Internship report on agent banking and its prospects in bangladesh a study on bank asia ltd.

Internship Report
On
Agent Banking and Its Prospects in Bangladesh: A
Study on Bank Asia Ltd.
Supervised By
Md. Abdullah
Assistant Professor
Department of Marketing
Faculty of Business Studies
Comilla University
Prepared By
Md. Riad Shahriar Riaz
ID: 21507018
Session: 2014-15
Master of Business Administration
Comilla University
15th
February, 2017

Letter of Transmittal
15th February, 2017
Md. Abdullah
Assistant Professor
Comilla University
Subject: Submission of the report of MBA Internship Program.
Dear Sir,
I have completed the internship program as a course requirement of M.B.A. program and now
I am greatly impressed for the submission of my internship report on “Agent Banking and Its
Prospects in Bangladesh: A Study on Bank Asia Ltd.” I have tried my level best to bring out
the original scenario regarding “Agent Banking and Its Prospects in Bangladesh: A Study on
Bank Asia Ltd.” with full of effectiveness & efficiency. To prepare this report I have collected
what I believe to be the most relevant information to make my report as analytical and reliable
as possible. I have concentrated my best effort to achieve the objectives of the report and hope
that my endeavor will serve the purpose. The practical knowledge and experience gathered
during my report preparation will immeasurably help in my future professional life.
I am very glad to you because you assigned me to do the report. I hope that my report will
meet your standard and oblige thereby.
Yours faithfully,
………………………….
ID: 21507018
Session: 2014-15
Comilla University

Supervisor Certification
This is to certify that the internship report on “Agent Banking and Its Prospects in
Bangladesh: A Study on Bank Asia Ltd.” submitted by Md. Riad Shahriar Riaz, ID:
21507018, Session: 2014-15 as an integral part of the requirement of Master of Business
Administration (MBA) degree from the Department of Marketing, Comilla University.
The internship report may be accepted as a constructive work and significant part of the whole
program.
……………………..
Md. Abdullah
Assistant Professor
Comilla University

Student Declaration
I am Md. Riad Shahriar Riaz, hereby declare that this internship report titled “Agent Banking
and Its Prospects in Bangladesh: A Study on Bank Asia Ltd.” is uniquely prepared by me
after the completion of three months working in Bank Asia Ltd.
I also confirm that, this study has not previously been published in any journal or not submitted
for the partial fulfillment of any degree, diploma or fellowship in any other Organizations or
Universities.
………………………….
ID: 21507018
Session: 2014-15
Comilla University

Acknowledgement
I would like to express my profound gratitude to all those who have been instrumental in the
preparation of this internship report. I wish to place on records, my deep gratitude for the
support, direction, and supervision in every aspect from, Bank Asia officials, my faculty, and
friends.
First of all, I feel proud to express my deepest sense of gratitude to my honorable supervisor
Md. Abdullah, Assistant Professor, Department of Marketing, Comilla University with
superb helping tendency especially his scholastic guidance, constructive criticism and untiring
help for successful completion of this internship program and writing this report.
I would also like to show my utmost gratitude to all the officials of Bank Asia limited;
especially the teams that I have worked with and all other teams in the Agent Banking
function. I would like to mention the name of Md. Adil Raihan (Senior Executive Vice
President, Agent Banking Division, Bank Asia Ltd.) for facilitating me with all the internal
information that helped me to prepare the company overview and industry analysis. I cannot
but mention Gobinda Kumar Biswas (First Assistant Vice President & Branch Manager,
Brahmanbaria Branch) with utter thankfulness for his grateful support by providing
information of his region.

