Agent Banking

Group Name:
Catalyst
1. Md. Arif Hasan Khan
2. S. M. Shalahuddin Ahmed
3. Md. Aminul Islam
4. Md. Mahfuz Bin Bakhtiar
5. Md. Rasheduzzaman
6. Md. Meftaul Zinnah
7. Md. Hasan Majumdar
8. Md. Mahfizur Rahman
presentation is designed and prepared by
Arif Hasan Khan

At a glance
Financial Exclusion
Financial Inclusion
Agent Banking
Arif Hasan Khan

Financial
Exclusion
No
Savings
No
Insurance
No access to
money advice
No affordable
credit
No bank
account
No
assets
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• Drivers of financial exclusion
Most Frequent: Low income, Nil or Low savings,
Lack of assets, Unemployment, Use of
inappropriate products
Less Frequent: Psychological/disability issues,
Feeling of being excluded, Indigenous /Ethnic
issues, Geographical remoteness, Lack of
PC/Internet Access.
• Personal and Social Factors:
 Cultural norms, Gender, Age, Legal identity.
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FinancialInclusion Definition
“The process of ensuring access to financial services and
timely and adequate credit where needed by vulnerable
groups such as weaker sections and low income groups at
an affordable cost”
1
2 3
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Enthusiasm
Will
Skills
Implementations
Networking
Modernization
•Threats
•Opportunities
•Commitment
•Basics
•Programs
•Technology
•New Work
Cultures
•Cooperation
•Purchasing
•Production
•Marketing
•Selling
•Cooperation
•Contents
•Benefits
Presentation is designed and prepared by
Arif Hasan Khan

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Presentation is designed and prepared by
Arif Hasan Khan

Steps Taken
Cooperative Movement
Nationalization of Banks
Lead Bank Scheme
Service Area Approach
What was Lacking
Absence of Modern Technology
Inadequate reach and coverage
Delivery Mechanism
Well defined business model
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Focus on Inclusive Growth
Banking Technology has arrived
Realization that poor is bankable
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-Account
Opening
-Transactions
Data Captured
Through Laptop
& POS/POT
Service
provider
Intermediate
Server
Security
Equipment
IN
CB
Server
Activity is
performed by BC
-Laptop for A/C
opening
-POS/POT for
transaction
Service
provider’s
(Intermediate
server File
converted into
format of CB)
Villages
Data is uploaded into CB server
and Interest Calculation done
centrally and details sent back
to POS and interested to the
smart card of customer.
Arif Hasan Khan

NEXT Presenter
Arif Hasan Khan

• Coverage
• Access to Diversified Financial Products and
Services
• Delivery Model – Day to Day Transactions
• Cost-Effective Technology
• Customer education/financial advice
• Change in banker’s mindset
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• Scaling up of activities
• Appropriate business model yet to evolve
• BC model too restrictive
• Limitation of cash delivery points
• Lack of interest / Involvement of Big
Technology Players
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• Appropriate Technology
• Appropriate and Efficient Delivery Model
• Mainstream bank’s determination and
involvement
• Strong collaboration among banks, technical
service provider.
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• The agent banking model is designed to assist banks to lower their cost of
offering banking services that has been a major impediment to inclusion
while at the same time improving their earnings as more peoples are
offered an opportunity to access financial services.
Agent Banking
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Delivery channels of Agent Banking
POS-enabled
bank agent :
• This is an agent managed by a bank that uses a payment card
to identify customers.
Mobile phone-
enabled agent:
• This is an agent managed by a bank that uses a cell phone to identify
customers.
Mobile wallet:
• This is an agent that is often managed by a telecom.
Bank-provided
account linked
to a mobile
wallet:
• This is a bank account that is linked to a mobile wallet.
Our analysis focuses on four types of agent banking delivery channels:
Arif Hasan Khan

pharmacies
supermarkets
convenience
stores
lottery outlets
post offices
Banking agents can be
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Agent Selection Criteria
The following issues should be taken into consideration for selecting agents:
•Competence to implement and support the proposed activities
•Financial soundness and cash handling capability;
•Ability to meet commitments under adverse conditions
•Business reputation
•Ability to offer technology based financial services
•Security and internal control, audit coverage, reporting and monitoring capacity
•Loan defaulter or the convicted person can not apply for agency ship
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Transaction process
• Client withdraws money (“cash-out” transaction): agent account is credited in
same amount.
• Client deposits money (“cash-in” transaction): agent account is debited in same
amount.
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Financial services offered by banking
agents in various countries:
• Loan Payments
• Withdrawals
• Execution of collection services
• Receiving and forwarding loan requests and financing
requests
• Deposits to a customer’s or third party’s account
• Opening and closing of simplified bank accounts
Arif Hasan Khan

• Payments on goods or services
• Purchase of pre-paid debit cards
• Balance inquiries
• Bank statements
• Transfers of funds between parties
• Receiving and forwarding credit card applications
Financial services offered by banking
agents in various countries:
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Models used to manage banking agent networks
Financial
Institution
Management
Company
Agent Agent Agent Agent
Financial
Institution
Agent Agent Agent Agent
Direct Model
Indirect Model
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Challenges & Threats of agent banking in
Bangladesh:
• Insufficient volume of transactions
• Lack of customer awareness
• Infrastructure development and coverage
• ICT platforms and sharing arrangements
• Pricing and accessibility
• Liquidity management
• Threat of robbery is high
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• the economy is largely cash-based
• The bank charges high fees for this service, adding substantially to
the costs of agents
• the volume of transactions conducted through agents remains fairly
low
• The regulation does not allow banks to acquire new clients through
agents
• very difficult to ensure agent banking systems work in the very
remote areas
• Agents who are skilled enough to implement the payment system
may also be savvy enough to manipulate it.
Challenges & Threats of agent banking in
Bangladesh:
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Advantages of Agent Banking
• To achieve growth and equity
• Get rid of poverty
• To attract global market players to our country
• To increase the employment and business
opportunity
• To baring more transparency in the system
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• Financial inclusion by agent banking is a win-
win situation for the financially excluded,
corporates, the govt. and the Banks.
• Bankers can support by financing the agri
products including their preservation and
sales.
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• Easy to Banking services and products including
consumer loans and micro-finance services
• Easy access and spread by agent banking of credit
cards, debit cards etc. Bill payments of electricity,
utilities etc.
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Last Presenter
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Decision
• Bangladesh stands second among South Asian
nations in ensuring access to financial services
for its citizens, a recent study found.
• Economic growth of a country plays a pivotal
role for greater financial inclusion, and it is
possible by agent banking in our country.
Arif Hasan Khan

• Around 66 percent of the households in
Bangladesh now have access to services
including credit, savings and insurance from
banks or microfinance institutions (MFIs) and
cooperatives
Decision
Arif Hasan Khan

• So we can say that agent banking can be a
new era of Bangladesh for financial inclusive.
• It is a new mechanism for money create and
transaction.
Arif Hasan Khan

That’s all for the time being
Everybody
Arif Hasan Khan

Agent Banking

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