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Agent Banking

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Agent Banking

  1. 1. Group Name: Catalyst 1. Md. Arif Hasan Khan 2. S. M. Shalahuddin Ahmed 3. Md. Aminul Islam 4. Md. Mahfuz Bin Bakhtiar 5. Md. Rasheduzzaman 6. Md. Meftaul Zinnah 7. Md. Hasan Majumdar 8. Md. Mahfizur Rahman presentation is designed and prepared by Arif Hasan Khan
  2. 2. At a glance Financial Exclusion Financial Inclusion Agent Banking presentation is designed and prepared by Arif Hasan Khan
  3. 3. Financial Exclusion No Savings No Insurance No access to money advice No affordable credit No bank account No assets presentation is designed and prepared by Arif Hasan Khan
  4. 4. • Drivers of financial exclusion Most Frequent: Low income, Nil or Low savings, Lack of assets, Unemployment, Use of inappropriate products Less Frequent: Psychological/disability issues, Feeling of being excluded, Indigenous /Ethnic issues, Geographical remoteness, Lack of PC/Internet Access. • Personal and Social Factors:  Cultural norms, Gender, Age, Legal identity. presentation is designed and prepared by Arif Hasan Khan
  5. 5. FinancialInclusion Definition “The process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost” 1 2 3 presentation is designed and prepared by Arif Hasan Khan
  6. 6. Enthusiasm Will Skills Implementations Networking Modernization •Threats •Opportunities •Commitment •Basics •Programs •Technology •New Work Cultures •Cooperation •Purchasing •Production •Marketing •Selling •Cooperation •Contents •Benefits Presentation is designed and prepared by Arif Hasan Khan
  7. 7. NEXT Presenter Presentation is designed and prepared by Arif Hasan Khan
  8. 8. Steps Taken Cooperative Movement Nationalization of Banks Lead Bank Scheme Service Area Approach What was Lacking Absence of Modern Technology Inadequate reach and coverage Delivery Mechanism Well defined business model presentation is designed and prepared by Arif Hasan Khan
  9. 9. Focus on Inclusive Growth Banking Technology has arrived Realization that poor is bankable presentation is designed and prepared by Arif Hasan Khan
  10. 10. -Account Opening -Transactions Data Captured Through Laptop & POS/POT Service provider Intermediate Server Security Equipment IN CB Server Activity is performed by BC -Laptop for A/C opening -POS/POT for transaction Service provider’s (Intermediate server File converted into format of CB) Villages Data is uploaded into CB server and Interest Calculation done centrally and details sent back to POS and interested to the smart card of customer. presentation is designed and prepared by Arif Hasan Khan
  11. 11. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
  12. 12. • Coverage • Access to Diversified Financial Products and Services • Delivery Model – Day to Day Transactions • Cost-Effective Technology • Customer education/financial advice • Change in banker’s mindset presentation is designed and prepared by Arif Hasan Khan
  13. 13. • Scaling up of activities • Appropriate business model yet to evolve • BC model too restrictive • Limitation of cash delivery points • Lack of interest / Involvement of Big Technology Players presentation is designed and prepared by Arif Hasan Khan
  14. 14. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
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  16. 16. • Appropriate Technology • Appropriate and Efficient Delivery Model • Mainstream bank’s determination and involvement • Strong collaboration among banks, technical service provider. presentation is designed and prepared by Arif Hasan Khan
  17. 17. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
  18. 18. • The agent banking model is designed to assist banks to lower their cost of offering banking services that has been a major impediment to inclusion while at the same time improving their earnings as more peoples are offered an opportunity to access financial services. Agent Banking presentation is designed and prepared by Arif Hasan Khan
  19. 19. Delivery channels of Agent Banking POS-enabled bank agent : • This is an agent managed by a bank that uses a payment card to identify customers. Mobile phone- enabled agent: • This is an agent managed by a bank that uses a cell phone to identify customers. Mobile wallet: • This is an agent that is often managed by a telecom. Bank-provided account linked to a mobile wallet: • This is a bank account that is linked to a mobile wallet. Our analysis focuses on four types of agent banking delivery channels: presentation is designed and prepared by Arif Hasan Khan
  20. 20. pharmacies supermarkets convenience stores lottery outlets post offices Banking agents can be presentation is designed and prepared by Arif Hasan Khan