Executive Summary
Agent Banking means providing limited scale banking and financial services to the unbanked
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. It
is one of the most popular financial services in the world where there are difficulties in
accessing geographical locations easily. And that is why agent banking is very successful in
Latin America & Africa. Other developed like United Kingdom, Australia etc. countries are
also gradually deploying agent banking because it reduces the cost of operating of the bank.
Most of the services of a bank can be provided through agents, thus people of remotest area
of a country can be brought under proper financial structure by the virtue of agent banking.
According to the agent banking guideline the software of any individual agent will be
connected to the core software of the bank, so transactions that will take place in agent
premises will be shown in the banking system real-time. To set up a branch in a specific area
is very costly, so the banks are enhancing agent banking services for the unbanked people in
which they have a little cost. There are almost 160 million people in Bangladesh but most of
the people are unbanked. If these people can be included in the banking sector, then not only
the economy of the country but also the unbanked people will be benefitted from it.
Bank Asia is the 3rd
Generation bank of Bangladesh which is the pioneer of Agent Banking in
Bangladesh. It has started Agent Banking in Bangladesh for first time in 19th
January, 2014 in
Munshigonj as pilot phase. It is now operating its agent banking business operation in almost
50 districts through 1500 agent’s outlet including individual outlet, Union Digital Centre
(UDC) etc. Its offering almost all banking services as deposit, withdraw, fund transfer,
remittance payments, loan distribution, school banking etc. in a limited scale. Along with
Bank Asia some other banks also start agent banking, such as Dutch Bangla Bank, Modhumoti
Bank, NRB Bank, Mutual Trust Bank, Al-Arafah Islami Bank, Standard Bank etc.
Agent banking is becoming one of the fastest growing banking business in Bangladesh but
there has some limitation and problems, i.e. the customer can transect maximum 2 lac taka in
cash, the agents are not well trained, financial problems of the agents, shortage of all necessary
equipment, crisis of reliability on the agents as well as bank, uneducated customers, the agents
are not well educated so that they could not understand the message and system properly etc.
Plowshares, according to the study and customer’s opinion it has a bright future because there
has a much portion of people who are out of the banking activities. These people can be
financially included through agent banking. They can avail the banking services through it.
They will also be encouraged in savings through DPS, TDS, and savings account.

Table Of Content
Contents Page No.
Chapter One: Introduction 1-7
1.1 Introduction 3
1.2 Origin of the Report 3
1.3 Objective of the Study 3
1.4 Scope of the Study 4
1.5 Methodology of the Study
1.5.1 Collection of Primary Data
1.5.2 Collection of Secondary Data
4
1.6 Research Design 4
1.7 Questionnaire Design 5
1.8 Sampling Plan
1.8.1 Sample Characteristics
1.8.2 Population
1.8.3 Sample Size
1.8.4 Sampling Unit
1.8.5 Sampling Procedure
5
1.9 Data Collection Technique 5
1.10 Research Tools 5
1.11 Data Analysis Technique 6
1.12 Analytical Technique
1.12.1 Regression Model
6
1.13 Data Analysis & Reporting Tools 6
1.14 Problems Definition 6
1.15 Limitation of the Study 7
Chapter Two: Company Profile 8-26
2.1 Historical Background 9
2.2 Company Profile of Bank Asia 10
2.3 Company Overview 11
2.4 Vision, Mission & Core Values
2.4.1 Vision
2.4.2 Mission
2.4.3 Core Values
11-12
2.5 Structure of the Corporate Office 13
2.6 Organizational Hierarchy 14

2.7 Salient Features of Bank Asia 15
2.8 Product/Service Offerings
2.8.1 Business Banking
2.8.2 Small and Medium Enterprise (SME)
2.8.2.1 Term Loan
2.8.2.2 Over Draft
2.8.2.3 Special Products
2.8.3 Consumer Finance
2.8.4 Credit Card
2.8.5 Treasury
2.8.5.1 Money Market
2.8.5.2 Foreign Exchange Market
2.8.6 Deposit Accounts
2.8.7 Islamic Banking
2.8.7.1 Deposit Products
2.8.7.2 Investment Products
2.8.8 Service Products
2.8.9 Off-shore Banking Unit (OBU) Products
2.8.10 Capital Market Operation
15-18
2.9 Policy of Bank Asia 18
2.10 Corporate Objectives of Bank Asia 19
2.11 Bank Asia Agent Banking Model 19
2.12 Employment Opportunity 20
2.13 Slogan 20
2.14 Logo 20
2.15 Key Financial Condition 21
2.16 Branches 21
2.17 Corporate Head Office 21
2.18 Competitors 22
2.19 Corporate Social Responsibilities
2.19.1 Higher Study Scholarship
2.19.2 Ophthalmological Operation
2.19.3 Computer Learning Centers
2.19.4 Organizing Eye Camp
2.19.5 Blood Donation
2.19.6 Culture and Heritage
22-23
2.20 Green Banking 23-24
2.21 SWOT Analysis
2.21.1 Strength
2.21.2 Weaknesses
24-26

