Agent banking

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Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank

History of Agent Banking:

 

Agent Banking has been adopted and implemented with varying degrees of success by a number of developing countries. Brazil is often recognized as a global pioneer in this area since it was an early adopter of the model and over the years has developed a mature network of Agent banks covering more than 99% of the country’s municipalities. Other countries have followed suit, including Mexico, Peru, Colombia, Ecuador, Venezuela, Argentina, Bolivia, Pakistan, Philippines, Kenya, South Africa, Uganda and India.

 

Eligibility of Agent:

  • Any Business entity having trade licenses.
  • MFI’s regulated by Microcredit Regulatory Authority (MRA) of Bangladesh;
  • NGOs registered with Social Welfare Directorate;
  • Societies registered under the Societies Registration Act, 1860;
  • Cooperative Societies formed and controlled/supervised under Cooperative Society Act, 2001;
  • Government offices having branch/unit offices;
  • Courier and Mailing Service Companies registered under Ministry of Posts & Telecommunications;
  • Companies registered under The Companies Act, 1994;
  • Agents of Mobile network operators;
  • Agents of Insurance companies;
  • Local government institutions;

Criteria to become a BRAC Bank Agent

  • Individual having trade license/Firm to be Bangladeshi National/Origin.
  • Proposed Agent would have any business experience (minimum 1 year).
  • Proposed Agent would be educated having a minimum qualification S.S.C or equivalent to understand the rules and regulation of financial services.
  • Applicant’s age limit would be 18-65 years.
  • Agent need to propose one/multiple prospective locations for Agent Banking Outlet(s).
  • Applicant would be local resident of the proposed area (preferred).
  • The person/firm would be financially sound and solvent.
  • Applicant would have own/rented business premise.
  • Proposed Agent should not be a loan defaulter/Bankrupt with any bank/financial institution and not penalized by any civil or criminal court.
  • Not engaged with any subversive activities.
  • Not having other bank’s agent banking licenses.
  • Proposed Agent should have knowledge and ability to handle Technology based financial services.
  • Person should have ability to meet commitment under adverse situation.
  • Capacity to manage cash handling in Agent Banking Outlet.
  • No Bank related person should be appointed as Agent, as defined in section 26GA of the Bank-Company Act, 1991.
  • BRAC Bank officials will not be eligible to become an Agent within 1 (one) year of his/her retirement or resignation.

Agent Acquisition Process:

 

1st Step:

  • Agent will propose convenient bazar(s)/location(s) for agent banking. (Having any business entity in the proposed location(s) would be preferred.
  • Agent may propose for SME Unit Office(s) or standalone location(s).

2nd Step:

  • Agent Banking Team will collect agent proposes location feasibility/survey report to understand agent banking business prospect.
  • Communicate with agent for further discussion on investment and required documents.

3rd Step:

  • Agent needs to arrange premises for AB Outlet as per bank requirements.
    – Owned/rented.
    – Ground floor or 1st floor.
    – Brick building.
    – Premises size 150 sqft. – 800 Sqft. (Category A: 800 Sqft. B: 300 Sqft. & C: 150 Sqft.).
    – Toilet arrangement is must.
  • Agent needs to recruit 2 resources (1 male & 1 female preferred). Bank will provide necessary training to the agent resources to run the agent banking outlet.

4th Step:

  • Issue Agent Appointment letter.
  • Arrange foundation training for Agent and Agent staffs (Agent Field Officer).

5th Step:

  • Prepare Outlet (Branding, Furniture and IT Equipment)
  • Operation Go Live

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