Agrani Doer Banking: Agent Banking Business in Bangladesh

Abstract

Agent banking involves the provision of banking services through non-conventional means such as retail outlets with the use of technology. In developing countries, such as Bangladesh, agent banking acts as a medium between the rural unbanked majorities and banking services that they would otherwise not have access to. The case analyzes how innovation in the banking sector can aid poor people to gain access to financial institutions through the Agrani Doer banking business model. It elaborates on the rules and regulations of agent banking and how the first state bank of Bangladesh, Agrani Bank, establishes coverage to places not deemed possible before. The concept of agent banking, in an illustrative case, is linked to Ansoff's Growth Matrix as Agrani Bank uses technology and innovation in its business strategies to achieve its desired growth goals.

Comprehending the intention to use branchless banking by rural people during the corona pandemic: evidence from Bangladesh

“…These types of banking services are extended to the remote rural areas where the banks find it difficult to establish any formal bank branch. The agents who provide banking services are actually nonbank agents such as grocery stores, retail outlets, post offices or pharmacies (Ahmed and Ahmed 2018). The growth of branchless banking has been augmented in Bangladesh to a greater extent during the outbreak of Corona Pandemic (see Fig.…”

“…Branchless banking (or agent banking) is one of the cutting-edge financial innovations in this new millennium (Chowdhury 2018;Khan and Woodard 2016;Siddiquie 2014). This type of banking has been introduced mostly because there are a large number of rural people who are outside formal banking services (Ahmed and Ahmed 2018;Hinson 2011). The Central Bank in Bangladesh (Bangladesh Bank) has issued formal broad guidelines on branchless banking on December 9, 2013 (Bangladesh Bank 2013).…”

Financial Inclusions : A study on Agent Banking

“…Through innovation of agent banking process for connecting unbanked people can be a great initiative for financial inclusion. Agrani Bank Limited in Bangladesh, tried to connect poor people, including in financial services by using Ansoff's Growth Matrix (Ahmed and Ahmed, 2018) also known as product market matrix which focus on evaluating chances for corporations to upsurge their sales through displaying alternate amalgamations for new markets by market penetration strategy, market development strategy, product development strategy and diversification strategy (Abdin. J, 2016).…”

Innovation in Financial Services: The Case of Bangladesh

“…According to Ahmed and Ahmed (2018) agent banking refers delivering the limited scale of financial services to the underprivileged population through non-bank retail agents under an agency agreement by relying on some devices such as POS terminal, card readers or mobile phones. Banks need prior and valid approval from the central bank for offering agent banking.…”