EBL agent banking expands reach to bridge the urban-rural banking gap

Eastern Bank PLC (EBL) launched its Agent Banking operations in 2018 with a clear vision: to bring essential financial services to the unbanked and underbanked populations of Bangladesh. Our goal was to reduce dependence on physical branches, empower rural and semi-urban communities, and align closely with Bangladesh Bank's financial inclusion framework.

From the outset, we understood that millions of people in rural and semi-urban areas remained outside the formal financial system. Opening a traditional branch in every remote area was neither feasible nor cost-effective. Agent Banking offered a practical solution—leveraging local agents and technology to extend our reach, reduce service gaps, and make banking truly accessible for all.

A cornerstone of financial inclusion

Agent Banking is now at the heart of our financial inclusion strategy. It allows us to serve communities that were historically excluded from formal banking, helping them save securely, access credit, and receive remittances without travelling long distances. This approach supports our broader mission of economic empowerment, as greater access to financial services directly impacts local development and quality of life.

We focus particularly on rural and semi-urban regions where banking penetration remains low. Special attention is given to women, small entrepreneurs, farmers, and families who rely on remittances. These segments often face systemic barriers, such as limited mobility or lack of financial literacy, making localized banking solutions essential. By reaching them, we are not just delivering financial services; we are giving them tools to improve their livelihoods and plan for the future.

Infographs: TBS

Steady growth and expanding reach

Our journey began with just two agent outlets in 2018. Since then, our network has expanded steadily every year: 26 in 2019, 29 in 2020, 43 in 2021, 63 in 2022, 102 in 2023, and 118 in 2024. This growth reflects both the increasing demand for accessible banking and the trust that communities have placed in our services.

Agent Banking has effectively become an extension of our branches, bringing a full range of basic banking services to underserved locations. Today, our outlets handle services such as biometric cash deposits and withdrawals, inward foreign remittance disbursement, bill payments, fund transfers, balance inquiries, account openings (current, savings, FD, DPS), and even loan facilities. For many customers, these outlets are their first-ever interaction with formal banking.

Milestones and impact stories

One of our proudest milestones was surpassing BDT 500 crore in total transactions through our Agent Banking network—a clear indicator of the trust and engagement of our customers. Equally inspiring has been the impact of our Women Empowerment Initiative. Over the years, we have seen a growing number of our agent entrepreneurs being women. Their success has created ripple effects in their communities, from generating local employment to improving household education and spreading financial literacy.

Leveraging technology for efficiency and security

Technology has been a critical enabler of our Agent Banking operations. We use a real-time, cloud-based platform seamlessly integrated with our Core Banking system, allowing for instant updates and secure transactions. Biometric verification ensures safe and fraud-free identification, while e-KYC has simplified customer onboarding significantly. Automated printed slips, along with SMS and push notifications, provide customers with instant transaction confirmations, building transparency and trust.

Beyond operational tools, we also invest in training both agents and customers on safe banking practices, ensuring everyone—from service providers to end-users—feels confident in using our system.

Tailored products for unique needs

Understanding the needs of rural and semi-urban customers is vital. We've designed products specifically for our Agent Banking clients, including micro-savings accounts with zero maintenance fees, customized debit cards, remittance-linked incentives, and women-specific savings plans. These offerings are structured around local income cycles and spending habits, making banking more relevant and practical for their day-to-day lives.

Overcoming challenges

While our progress has been significant, the journey has not been without challenges. Limited digital literacy among rural populations remains a key barrier, as many first-time users need guidance on even basic banking services. Poor internet connectivity in remote areas sometimes affects transaction speeds and system reliability.

Recruiting and retaining competent agents is another hurdle—finding individuals with the right balance of trustworthiness, training, and commitment is not always easy in underdeveloped regions. Regulatory compliance is also an ongoing priority, especially in areas such as biometric ID verification and transaction limits. Building trust among first-time users, many of whom are unfamiliar with formal banking, is an ongoing effort that requires education, outreach, and consistent service quality.

Safeguarding security and trust

Security is paramount to our model. We conduct thorough background checks on all prospective agents and provide them with secure POS terminals. Biometric verification and OTP-based two-factor authentication are mandatory for transactions. Our internal audit team, branch representatives, and Agent Banking head office team conduct regular physical verifications of outlets, while our service quality team performs 'ghost shopping' to ensure compliance and service standards.

We also hold customer education workshops in rural areas to teach safe transaction practices, OTP use, and fraud prevention. Clear, prominent EBL branding at every outlet reinforces trust and reassures customers that they are dealing with an authorised representative.

Collaborating for a stronger ecosystem

Collaboration with regulators and stakeholders is crucial for scaling Agent Banking effectively. We work closely with Bangladesh Bank, participating in industry forums and sharing operational feedback to improve the system. We also advocate for improved digital infrastructure in remote areas to support financial inclusion. Partnerships with NGOs and development organisations have further strengthened our outreach, particularly in driving financial literacy and trust among rural communities.

Agent Banking has already transformed how rural Bangladesh interacts with financial services, but our journey is far from over. Our goal is to continue expanding our network, investing in technology, training, and tailored products to make banking even more accessible. We envision a future where every household, regardless of location, has access to formal financial services—a vision that will drive economic empowerment and inclusive growth across the country.