2.21.3 Opportunities
2.21.4 Threats
Chapter Three: Literature Review 27-32
Chapter Four: Findings & Analysis 33-61
4.1 Statistical Analysis 34-56
4.2 KMO and Bartlett's Test 57
4.3 Rotated Component Matrix 57-58
4.4 Multiple Linear Regression Analysis 58
4.5 Model Summary 59
4.6 ANOVA 59-60
4.7 Coefficient of Variance 60-61
4.8 Findings of The Study 61
Chapter Five: Conclusion and Recommendations 62-64
5.1 Recommendations 63-64
5.2 Conclusion 64
References 65-68
Appendix 69-77

“Agent Banking and Its Prospects in Bangladesh:
A Study on Bank Asia”

Agent Banking and Its Prospects in Bangladesh Introduction
Page | 3
1.1 Introduction
Agent banking is a unique and new service system to the banking sector and many people do
not fully understand the systems of agent banking. Agent banking is a which provides to
customers a limited scale banking and the various types of financial and transactional services
to people who doesn’t get any opportunity or services from banking sector in their area and it
will be provided through an agent who will be the representative of a certain bank and provide
all the possible banking services they can get.
Agent banking services is banking services which are provided through engaged agents under
a valid agency agreement, service agreement or a similar agreement. It is the owner of an
outlet or branch who conducts banking transactions on behalf of a structural bank. These
retailers globally square measure being progressively used as necessary distribution channels
for money inclusion. Bangladesh Bank has additionally determined to push this
complimentary channel to achieve to the poor phase of the society additionally as existing
bank client with a variety of monetary services particularly to geographically spread locations.
With a read to making sure the security, security and soundness of the planned delivery
channel Agent Banking pointers are framed by the Bangladesh Bank to allow banks to be
engaged in agent banking.
1.2 Origin of the Report
The internship report is a basic requirement for the MBA program. The proposed topic is
“Agent Banking and Its Prospects in Bangladesh: A Study on Bank Asia”. The topic is
selected by myself, and supervised by Md. Abdullah, Assistant professor, Dept. Of Marketing,
Comilla University.
1.3 Objective of the Study
The main objective of the study is to gain practical knowledge about the job sector and
compares it with theoretical concept. There are some specific objectives. Such as:
 To develop knowledge about agent banking of Bank Asia.
 To gain knowledge about present market scenario of Agent Banking in Bangladesh.
 To know about the products and services of agent banking.
 To gain knowledge about how agent banking works.
 To identify the problem and prospects of agent banking in Bangladesh.
 To give recommendations regarding the agent banking activities.

Page | 4
1.4 Scope of the Study
Scope refers to the area of coverage. This report covers the major departments of the Banking
system, organizational structure, and background, basic functions of the various divisions and
the performance of the bank. For the project part, the study area and observations have been
limited to Agent Banking Department, Products and services of Agent Banking, and different
Functions of Agent Banking department of Bank Asia Limited.
1.5 Methodology of the Study
I have used both qualitative and quantitative research in my study. Various statistical and
analytical methods were used to process the primary data into presentable and understandable
format. Data regarding completion of this research has been collected from both primary and
secondary sources.
1.5.1 Collection of Primary Data
o Face to face conversation with the Executives and officers of the Agent Banking
department of Bank Asia Ltd.
o Face to face conversation with the Customers of Agent Banking of Bank Asia Ltd.
o Face to face conversation with the Agents of Agent Banking of Bank Asia Ltd.
o Practical work experiences.
1.5.2 Collection of Secondary Data
Along with the primary data I also have elaborated different types of secondary data in my
research from various external sources. These are as follows:
 Website of Agent Banking of Bank Asia Ltd.
 Annual report of agent banking of Bank Asia Ltd.
 Different papers of the organization along with related organization.
 Other secondary sources were books and articles on the related factors in the conceptual
framework of the report.
 Website of Bangladesh Bank.
 Different daily and online newspapers.
1.6 Research Design
Quantitative research based on the primary data. The data has been collected through
structured questionnaire.

