For people living in Sadhur Bazar, a remote coastal village in Mirsarai upazila of Chattogram, conducting personal banking activities once meant dedicating a whole day to travel to and from the nearest available bank branch.
This meant anyone looking to make even small deposits or withdrawals had to complete an arduous journey to Mirsarai Sadar or Abutorab Bazar, which are located about five kilometres away.
Besides, most locals of Sadhur have little to spare for conveyance, adding to their woes. These hurdles shaped daily life as many would wait until able to leave their work or families for the day.
This meant they often missed their designated date for deposits or struggled to meet daily expenses until making a withdrawal.
Against this backdrop, numerous residents of Sadhur – especially women and the elderly – avoided banks altogether.
However, the hardship began to ease in 2020, when BRAC Bank launched an agent banking outlet in the small village. Since then, the outlet has become the primary access point for banking services not only among residents of Sadhur, but also other communities within a 10-kilometre radius of the village.
The outlet now serves around 900 customers, roughly 40 per cent of which are women. With the bulk of its clientele comprising marginal farmers and small traders, some salaried individuals and relatives of expatriate workers also rely on the outlet.
The facility has been particularly transformative for customers like Shikha Rani Das, who regularly deposits funds for a savings scheme.
“Previously, we would travel far and then be made to wait hours for services at a state bank,” she said while expressing how frustrating it was to face such hassles despite spending time and money.
“Now, I can complete all my transactions at the agent banking outlet, which is within a 10-minute walk from my house. On average, I spend just 30 minutes to complete the whole process,” Das added.
She also explained that having close access to bank services encouraged her and others to enter such formal financial channels.
“When you can access funds from nearby, you feel relaxed about being able to make deposits or withdrawals as needed. Many women in the village are saving now,” she said.
The success of agent banking in Sadhur is not an isolated case though, as many banks have used the tool to launch their services at village markets along with town and union centres across Bangladesh.
The impact has been substantial, with most people no longer forced to travel to cities or other municipalities as such basic banking activities have now come within an arm’s reach.
Not only that, but the convenience of agent banking goes even further as they often operate beyond traditional banking hours.
And while conventional banks close on Friday and Saturday, many agent banking outlets are available throughout the week, with some even working round the clock.
The flexibility in operating hours makes the prevalence of agent banking outlets particularly beneficial for people who are daily wage earners, small traders and homemakers.
According to Hasan Shaif Uddin, in-charge of the BRAC agent banking outlet at Sadhur, the use of biometrics, like fingerprints, for authorising withdrawals has made the process easier and faster.
“Customers feel comfortable with biometric withdrawals,” he said, while adding that there are some challenges. “Many people work in agriculture or other jobs that require very intensive labour. So, subsequent damage to their fingerprints sometimes makes it harder to match.”
Agent banking has also reduced the risk of theft and related physical injuries, as people do not have to travel long distances with little or no security while carrying cash.
Furthermore, agent banking services have evolved over the years as many now offer financial instruments such as small loans, bringing formal credit to people who were previously under or underserved.
Beyond that, the friends and families of those working abroad can now receive remittance through local agent banking outlets, which also facilitate bill payments.
The model is not without flaws though as cash shortages could occur at the outlets face higher transactions, namely withdrawals.
Also, agent outlets cannot access the bank’s server to authorise transactions or confirm biometrics when there is an internet outage.
Moreover, the agent outlets do face security risks as well. In one incident, a group of robbers entered the Sadhur outlet and vandalised furniture while looting the cash in desks.
However, their attempts to break the main vault were unsuccessful, highlighting the need for stronger security measures at the outlet.
Still, the benefits of agent banking are undeniable as it allows people from all walks to access bank services, according to Md. Ayub Ali, an agent for Dutch-Bangla Bank in Chandanaish upazila of South Chattogram.
He informed that all kinds of people, including rickshaw pullers, open accounts at his outlet. “Anyone can open an account with as little as Tk 10,” the agent banker said.
Of his roughly 3,000 customers, most are from marginalised communities that had accessed bank services, such as savings accounts and loans, for the first time.
