With one of the largest agent banking networks in the country, Islami Bank Bangladesh PLC has turned agent banking into a core delivery channel for Shariah-compliant finance. Managing Director Md Omar Faruk Khan says the model now serves 5.79 million customers, mobilises about Tk220 billion in deposits and commands roughly 45 per cent of the industry’s agent-banking deposit market. While savings have grown faster than investment, the bank is expanding CMSME financing through agents, backed by biometric security, real-time monitoring and tighter supervision, to deepen rural economic participation. Here are excerpts from his recent interview with TIMES.
TIMES: What makes agent banking attractive for banks and customers?
Omar Faruk Khan:
Islami Bank has been engaged in agent banking since the early policy phase, opening its first full outlet in 2017. Today, about 5.79 million of its 30.80 million customers are served through agents, mobilising roughly Tk22,000 crore in deposits, including more than Tk5,200 crore added last year. The bank now holds around 45 percent of the industry’s agent-banking deposit market, a scale it attributes to service quality, integrity and customer trust.
TIMES: Is the expansion of agent banking driven by inclusion goals, cost efficiency, or both?
Khan: Both inclusion and cost efficiency drive agent banking. International experience shows that in remote areas, over 70 percent of household payments are handled through agents. For Islami Bank, the primary goal has been to bring underprivileged people into formal banking while the model also lowers costs by allowing agents to operate outlets under branch supervision where opening a full branch is not viable.
TIMES: How large is your agent network and what volumes does it handle?
Khan: We now operate 2,788 agent outlets across 477 upazilas. In 2025, agent banking recorded around six crore transactions. Deposits stood at about Tk22,000 crore, while Tk1,731 crore in investment was disbursed to entrepreneurs through agent channels.
TIMES: Does the gap between deposits and investment create a one-way flow of funds?
Khan: Agent banking has strengthened inclusion by mobilising savings and disbursing remittances. Investment, however, must comply with Shariah principles and established rules, and financing is extended to eligible entrepreneurs. Islami Bank is expanding CMSME investment through agent outlets with its own manpower, aiming for balanced growth without compromising prudence.
TIMES: What are the main risks in agent banking and how are they managed?
Khan: Transactions are driven by technology. Every transaction uses biometric verification, OTP confirmation and instant SMS alerts. Larger transactions require dual authorisation. We display customer-awareness posters at outlets and regularly train agents. Branch officials monitor outlets, supported by audits and AML-CFT training. We also have a dedicated agent banking division for off-site supervision and recently introduced a missed-call balance confirmation system to protect customers.
TIMES: If fraud occurs, who bears responsibility?
Khan: Within authorised banking processes, issues are resolved under Bangladesh Bank’s prudential guidelines, with transactions protected by two-factor authentication and branch supervision. If customers transact outside the banking system through personal arrangements, liability rests there, but within the system customer interests are protected.
TIMES: Has regulation kept pace with rapid growth?
Khan: Regulations have evolved, but implementation at the grassroots remains challenging. Early risks around agent integrity and technology were underestimated. Supervision is becoming stricter, with more real-time monitoring and customer-awareness efforts. Bangladesh Bank’s Financial Inclusion Division regularly engages banks to update rules, and we remain fully committed to protecting customers.
TIMES: How will technology shape the next phase?
Khan: Agent banking is already biometric and digital. Going forward, open banking, interoperable QR platforms and API integration will allow customers to transact using any bank or mobile financial service app, while AI and secure digital tools will further reduce the need for branch visits.
TIMES: How do you see agent banking evolving over the next decade?
Khan: Over the next decade, agent banking will become a key driver of the rural economy, evolving into digital service centres for SME and agricultural finance, remittances and cashless transactions, helping bridge the urban-rural gap through inclusive, technology-driven banking.