Page | 5
1.7 Questionnaire Design
The questionnaire of my survey have made by considering the types of Likert Scale. I tried
my level best in setting up the questions and keep the questions easily communicable and
recordable. Furthermore, I prepared this questionnaire in such a way that must uplift, motivate
and encourage the respondents to participate, cooperate and complete the interview. In
beginning of the questionnaire, I introduce myself, mention the name of the research topic,
and put a little description about the purpose survey respectively. Then, I proceed to
respondent section. In the third portion of the questionnaire, there are 18 direct and correlated
questions placed. I have used five-point Linkert Scale in the questionnaire of my survey. Each
item was rated on the five-point Linkert scale anchored the verbal statement at the number-
1= “Strongly Disagree”
2= “Disagree”
3= “Neutral”
4= “Agree”
5= “Strongly Agree”
1.8 Sampling Plan
1.8.1 Sample Characteristics
The sample of this study has been consisted of the customers and agents of agent banking of
Bank Asia ltd. I selected 60 peoples as sample from Comilla and Brahmanbaria.
1.8.2 Population
For time and budget constraints, I decided to pursue the agent and customers of agent banking
of Bank Asia Ltd. who have taken our services.
1.8.3 Sample Size
For conducting this research, I have taken the sample size as 60.
1.8.4 Sampling Unit
Agents and customers of Comilla and Brahmanbaria who give and use Agent Banking
services of Bank Asia Ltd.
1.8.5 Sampling Procedure
For conducting this research, I used Cluster sampling method. Cluster sampling is a sampling
technique used when "natural" but relatively homogeneous groupings are evident in a
statistical population.
1.9 Data Collection Technique
Survey method was used to collect data.
1.10 Research Tools
Data were collected through questionnaire.

Page | 6
1.11 Data Analysis Technique
After collecting the data, then these were organized and summarized through scrutiny, then
coding and interpreting the result.
1.13 Analytical Technique
Calculating Mean, Standard deviation and 95% confidence level.
1.13.1 Regression Model:
The functional relationship between the variable can be expressed as:
Multiple Regression Equation: Y= β 0 + β1 X 1 + β 2 X 2 + β3X3 + Ui
1.14 Data Analysis & Reporting Tools
Data analysis has been done by using different types of computer application programs such
as MS word, MS Excel and SPSS 20.0
1.15 Problems Definition
When I was working with Agent Banking of Bank Asia Ltd. I found some problems which
are creating obstacles in its growth. These are as follows:
 The agents are not well trained about the activities of agent banking.
 The whole system is online but the server often faces problems.
 The 3G is not always available in the village which is needed to work smoothly.
 The Bank officers are not well informed about all the services and activities of agent
banking.
 The peoples are feeling confusion about it. They can’t have hundred percent faith in
it.
 The agents are not well educated.
 Most of the cases the agents are too busy with the work of Union Digital Centre that
they can’t give enough time in the banking activity.
 The profit for the agents is not enough. They will have to wait a long time to make it
cash cows but most of them don’t have that much patience.
 Bank Asia doesn’t provide any kinds of commission to the agents for account opening
or feeling up the account form. But some others bank giving a specific amount of
commission for account opening.
 Most of the agents are not solvent enough to invest in this business but it requires a lot
of investment.
 The location of the outlets is not in proper places; these should be in the markets rather
than in Union Parishad.
 Bank doesn’t take promotional program in a regular basis.
 The customers are not well informed about the products and services of the agent
banking. They don’t have enough knowledge about agent banking.