  21. 21. Agent Selection Criteria The following issues should be taken into consideration for selecting agents: •Competence to implement and support the proposed activities •Financial soundness and cash handling capability; •Ability to meet commitments under adverse conditions •Business reputation •Ability to offer technology based financial services •Security and internal control, audit coverage, reporting and monitoring capacity •Loan defaulter or the convicted person can not apply for agency ship presentation is designed and prepared by Arif Hasan Khan
  22. 22. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
  23. 23. Transaction process • Client withdraws money (“cash-out” transaction): agent account is credited in same amount. • Client deposits money (“cash-in” transaction): agent account is debited in same amount. presentation is designed and prepared by Arif Hasan Khan
  24. 24. Financial services offered by banking agents in various countries: • Loan Payments • Withdrawals • Execution of collection services • Receiving and forwarding loan requests and financing requests • Deposits to a customer’s or third party’s account • Opening and closing of simplified bank accounts presentation is designed and prepared by Arif Hasan Khan
  25. 25. • Payments on goods or services • Purchase of pre-paid debit cards • Balance inquiries • Bank statements • Transfers of funds between parties • Receiving and forwarding credit card applications Financial services offered by banking agents in various countries: presentation is designed and prepared by Arif Hasan Khan
  26. 26. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
  27. 27. Models used to manage banking agent networks Financial Institution Management Company Agent Agent Agent Agent Financial Institution Agent Agent Agent Agent Direct Model Indirect Model presentation is designed and prepared by Arif Hasan Khan
  28. 28. Challenges & Threats of agent banking in Bangladesh: • Insufficient volume of transactions • Lack of customer awareness • Infrastructure development and coverage • ICT platforms and sharing arrangements • Pricing and accessibility • Liquidity management • Threat of robbery is high presentation is designed and prepared by Arif Hasan Khan
  29. 29. • the economy is largely cash-based • The bank charges high fees for this service, adding substantially to the costs of agents • the volume of transactions conducted through agents remains fairly low • The regulation does not allow banks to acquire new clients through agents • very difficult to ensure agent banking systems work in the very remote areas • Agents who are skilled enough to implement the payment system may also be savvy enough to manipulate it. Challenges & Threats of agent banking in Bangladesh: presentation is designed and prepared by Arif Hasan Khan
  30. 30. NEXT Presenter presentation is designed and prepared by Arif Hasan Khan
  31. 31. Advantages of Agent Banking • To achieve growth and equity • Get rid of poverty • To attract global market players to our country • To increase the employment and business opportunity • To baring more transparency in the system presentation is designed and prepared by Arif Hasan Khan
  32. 32. • Financial inclusion by agent banking is a win- win situation for the financially excluded, corporates, the govt. and the Banks. • Bankers can support by financing the agri products including their preservation and sales. presentation is designed and prepared by Arif Hasan Khan
  33. 33. • Easy to Banking services and products including consumer loans and micro-finance services • Easy access and spread by agent banking of credit cards, debit cards etc. Bill payments of electricity, utilities etc. presentation is designed and prepared by Arif Hasan Khan
  34. 34. Last Presenter presentation is designed and prepared by Arif Hasan Khan
  35. 35. Decision • Bangladesh stands second among South Asian nations in ensuring access to financial services for its citizens, a recent study found. • Economic growth of a country plays a pivotal role for greater financial inclusion, and it is possible by agent banking in our country. presentation is designed and prepared by Arif Hasan Khan
  36. 36. • Around 66 percent of the households in Bangladesh now have access to services including credit, savings and insurance from banks or microfinance institutions (MFIs) and cooperatives Decision presentation is designed and prepared by Arif Hasan Khan
  37. 37. • So we can say that agent banking can be a new era of Bangladesh for financial inclusive. • It is a new mechanism for money create and transaction. presentation is designed and prepared by Arif Hasan Khan
  38. 38. That’s all for the time being Everybody presentation is designed and prepared by Arif Hasan Khan
  39. 39. presentation is designed and prepared by Arif Hasan Khan

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