BRAC Bank agent banking connects underserved communities to formal finance

Sketch: TBS

I take great pride in reflecting on BRAC Bank's journey with Agent Banking, which we launched in 2018. From the outset, our goal was to expand financial inclusion across Bangladesh and bring banking services to underserved and unserved populations, especially in remote areas where traditional branches could not reach. This initiative was a natural extension of BRAC Bank's vision to be the most trusted, innovative, and inclusive bank in Bangladesh.

Inclusiveness has always been at the core of our mission. Agent Banking allows us to broaden our customer base, support key business segments such as SME, Retail, and Corporate Banking, and bring more people under formal financial services. Today, our Agent Banking network covers all 64 districts and over 90% of upazilas, with more than 80% of outlets in rural areas. Rural customers now make up 73% of our Agent Banking customer base, reinforcing our commitment to grassroots financial empowerment.

As the only bank in Bangladesh founded specifically to support SMEs—the 'missing middle' identified by our founder, Sir Fazle Hasan Abed—Agent Banking is vital to our long-term strategy. By extending our footprint beyond urban centres, we not only promote financial literacy but also uplift unbanked communities, contributing to national development and supporting our vision of building a poverty-free Bangladesh.

Over the years, we have seen remarkable success stories emerge from our Agent Banking operations. One such example is our involvement in the "Making Markets Work for the Chars" project. In places like Char Fulchari in Gaibandha—where basic amenities like electricity and connectivity have only recently arrived—we have enabled marginal, seasonal farmers to access formal financial services. Through Agent Banking, we've provided access to essential banking facilities and financing, improving livelihoods and fostering economic empowerment in these remote communities.

Our collaboration between the Agricultural Finance and Agent Banking teams has also enhanced access to finance for last-mile farmers under Bangladesh Bank's special agricultural credit scheme. By offering loans at preferential rates, we have opened over 8,400 accounts, helping marginal farmers access affordable financing and boosting rural economic development.

We are also addressing the vital remittance sector. Many remittance beneficiaries, especially women in rural areas, lacked awareness of formal banking channels. Through community programs such as Uthan Boithok (courtyard meetings), we provide financial literacy sessions and help them open accounts to receive remittances securely. This reduces reliance on risky informal channels like hundi while increasing financial security. To date, over 15,000 accounts have been opened for remittance recipients, supported by more than 100 financial literacy programs.

Agent Banking is equally beneficial for businesses. We work with corporate clients—particularly in pharmaceuticals, multinational companies, and local corporates—to provide digital collection solutions. This reduces cash dependency, minimizes risks such as counterfeit currency, and simplifies operations. Our integration with corporate billers and instant cash solutions allows clients to focus on their core business while we ensure secure collections directly through our agent network.
We also remain committed to empowering women through our TARA Agent Model. By encouraging female entrepreneurs, especially in rural communities, we aim to make banking more inclusive for women. Today, 80 TARA Agents run 90 outlets dedicated to onboarding and serving female customers, creating new pathways for financial independence.

Our impact on rural credit delivery is another area of leadership—Agent Banking accounts for nearly two-thirds of rural loan disbursements across the entire industry. This achievement underscores the trust we have earned in underserved communities and the scale of our operations.

Technology has been instrumental in making our services seamless and accessible. We've introduced paperless eKYC onboarding at all Agent Banking outlets, enabling instant account opening even in remote villages. Customers receive debit cards, cheque books, and access to our mobile banking app "Astha," along with facilities such as instant term deposits and student file processing—all digitally enabled.

For agents, we have launched web- and app-based modules to automate onboarding, track requisitions, manage complaints, generate reports, and provide interactive e-learning. These tools simplify daily operations, improve efficiency, and enhance service delivery across our network.

Security remains paramount. Our dedicated Agent Banking System (ABS) is designed for rural operations, with features like biometric verification compliant with ISO standards, two-factor authentication, SMS transaction alerts, and printed receipts for every transaction. We've eliminated handwritten slips entirely to prevent fraud. Moreover, our IT security team, supported by ethical hackers, monitors systems round the clock to protect customer data and ensure safe banking.

Despite these achievements, challenges remain. Raising awareness about the safe and convenient use of Agent Banking is crucial. Many customers are still unfamiliar with its benefits or cautious about digital transactions. Liquidity management for agents, particularly those operating during weekends or holidays, is another operational hurdle, as they often function far from nearby branches. We also see an opportunity to support agents further through affordable insurance schemes and tax incentives to strengthen their sustainability and encourage more entrepreneurship in rural areas.

Our journey with Agent Banking has been transformative. By combining technology, security, financial literacy, and inclusion, we are bridging the gap between formal banking and the communities that need it most. While we have made significant progress, we know that financial inclusion is an ongoing mission. We remain steadfast in our commitment to deepening trust, expanding outreach, and aligning with our core vision of accessible, inclusive finance for every citizen of Bangladesh.