Agent banking in Bangladesh continues to grow as a popular financial service, expanding banking access beyond traditional branches. According to the latest data from Bangladesh Bank, significant increases have been recorded in deposits, loans, account numbers, and transaction volumes through agent banking over the first quarter of 2025. However, an unexpected trend has emerged-a decrease in the total number of agents and agent outlets operating across the country. This paradox highlights evolving dynamics in the sector that warrant closer examination.Steady Growth in Accounts and Deposits: Agent banking was launched in Bangladesh as a strategic move to extend banking services to rural and underserved areas where conventional bank branches are scarce. The model allows banks to appoint agents who provide banking services such as deposits, withdrawals, loan disbursement, and remittance collections in remote locations.
Data from Bangladesh Bank reveals that by the end of December 2024, the number of agent banking account holders stood at 24,078,230. This number rose steadily to 24,668,255 by the end of March 2025, marking an increase of 594,390 accounts in just three months. This uptick illustrates growing customer trust in the agent banking system as an accessible and convenient alternative to traditional banking channels.
Alongside the increase in accounts, deposits through agent banking outlets also showed promising growth. Deposits rose by approximately 84.71 crore taka-from 4,195.51 crore taka in December 2024 to 4,263.30 crore taka by the end of March 2025. This rise indicates that customers are not only opening accounts but also actively using agent banking to save and manage their money.
Surge in Transactions and Loan Disbursement: Transaction volume through agent banking platforms surged considerably in the same period. At the end of December 2024, total transaction values stood at 1,35,315 crore taka. By March 2025, transactions had increased to Tk 1,41,510 crore-an addition of about 5,736 crore taka in transaction value over three months. This growth demonstrates an increase in financial activity, encompassing deposits, withdrawals, remittances, and payments facilitated by agent banking.
Loan disbursement, a critical function for financial inclusion, has also experienced positive momentum. The loan balance managed via agent banking increased by Tk 355.35 crore-from Tk 1,011.18 crore in December 2024 to Tk 1,046.72 crore in March 2025. This trend reflects the sector's growing role in providing credit to rural entrepreneurs, farmers, small business owners, and other segments traditionally excluded from formal lending.
Increasing Expatriate Income Through Agent Channels: Another noteworthy development is the increase in expatriate remittances channeled through agent banking. Remittance inflows reached 173.39 crore taka at the end of March 2025, rising by nearly 773.20 crore taka in three months. This rise suggests that overseas Bangladeshis are increasingly using agent banking to remit money to their families in rural and semi-urban areas, further strengthening the agent banking model's position as a key financial conduit.
Decline in Number of Agents and Outlets: Despite these promising financial indicators, there is a concerning decline in the number of agent banking service providers on the ground. Data shows the number of agents fell from 16,191 in December 2024 to 15,838 by March 2025-a drop of 181 agents. Similarly, the number of agent banking outlets decreased by 225 in the same period, going from 21,248 outlets to 21,023.
This decline in agents and outlets raises questions about the sustainability and accessibility of the agent banking network, especially in the rural areas where it was initially intended to create an inclusive banking ecosystem. Experts speculate that various factors may be contributing to this trend.
Possible Reasons Behind the Decline in Agents and Outlets: Industry insiders and Bangladesh Bank officials suggest several potential explanations for the drop in agent numbers and outlets: Operational Challenges: Running an agent banking outlet requires consistent coordination with banks, adherence to regulatory compliance, and effective technology management. Some agents may have found it difficult to sustain these operational requirements, leading to closures. 
Profitability Issues: The commission structure for agents may not be sufficient to cover the costs of operating the outlets, especially in remote or low-transaction areas. Agents facing low profitability may opt out or reduce the number of outlets.
Competition and Consolidation: Some agent outlets may have merged or consolidated to streamline operations or capture larger transaction volumes. This could reduce the total number of outlets while maintaining or increasing overall service capacity.
Technological Shift: With increased digitization and mobile banking penetration, some customers may be bypassing physical agents, opting for direct online transactions. This trend could reduce footfall and revenue at agent outlets, prompting closures.
