Banking services being brought closer to rural communities in Bangladesh by City Bank
City Bank Expands Agent Banking Operations in Bangladesh, Boosting Financial Inclusion
City Bank, a leading financial institution in Bangladesh, has made significant strides in expanding access to financial services in rural and remote areas of the country. With the approval of the Bangladesh Bank, City Bank is now onboarding a Merchant-Led Digital Model, further enhancing its Agent Banking operations.
The bank's Agent Banking network, which was launched in 2017, has grown to over 430 outlets nationwide as of June 2025. This widespread network facilitates not only deposits and withdrawals but also loan disbursement and other banking services, effectively bringing banking closer to populations previously excluded due to geographic or infrastructural barriers.
City Bank's Agent Banking operations have played a crucial role in financial inclusion. By March 2025, agent banking accounts in Bangladesh reached 24.67 million, with 85.52% of these accounts located in rural areas. Of those rural accounts, about 83.63% are linked to agent banking, highlighting deep penetration into underserved populations.
The bank's focus on serving remote, rural, and semi-urban areas where traditional banking infrastructure is limited has been instrumental in this growth. City Bank offers a range of services tailored to its agent banking clients, including low-minimum savings accounts, small-ticket Deposit Pension Schemes, SME loans for women entrepreneurs, small traders, and farmers, and the Remittance Beneficiary Loan.
To ensure security, City Bank has a token management system for two-factor authentication in cash transactions, a measure that has been praised by the Bangladesh Bank as an effective fraud deterrent. The bank also uses biometric e-KYC for quick account opening, verified against the Election Commission database.
However, challenges remain. The representation of female agents is low, with only 9.15% as of March 2025, far below the Bangladesh Bank's 50% target. This can affect women's access to financial services through agent networks. City Bank, like other banks in Bangladesh, likely faces similar challenges in increasing female participation in its agent banking operations.
In the face of these challenges, City Bank is planning for the future. The bank aims to expand Agent Banking to every upazila, improve digital onboarding, and launch instant digital loan solutions in the short term. The bank also seeks greater regulator and government support for awareness campaigns through all media to address financial and digital literacy issues and low awareness, contributing to fraud risks.
City Bank's Agent Banking strategy includes offering all banking services through agents, with a strong emphasis on providing loans to small traders, women entrepreneurs, farmers, and middle-income individuals. The bank's Agent Banking outlets offer services such as biometric e-KYC account opening, cash deposits and withdrawals, fund transfers, utility bill payments, remittance disbursement, CMSME loan distribution, and a Remittance Beneficiary Loan product.
Agents in City Bank's Agent Banking network receive a share of loan collection commissions, giving them better returns than competitors and encouraging active support. The bank's Agent Banking strategy also includes financial literacy programs, community meetings called "Uthan Boithak," and customer engagement initiatives to build trust in rural and semi-urban areas.
In the long term, City Bank aims to introduce a merchant-led digital banking model in every village or pocket bazar, supporting a cashless Bangladesh. The bank's Agent Banking operations, with their focus on quality and compliance over sheer numbers, are poised to continue driving financial inclusion in Bangladesh.
- To further boost financial inclusion in Bangladesh and expand its Agent Banking operations, City Bank is implementing a Merchant-Led Digital Model, which combines business, finance, and technology.
- City Bank, with its Agent Banking strategy that emphasizes financial literacy and the provision of various banking services such as loans for women entrepreneurs, farmers, and traders, aims to introduce a merchant-led digital banking model in every village or pocket bazar, leveraging technology for a cashless Bangladesh.
