Bangladesh’s once fast-growing agent banking network has seen its expansion slow, with both the number of agents and outlets falling to multi-quarter lows by June 2025, following a new central bank directive and the suspension of operations by a state-owned bank.

Bangladesh Bank data show deposits through agent banking reached Tk 1.239 trillion by the end of June, while remittance inflows totalled Tk 1.838 trillion. Disbursements to grassroots clients amounted to Tk 290.09 billion, fuelling rural economic activity.

However, agent numbers fell 4% year-on-year and 3% from the previous quarter, with 618 agents leaving in a year and 465 in the last quarter alone. Outlets dropped by 916 annually and 466 from March, ending June at 20,557.

The slowdown follows a March announcement by Bangladesh Bank Governor Dr Ahsan H. Mansur requiring that at least half of new agent-banking entrepreneurs be women, formalised in a May circular.

Industry executives say the rule, aimed at increasing female participation, has been difficult to implement in rural areas due to a shortage of women with the necessary skills.

Some male entrepreneurs have reportedly registered licences in wives’ names, but banks say the highly technology-driven nature of operations remains a barrier for many.

The sector also suffered from Agrani Bank PLC’s decision to suspend its agent banking operations on 21 June, contributing to a 1% fall in account numbers in the quarter.

Introduced in 2013 to serve remote and underserved populations, agent banking had been one of Bangladesh’s most successful financial inclusion tools, offering deposits, loans, remittances, bill payments, and government benefit disbursement. As of June, the network comprised 15,373 agents.