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
