents as well as bank
officers. While conducting the survey, we found that mass people are appreciating the initiatives
of agent banking as it’s creating an opportunity to introduce the lower income group people with
banking transaction. But at the same time they have some recommendations such as including
utility bills, cash out of check, increasing the transaction limit, receiving check from the agent
point within a short period of time. Besides that at the time of survey, we also came to know that
people still now can’t trust agent Banking due to some fraudulent activity of some NGO &
financial institutions. On the other hand most people of rural area haven’t sound knowledge
about agent banking due to lack of promotional activities of the banks. If it can be believed to the
mass people that agent banking is an integral part of mainstream banking and their most
expected facilities can be added, agent banking can occupy a greater market in near future.

We would like to express our profound gratitude and deep regards to our honorable faculty
member Palash Saha for his exemplary guidance, monitoring and continuous encouragement
throughout the report.

We would also like to thank ………………..officer of Bank Asia. Besides that we would take
the opportunity to express a deep sense of gratitude to the Bank Asia agent of Kaundiya, Amtala
Bazar, Singair, Shahril, and DBBL agent of Vadail, Dhulivita, Islampur, Shekhpur, Shibchar, for
their cordial support, valuable information which helped us in completing the report. And last but
not the least, we are very grateful to those customers who gave us their valuable time while
conducting the survey.

Difference between Traditional Banking and Agent Banking:

Traditional Banking Agent Banking
In the traditional banking, it performs the It provides banking services to the bank
basic function such as depository institutions, customers through the engaged agents under a
maintain deposits, make loans, and control the valid agency agreement, rather than a tellers'
checkable deposits portion of the economy’s cashier
In this banking system finger prints are not6 Agent are not allowed any transaction by
for any transaction. cheque except finger print & card.
All types of banking operations can be done There are some limitations of operations in
in traditional banking. agent banking.
Target groups of traditional banking are Lower income group of people are the main
higher and middle class. focus of agent banking.
It provides efficient services to customers. It also provides less efficient services to
This banking systems has no transaction limit. Maximum two transactions can be made in a
Maintaining a traditional bank account is not Maintaining a agent bank account is easy for
easy for less educated people. less educated people.