In many parts of Bangladesh, the first meaningful contact people have with a bank is no longer a branch, a counter or a uniformed officer. It is a familiar face behind a small local outlet.
For Mutual Trust Bank, this shift has reshaped how banking reaches the ground. Md Shafquat Hossain, deputy managing director of the bank, explained how agent banking works in practice, where its limits lie, and why discipline at the last mile matters as much as access.
For banks, the advantage is simple. Agent outlets allow expansion into rural and remote areas at much lower cost than opening a branch. For customers, especially in villages, banking services become available nearby, saving time and travel expenses. What once required long trips can now be done at a local shop.
This combination of financial inclusion and lower costs has driven the growth of agent banking. Many people in Bangladesh are still outside the formal banking system, and agent outlets have become an easy entry point.
At the same time, banks can grow their networks without the burden of large infrastructure.
Mutual Trust Bank’s agent banking network reflects this steady approach. The bank currently works with 170 agents, including unit and master agents, operating through 179 outlets.
Deposits collected through agent banking now stand at about Tk506 crore. Lending through the channel remains limited, with around Tk28 crore disbursed so far.
In contrast, inward remittances handled through agent outlets have reached about Tk904 crore, showing how important the channel has become for migrant families.
Hossain says security is built into the system. Transactions are carried out using biometric verification, with instant SMS alerts and printed receipts for customers.
The main risk arises when customers are tempted by promises of extra profit and carry out personal dealings with agents outside the formal banking process.
To reduce this risk, the bank closely monitors agent activities and regularly runs customer awareness programmes.
If complaints are raised, the bank investigates through its internal audit team. Where misconduct is proven, actions can include cancelling an agent’s licence and taking legal steps.
On regulation, Hossain believes clear boundaries are essential. He said that allowing one person to act as an agent for multiple banks could confuse customers and weaken accountability.
Bangladesh Bank rules already prohibit such arrangements, although an agent may operate more than one outlet for the same bank.
Looking ahead, he says the future of agent banking depends on keeping agents financially viable. Banks and agents must work together to ensure the business remains sustainable.
Since its introduction in 2013, agent banking accounts nationwide have reached about 2.44 crore, with deposits totalling around Tk47,700 crore.
With many areas still without branches, agent banking is likely to continue expanding over the next five to ten years, strengthening its role in bringing banking services closer to people’s daily lives.
