In the January-March quarter of 2024, inward remittances collected and disbursed through agent banking in Bangladesh saw a 4.75% increase compared to the previous quarter, according to Bangladesh Bank (BB) data. 

The total amount of inward remittances reached Tk 1.49 trillion by the end of March 2024. Over Tk 68.03 billion in remittances were disbursed through agent banking channels during this period.

This growth is attributed to several factors, including the government’s initiative to provide a 2.5% cash incentive on inward remittances and enhanced financial literacy campaigns. 

The Bangladesh Bank launched these campaigns in January 2023 under the theme ‘Enhance Social Awareness to Send Remittance through Legal Channel,’ and they have contributed to increasing the flow of remittances through formal banking channels.

Agent banking services have continued to expand in Bangladesh, showing growth across various metrics. As of March 31, 2024, 31 banks offered agent banking services through 21,613 outlets operated by 15,835 agents. This represents a 0.50% increase in the number of agents and a 0.06% increase in the number of outlets from the previous quarter.

The number of accounts opened through agent banking reached 22.25 million, with 49.71% (11.06 million) belonging to female customers. Additionally, 86.05% (19.14 million) were held by customers in rural areas.

By the end of March 2024, the total deposits in agent banking accounts amounted to Tk 368.70 billion. Meanwhile, the loan disbursements through agent banking accounts of 22 banks stood at Tk 164.82 billion. Over the last quarter, the number of accounts opened through agent banking increased by 3.88%.

Interestingly, the share of female-owned accounts increased by 3.59% this quarter, surpassing the share of male-owned accounts. This indicates a growing financial inclusion among women through agent banking channels.

Deposits in agent banking accounts rose 1.41% from the previous quarter, while the volume of lending through these accounts increased more substantially by 6.98%. 

However, the loan-to-deposit ratio remained relatively low at 44.70% by the end of the reporting quarter, indicating that while deposits are growing steadily, lending through agent banking is still limited in comparison.

The steady increase in inward remittances and the expansion of agent banking services highlight the effectiveness of government policies and financial literacy campaigns in promoting formal banking channels. 

The growth in female-owned accounts and the significant presence of rural customers suggest that agent banking is crucial in enhancing financial inclusion across Bangladesh’s different demographics.