Regulatory or Compliance Issues: Some agents may have failed to meet compliance standards or security requirements mandated by the central bank, leading to forced closures or suspensions.
Bangladesh Bank's Perspective and Future Plans: An official of Bangladesh Bank highlighted the significance of agent banking, stating, "Agent banking was introduced with the aim of bringing banking services to the doorsteps of common people, especially in rural and remote areas. Today, it has become an effective and popular platform, where customers not only get savings opportunities but also access to loan facilities."
The official acknowledged the recent decline in agent numbers but expressed confidence that the trend could be reversed through policy support and technological innovation. "Bangladesh Bank is continuously monitoring the agent banking ecosystem and working closely with banks to ensure sustainable growth. We encourage banks to improve agent training, provide adequate incentives, and leverage technology to enhance agent efficiency." The Role of Banks in Strengthening Agent Banking: Banks, as the primary stakeholders in agent banking, play a crucial role in shaping the trajectory of the sector. Many banks in Bangladesh have invested in expanding their agent networks, especially in hard-to-reach regions. However, challenges remain in ensuring that agents remain motivated and equipped to serve customers effectively. Some banks are experimenting with digital solutions, such as biometric verification, mobile apps for agents, and integrated transaction management systems, to reduce operational hurdles. 
Additionally, capacity-building programs aimed at educating agents on compliance, customer service, and fraud prevention are being emphasized.
Impact on Financial Inclusion Goals: Agent banking is a pivotal tool in Bangladesh's financial inclusion strategy. It is designed to bring the unbanked and underbanked populations into the formal financial system, providing them with access to savings, credit, insurance, and remittance services.
The increase in accounts, deposits, loans, and transactions signifies positive movement toward these goals. However, the reduction in agents and outlets could slow the momentum, particularly in regions where physical access remains a challenge.
To truly fulfill its promise, agent banking must strike a balance between expanding its reach and maintaining the viability of its agents. Sustainable business models for agents and continuous innovation in service delivery will be key to achieving this.
Customer Perspectives and Challenges: Feedback from customers who rely on agent banking highlights the convenience of having banking services close to their homes, eliminating the need to travel long distances to bank branches. Small farmers, micro-entrepreneurs, and migrant workers benefit significantly from the ease of deposit and loan services offered by agents.
Nevertheless, some customers report occasional issues such as limited cash availability at agents, transaction delays, and service inconsistencies. These operational challenges may discourage some users and underscore the importance of strengthening agent banking infrastructure.
Future Outlook and Recommendations: Looking ahead, stakeholders agree on the need for multi-faceted interventions to sustain and grow the agent banking ecosystem: Enhanced Agent Incentives: Improving commission structures and offering performance-based bonuses could motivate agents to expand services and maintain outlets. Technological Upgrades: Banks should invest in reliable digital platforms that simplify agent operations and provide real-time monitoring and support. Regulatory Support: Bangladesh Bank may consider reviewing regulatory frameworks to ease agent onboarding, provide risk mitigation tools, and enhance consumer protection. Training and Capacity Building: Regular training programs for agents will improve compliance, service quality, and customer trust. Customer Awareness Campaigns: Educating customers about agent banking benefits and procedures can drive adoption and transactional volume. Diversifying Services: Introducing additional financial products such as insurance, pension schemes, and bill payments through agents can increase revenue streams and agent viability.
Agent banking in Bangladesh is showing promising signs of growth in deposits, loans, account numbers, and transaction volumes. It is playing an increasingly vital role in promoting financial inclusion across rural and semi-urban areas. However, the simultaneous decline in the number of agents and outlets poses a challenge that needs urgent attention. A collaborative approach involving Bangladesh Bank, commercial banks, agents, and customers is essential to address operational and financial hurdles. With the right mix of policy support, technology, and incentives, agent banking can continue to thrive, bringing banking services closer to millions of Bangladeshis and driving inclusive economic growth.