Page | 7
1.16 Limitation of the Study
As I was an employee of Bank Asia, it was easy to collect data from different parts. But there
has some limitation also. I had to face different problems during the study. Some of these are
given below-
 Respondents were not willing to share information.
 Most of the calculations had to be made taking Bank Asia Ltd.’s figures as the industry
average.
 Most of the relevant literature and study materials on the banking sector were not
updated.
 Lack of intellectual thought and analytical ability to make it the most perfect one.
 It was very difficult to sketch the complete picture of Bank Asia, Agent Banking
activities within such a short time period of three months.

Agent Banking and Its Prospects in Bangladesh Company Profile
Page | 9
2.1 Historical Background
Bank Asia Limited is a schedule Bank under private sector established with in the ambit of
Bank Company Act, 1991 and was incorporated as a Public Limited Company Under
Company Act, 1994 on September 28, 1999. The Bank started commercial banking operations
from November 27, 1999 with the inauguration of the Bank’s Corporate Office at the Rangs
Bhaban. It was the time when a rapid economic development in the country concurrent with
urbanization and life style change created demands for new banking products and services. A
huge public response has enabled the Bank to keep up the plan of expanding its network. The
opening of the principal office was the big leap forward and successively the opening of
Gulshan and Chittagong branch expanded the horizon of Bank Asia to bring its services to
valued clients more effectively. Within a short period, the bank has opened four more branches
in Dhaka and two branches in Sylhet and Kishorgonj. In February 2001, Bank Asia took over
the Bangladesh operation of The Bank of Nova Scotia, the first acquisition of a foreign bank
by a local bank in the banking history of Bangladesh. Later, Bank Asia took over the
Bangladesh operation of Muslim Commercial Bank of Pakistan in December 2001. These
courageous moves were possible for some visionary decision makers and also dedicated team
of professionals who are constantly putting their best efforts to establish the bank as one of
the leading concerns in the industry.
Bank Asia Limited is one of the most successful banks among the third- generation private
banks. The bank has successfully entered its seventeenth year of operations. With professional
and dedicated team of management having long experience, commendable knowledge and
expertise in conventional and modern banking, the bank has achieved success among its peer
group within a short span of time.
Within a short span of time Bank Asia has established itself as one of the fast growing local
private banks. It has at present a network of one hundred and twelve branches serving many
of the leading corporate houses and is gradually moving towards retail banking. Its other
significant delivery channel is the shared ATM Network. Bank Asia has almost 150 ATMs as
a member of ETN (E – cash) along with eleven other banks. In 2003 the Bank again came to
the limelight with oversubscription of the Initial Public Offering of the shares of the Bank,
which was a record (55 times) in our capital market’s history and its shares commands
respectable premium. Bank Asia has been actively participating in the local money market as
well as foreign currency market without exposing the Bank to vulnerable positions. The
Bank’s investment in Treasury Bills and other securities went up noticeably opening up
opportunities for enhancing income in the context of a regime of gradual interest rate decline.
Bank Asia is maintaining its competitiveness by leveraging on its Online Banking Software
and modern IT infrastructure. It is the pioneer amongst the local banks in introducing
innovative products like SMS banking, and under the ATM Network the Stellar Online
Banking software enables direct linking of a client’s account, without the requirement for a
separate account. Currently Bank Asia is bank with a network of 112 branches including 4
rural branches.

Page | 10
2.2 Company Profile of Bank Asia
Table-1: Company Profile of Bank Asia
Type Private
Industry Banking
Letter of Intent received February 24, 1999
First meeting of the
Promoters held
April 15, 1999
Certificate of Incorporation
received
September 28, 1999
Certificate of
Commencement of Business
September 28, 1999
First meeting of the Board of
Directors held
October 01, 1999
Banking license received October 06, 1999
First Branch license received October 31, 1999
Inauguration of Bank November 27, 1999
Headquarters Rangs Tower(2nd to 6th Floor),
68,Purana Paltan , Dhaka-1000.
Key people Mr. A. Rouf Chowdhury
(Chairman), Md. Arfan Ali
(President & Managing
Director)
Products Deposit Schemes, Credit
Schemes, SME banking,
Islamic Banking, Miscellaneous
Products
Number of Promoters 22
Number of Directors 12
Number of Branches 112
Number of SME centers 10
Islamic wings 06
Brokerage branches 02
Total Customer Deposit 18,000 Crore Taka
Total Bank Account 1,15,981
Slogan For Better Tomorrow
Website http://www.bankasia-bd.com
Source: Website of Bank Asia

