“Research Proposal of Agent

Banking and Its Prospects in

Bangladesh”

Course Code : MBA-511

Course Title : Business Research

Submitted to : Zakir Hossain Bhuiyan, PhD.

Masters of Business Administration

Submitted by : Shajidur Rahman Chowdury

ID No : 2022-2-95-040

Date of Submission : 02.12.2022

 1. Introduction

Bangladesh is a developing country in South Asia's northeastern region. It is predicted that it has
a population of 165.748 million people as of February 2018. (World meters, 2018). Bangladesh,
with a GDP of USD228.4 billion (The World Factbook, 2017), is the 44th biggest economy in the
world. Over the last two decades, Bangladesh's average yearly real GDP has grown by a
remarkable 6%. With rising exports (USD 34.835 billion from July 2016 to June 2017),
remittances from workers (USD 10.591 billion from July 2016 to June 2017), and positive current
account balances, the country is transitioning from an agrarian economy (15.1 percent of GDP) to
a manufacturing (28.6 percent of GDP) and service-based economy (56.3 percent of GDP). The
banking business, as part of Bangladesh's booming service sector, plays a critical role in the
country's economy, since it contributes to all other sectors through credit disbursement, recovery,
and growth patterns.
A substantial portion of Bangladesh's population, however, lacks physical access to financial
institutions. Traditional banking services are available through branches, automated teller
machines (ATMs), and the Internet, although the majority of Bangladeshis are unable to use them.
Agent banking becomes a more viable alternative as a consequence. The Bangladesh Bank
(Central Bank of Bangladesh) has developed rules for agent banking in order to provide more
financial assistance to the general public.
Agent banking refers to financial services that are not provided by traditional banks and are instead
provided by non-bank retail agents using real-time transaction processing equipment such as card
readers, point-of-sale (POS) terminals, or mobile phones. A banking agent is a retail location that
has been hired by a regulated deposit-taking financial institution or a mobile money operator to
offer a variety of financial services to clients Banks that want to provide agent banking must first
get permission from the Bangladesh Bank. Agent banking is permitted for specific operations such
as utility bill payment, remittance, and savings deposits, among others. Transition limitations,
agent selection, transaction security, and other restrictions apply. Agent banking comes with a lot
of advantages, but it also comes with a lot of hazards, especially the high chance of regulatory
violations. In traditional banking, rules are carefully adhered to and regulated. Agent banking, on
the other hand, is an unusual system run by agents distributed around the country (without armed
security guards, closed circuit television surveillance, or other established safety procedures). Poor
system maintenance, customer relationship management, cash and customer information handling,
early detection of system-related difficulties, and regulatory elements of financial transactions can
all pose hazards.
Agent banking takes place in rural regions of the country through retail shops. From the bank's
standpoint, there are no longer any costs associated with opening a bank branch. Agent banking
provides the general people with a secure means to access services and conduct financial
transactions. It's a method for agents to supplement their revenue by providing financial services.
 2. Objective of The Study:

Specific Objectives are:

• To have a better understanding of agent banking.
• To get a better understanding of the current state of agent banking in Bangladesh.
• To learn about agent banking's goods and services.
• To get a better understanding of how agent banking works.
• To determine the problem with agent banking in Bangladesh, as well as its future potential.
• To provide suggestions regarding the operations of the agent banking.

3. Methodology of the Study

The procedure required example determination, wellsprings of information, and the strategies
utilized for information investigation. To finish my report, I utilized two kinds of information
sources. Those were essential information and optional information. An essential information
source is an underlying information source, that is, one in which the information is acquired
firsthand.
The sources may incorporate an overview survey inside agent banks by the representatives, meet
of workers, observational sources, and so forth Auxiliary information has effectively been
assembled for some other explanation. However, for the report, such information may be valuable.

4. Cost and Time:

Fulfil the proposal for agent banking and its prospect in Bangladesh budget will be 1 lac only and
time jan’21 to dec’22. Here the breakdown of the budget money and timeframe –
NAME TIME COST
Review Literature and Final Jan’2021 10,000 BDT
Proposal
Preparation of questionnaire Feb’21 to Apr’21 15,000 BDT
Data collection May’21 to Jul’22 25,000 BDT
Data Entry and analysis Aug’21 15,000 BDT
Report writing Sept’21 to Oct’21 20,000 BDT
Second Seminar (Presentation Nov’21 5,000 BDT
of thesis)
Submission of final thesis Dec’21 10,000 BDT

5. Reference:

• https://www.lightcastlebd.com/insights/2020/09/agent-banking-spearheadingfinancial-
inclusion-in-bangladesh
• https://gradesfixer.com/free-essay-examples/literature-review-on-agent-bankingsystem/
• http://www.centralbank.go.ke
• http://www.kcbbankgroup.com
• https://www.agranibank.org/index.php/home/agent_banking/History-of-AgentBanking
• Md. Razib Siddiquie, “Agent banking: the revolution in financial service sector of
Bangladesh” IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 23215933, p-
ISSN: 2321-5925.Volume 5, Issue 1. (Jul-Aug. 2014), PP 28-32
• Masila Christopher kitali, “The impact of agent banking on customer satisfaction” (June,
2015)
• Nkiru Patricia-Nezianya & Daniel Izuchukwu,Impact of Agent Banking on Performance
of Deposit Money Banks in Nigeria (2014)
• Mirza Sami Adib, (2016) “Agent Banking and Its Prospects in Bangladesh” • Clara
Veniard, “How Agent Banking Changes the Economics of Small Accounts” (November
2010) • Fred Gichana Atandi, (2015) “Challenges of agent banking experiences”
• Goliath, S W (2004) The Identification of Competitive Strategies That PPC Cement Could
Use Within the Eastern Cape Border Segment to Maintain Its Market Share.
• Kothari C R (2004) Research Methodology – Methods & Techniques, USA, New Age
International (P) Ltd.