ENTREPRENEURSHIP DEVELOPMENT

SECTION: E

SPRING 2021

Submitted To 
 
TAMANNA NAZNEEN RAHMAN 

Group Members-
1. Shadman, Md Salim (18-38022-2)
2. Borno, Alvi Hassan (17-35463-3)

Agent Banking
Introduction:
An agent bank is a bank that performs services in some capacity on behalf of an
entity. An agent bank, also known as agency bank. We are a registered agency named
“Sadhinota Enterprise” under Islami Bank Bangladesh Limited. We provide banking
services outside of regular bank branches by engaged agents under a valid agency
agreement. We also offer a wide variety of services for businesses who are looking to
expand. Our agency will serve account opening, cash receiving & payment, foreign
remittance payment, fund transfer, utility bill collection, cheque requisition, fund
transfer, balance inquiry, debit & credit card application, internet banking, Mcash
account opening and agriculture & microcredit.

Mission:
The aim is to provide financial services to the underserved and poor segments of the
population, especially those from the geographically dispersed locations such as rural
side of Gazipur. Simplifying all banking needs of the customers and reaching them
out to customers' doorsteps are the mission and objective of our agency.

Process to Start:
The bank authorities do not usually give the responsibility of this agent banking to
everyone. This requires his dealings with the bank, trust in him and whether he can
manage the agent banking, where the bank is located, whether it will be of any benefit
to the people, all in all, it becomes an agent bank with the approval of Bangladesh
Bank. It is possible to give an agent bank if we have a very good relationship with the
bank authorities. Otherwise, the bank gives the agent bank considering the space and
time as per its own wish.

Profit System:
Agent banking is really profitable and we don’t need much money to start, the money
just keeps circulating. For instance, let’s say a customer comes to transfer a sum of
50,000 taka. He/she gives us the cash at hand and then we do the transaction from our
account for which value is received immediately. Another customer comes to make a
withdrawal of the same 50,000 taka. When he/she slots the ATM in our P.O.S, our
account is credited immediately with the amount and we hand over the cash to the
customer.
The amount of agent banking dividends is a little less at first. Opening an agent
banking account, 20% of the profit earned through the transaction is owned by the
bank and 80% by the proprietor of the agent bank.or become the owner. In agent
banking, the commission is basically tk 5 in the range oftk 500 to tk 20,000 .
1 thousand per thousand is taken as commission above tk 20,000. Moreover, after
opening an account in Agent Bank, some commission is available. For example, an
agent banking opens 13 accounts with a monthly transaction of Tk 15 lakh and the
profit comes to Tk 1360. This method is entirely up to the bank.

Marketing Strategy:
We are opening agent banking in rural side as an entrepreneur. To market our services
to the consumer we can use billboard or poster to let them know our entity. Then it
will be easy for people to digest the whole process of us in a nutshell. Another way is
to boost our advertisement in platform like Facebook or Youtube to market ourselves
in the business area.

Benefits:
Some Benefits of Agency Banking:
 Personal Privileges : Customers in remote areas are still reluctant in utilizing
financial services. So we go completely out of our way to develop a relation with
the rural customers and assure them safety and educate them of the benefits too.
 Easy Platform for Technophobic : Due to the lack of resources, people in
remote areas are usually technophobic. A personalized support in banking
transactions from a known agent can provide comfort and faith in the mind of a
customer.
 Superior Customer Experience : Agency banking provides a superior customer
experience to the rural customers as it has brought banks to the doorsteps of
users. The clients can simply visit their agents which are located at their
proximity instead of waiting in long bank queues or traveling to the bank.
 Support for various transactions : It supports various types of transactions,
such as voucher-less prepaid top-up, top-up prepaid voucher sale, loan
repayments, account balance queries, merchant’s services, cash withdrawals, cash
deposits, transfers and bill payments of various types, such as fines, taxes,
government fees, utility bills and more.

Conclusion:
The most important aspect of agent banking is financial inclusion. The financial
inclusion is a tool for inclusive economic growth and poverty alleviation. The
adoption of agent banking has brought new era in financial inclusion of the banking
sector of Bangladesh. The adoption of agent banking may not work effectively
because accepting of agent banking is not free of challenges or cost. On the other
hand, successful implementation of the agent banking may open a new chapter in our
banking sector. Agent banking can ensure the access of the marginalized people to
several financial services, especially in remote areas. If the vibrant banking sector
puts relentless efforts by following the proper guidance of the central bank, agent
banking can prove an effective tool for enhancing financial inclusion and
materializing the dream of a poverty-free Bangladesh.