Page | 11
2.3 Company Overview:
“For A Better Tomorrow” is the mission of Bank Asia Limited through a contemplation of
assuring a professional term of Bankers is running the day-to-day operation of the Bank. Bank
Asia has so far been highly successful in keeping its customers satisfied with its high quality
service, while continuing its expansion to reach more people around the country. Bank Asia
conducts all types of commercial banking activities. The Bank is involved in most of the areas
of commercial banking operations.
The core business of the Bank comprises of trade finance, term finance, working capital
finance and corporate finance. Bank Asia has acted as the lead arranger in raising term loan
for a number of projects under syndicated finance and also participated in some cases under
such financing arrangement. The Bank is also providing personal credit, service related to
local and foreign remittances and several other products. The “Personal Credit” scheme of the
Bank, which is designed to help the fixed income group in raising standard of living is
competitively priced and has been widely appreciated by the customers. Bank Asia’s program
under “Poverty Alleviation Scheme” delivered through rural branches in the form of micro
credit is playing an important role towards socio economic development of the poor people in
the rural areas. The management of Bank Asia is determined to maintain and upgrade the
quality of these resources through continuous training and upgrading technology to keep pace
with market demands, new developments and practices of the competitors. Bank Asia entered
the market at a time when economic policy environment of the country is poised for higher
level of business activities and growth. The prevailing macroeconomic management and the
government’s determination to carry on reforms in the banking sector provide a supporting
and encouraging environment.
Bank Asia Limited started its service with a vision to serve people with modern and innovative
banking products and services at affordable charge. Being parallel to the cutting edge
technology the Bank is offering online banking with added delivery channels like ATM, Tele-
banking, SMS and Net Banking. And as part of the bank's commitment to provide all modern
and value added banking service in keeping with the very best standard in a globalize world.
2.4 Vision, Mission & Core Values
Bank Asia is a third generation public limited commercial bank. It received the Certificate of
Incorporation on September 28, 1999 and came to operation on November 27, 1999. Now
after 12 faithful years of dedicated and reliable services, Bank Asia has created an envious
position for itself among the leading banks of the country with an Asset base of TK. 117
billion, Deposit of TK 95 Billion and 70+ outlets all over the country. But most importantly,
the Bank has an unsurpassed legacy attached with its image.
Pay-off line/slogan:
“For A Better Tomorrow”

Page | 12
2.4.1 Vision
Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the new
millennium, reflecting the national dream. Our vision is to build a society where human
dignity and human rights receive the highest consideration along with reduction of poverty.
2.4.2 Mission
 To assist in bringing high quality service to our customers and to participate in the
growth and expansion of our national economy
 To set high standards of integrity and bring total satisfaction to our clients,
shareholders and employees
 To become the most sought after bank in the country, rendering technology driven
innovative services by our dedicated team of professionals
2.4.3 Core Values
 Place customer interest and satisfaction as first priority and provide customized
banking products and services
 Value addition to the stakeholders through attaining excellence in banking operations
 Maintain high ethical standard and transparency in dealings
 Be a compliant institution through adhering to all regulatory requirements
 Contribute significantly for the betterment of the society
 Ensure higher degree of motivation and dignified working environment for our human
capital and respect optimal work-life balance
 Committed to protect the environment and go green

Page | 13
2.5 Structure of the Corporate Office
Figure-1: Structure of the Corporate Office
Source: Bank Asia’s Official Document
Board of Directors Chairman
Managing Director
Deputy Managing Director
Advisor
General ServiceCompany Secretary Operations
Board Affairs Share
Department
Implementation of
Board Decisions
Human Resource Accounts/
Budget
MIS/ITDevelopment &
Planning
Specialized
Services
TreasuryInternational DivisionCredit
Dealing RoomForeign Ex. Call Market
Corporate/Retail Product Development &
Marketing
Public Relations

