Abstract
Agent banking has emerged as one of the most promising instruments for financial inclusion in Bangladesh, extending formal banking services to the unbanked population — particularly in rural and semi-urban areas where branch infrastructure is economically unviable. This paper analyses the operational models, growth trajectories, and sustainability metrics of the top six agent banking performers in Bangladesh between 2017 and 2022, with a focus on understanding what differentiates high-performing institutions from the rest.
Through econometric analysis of Bangladesh Bank data and annual reports, I find that BRAC Bank’s lending-first model — providing credit through agent channels rather than restricting agents to deposit and payment functions — is the primary differentiator for long-term, sustainable growth and genuine financial inclusion impact.