Agent banking a long-term strategic investment

The primary objective of launching EBL agent banking was to deliver safe and modern banking services to the doorstep of unbanked rural and marginal communities At the same time, enhancing financial inclusion and ensuring sustainable growth by expanding banking operations at a comparatively lower cost were also key objectives, Mr. Ali Reza Iftekhar, Managing Director, Eastern Bank PLC, said in an interview with the FE, while listing the factors that prompted Eastern Bank PLC to venture into agent banking.

He said the bank considers agent banking as a long-term strategic investment. 'It is not merely an alternative delivery channel; rather, it serves as a strong foundation for low-cost deposit mobilization, customer acquisition, and future digital banking expansion", he said.

On the progress that the Eastern Bank PLC has so far achieved in agent banking, Mr. Iftekhar said, currently, EBL's agent banking operations are spread across the country. Both the number of customers and the transaction volumes have been increasing consistently. Through the expansion of agent outlets, particularly in rural, marginal, and underserved areas, the outreach of banking services has been significantly enhanced.

On the effectiveness of agent banking, the Eastern Bank PLC managing director said agent banking has made account opening, savings mobilization, and remittance receipt easier for rural populations, thereby playing a highly effective role in financial inclusion. In addition, by providing loans on simplified terms to marginal groups, it helps keep them away from exploitative informal lending sources.

He said the bank has achieved significant progress in deposit mobilization through agent banking. A large number of new customers are being brought under the formal banking system through small and regular savings, which supports the development of a sustainable and diversified deposit base.

He said through EBL agent banking, customers can easily open accounts, access "Shakti Account" facilities for farmers, small savings products, and "Mukti Loan" facilities for women entrepreneurs based on limited transaction history. In some cases, training and financial literacy programs are also provided. Additionally, monthly savings schemes starting from BDT 100 and long-term savings schemes from BDT 10,000 are available, making banking services more inclusive.

On the issues of technology use and prevention of fraudulence in agent banking, Mr. Iftekhar said the bank ensures technological security and fraud prevention through biometric verification, real-time transaction monitoring, strict compliance with AML/CFT policies, and robust IT security systems. Regular audits and field-level supervision are conducted, and bank representatives are deployed to ensure continuous monitoring of each agent outlet.

He said to ensure agent efficiency and service quality, the bank conducts regular training programs, field inspections, transaction analysis, customer complaint reviews, and audits. Bank representatives are also regularly present at respective outlets to monitor performance and maintain service standards.

When asked about the challenges his banks facing in operating agent banking, the Eastern Bank PLC MD said lack of financial awareness among customers, capacity building of agents, and management of technological risks are considered the major challenges in operating its agent banking.

He was of the view that improvements in digital infrastructure, increased product diversification, and supportive incentive-based policies can further accelerate the growth of the agent banking sector. In particular, policy support related to loans for women entrepreneurs and remittance services would have a positive impact.

Speaking about his bank's long-term plan on agent banking, he said said, over the next five years, the bank plans to further expand its agent network, introduce new digital and value-added services, and bring more rural populations under the formal banking system. At the same time, special emphasis will be placed on improving service quality.

Finally, Mr. Iftekhar in his message to customers said the bank's focus will be on regular savings and investments through safe and modern banking services. To young entrepreneurs, he said, "we would like to say that EBL Agent Banking is not just a business opportunity; it is an effective platform for financial inclusion and social development.