Agent Banking in Bangladesh - A New Era in Financial Institution by Enhancing Customers' Accessibility and Profitability of Banks

Abstract

The rebellion of information technology has influenced almost every facade of life, among them one is the banking sector. Technological progression has not only affected the way of living, but has had an effect on the way of people, to do their banking. Agent banking has become an essential practice of financial institution in bringing their services closer to the people at the base. There is no doubt that agent banking if included into the banking system of Bangladesh will help to improve banks' profitability. This study was intended to assess some facilitating factors and hindering factors that contribute to the inclusion of agency banking in Bangladesh. The facilitating factors were customer service, convenience and encourage starting SME business in rural areas. The hindering factors were the lack of activity of mobile financial services and prohibited to do some services by the agents. The aim of this study was to find out the implication of agent banking on enhancing customer's accessibility and profitability of Bangladeshi commercial banks.