Bangladesh Bank (BB) plans allowing agent banking to gear up farther its drive for financial inclusion, aiming at helping government achieve sustainable economic growth. Talking about the plan, Governor Dr Atiur Rahman told BSS that the agent bank would bring more people under the institutional financial system faster than expanding traditional banking network.

He said the central bank had already created the necessary foundation for the agent banking by introducing mobile banking that already got a good response especially from rural people. Currently, eight banks are providing mobile banking services involving the
country’s major mobile phone operators.

Rahman said the agent banking would be able to provide rural people necessary banking and financial services at their doorsteps at lower cost and faster pace than banks’ branches.

He said the agent could be an employee of banks who would offer people banking services including deposit and withdraw cash, transfer fund, pay bills, receive remittance, salary and government benefits.

Referring to India, the governor said the agent banking had achieved significant success in rapidly expanding banking services and bringing in a large number of unbanked people under the institutional financial network.

A BB official said the agent banking had already been proved a success in many countries including Australia, New Zealand, France and Brazil.

He said postal outlets in Australia are providing banking services to the people who live in the outback. New Zealand Kiwi Bank is rendering services using post offices and lottery outlets when French bank Credit Agricole is using grocery stores to provide financial services.

The official said the agent banking would be equipped with bank card reader, mobile phone, barcode scanner and a personal computer that connect with the bank’s server using a data connection. Clients of the agent banks would be given bank card to access their bank account. Identification of customers is normally done through a PIN, but could also involve biometrics.

News: The Independent/Bangladesh/03-Sep-12