Page | 14
2.6 Organizational Hierarchy
Figure-2: Organizational Hierarchy
Source: Bank Asia’s Official Document
President & Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
First Vice President
Assistant Vice President
Senior Executive Officer
First Assistant Vice President
Senior Executive
Executive Officer
Senior Officer
Officer
Junior Officer
Assistant Officer
Banking Officer
Trainee Officer

Page | 15
2.7 Salient Features of Bank Asia
 Only Bangladeshi Bank to acquire (Purchase) operations of 02 (two) foreign banks
namely:
Bank of Nova Scotia of Canada
Muslim Commercial Bank of Pakistan
 Majority stakeholder of ERA INFOTECH (A joint Venture IT Company)
 Centralized Trade Services Operation (Facilitates Export/ Import and Inward and
Outward Remittance foreign-AD Branches)
 Central Clearing Fully Automated
 Online Charges – Free
 Credit Rating (valid up to June 2012)
Long Term: AA2
Short Term: ST1
 No. of Shareholders (up to December 2011): 16,602
2.8 Product/Service Offerings
2.8.1 Business Banking
 Overdraft
 Secured Overdraft
 Secured OD (Earnest Money)
 Working capital finance
 Loan against Trust Receipt
 Loan against Cash Incentives
 Bill discounting
 Loan Syndication and structured Finance
 Packing Credit
 Demand Loan
 Demand Loan (work order)
 Time Loan
 Transport Loan
 House Building Loan
 Term loan
 Lease Finance
 Letter of Guarantee
 Letter of Credit
 Back to back Letter of Credit

Page | 16
2.8.2 Small and Medium Enterprise (SME)
2.8.2.1 Term Loan
o Subidha -Unsecured Trading
o Sondhi -Secured Trading
o Sristi – Unsecured Manufacturing
o Shombridhi- Secured Manufacturing
o Shofol – Unsecured Service
o Sheba- Secured Service
2.8.2.2 Over Draft 
o Somadhan – Secured
2.8.2.3 Special Products
o Utshob- Seasonal Business
o Subarno- Women Entrepreneur
2.8.3 Consumer Finance
 Auto Loan
 Consumer Durable Loan
 Unsecured Personal Loan
 House Finance
 Loan for Professionals
 Senior Citizen Support
2.8.4 Credit Card
o MasterCard Local Credit Card
o VISA Dual Currency Credit Card
o VISA Local Credit Card
o VISA Butterfly Credit Card
o VISA Mini Credit Card
o VISA International Card against RFCD, RQ A/C
o Virtual Card
o SME Credit Card
o NBFI Card Cheque
o International Prepaid Hajj Card

Page | 17
2.8.5 Treasury:
2.8.5.1 Money Market 
 Overnight Call
 Repo and Reverse Repo
 Swap
 Sale and Purchase of Treasury Bill & Bond
 Term Placement
 Term Borrowing
2.8.5.2 Foreign Exchange Market 
 Spot
 Forward
 Interbank Buy / Sale
2.8.6 Deposit Accounts
 Saving Account
 Current Account
 Short Notice Deposit
 Fixed Term Deposit
 Foreign Currency Account
 Deposit Pension Scheme
 Monthly Benefit Scheme
 Double Benefit Scheme
 Triple Benefit Scheme
 Bank Asia Sanchoy Plus
2.8.7 Islamic Banking
2.8.7.1 Deposit Products
 Al-Wadiah Current Account (AWCA)
 Mudaraba Savings Account (MSA)
 Mudaraba Special Notice Deposit Account (MSNDA)
 Mudaraba Term Deposit Account (MTDA) of different
 Tenure
 Mudaraba Hajj Savings Scheme (MHSS)
 Mudaraba Deposit Pension Scheme (MDPS)
 Mudaraba Monthly Profit Paying Deposit Scheme (MMPPDS)
 Smart Junior Saver (SJS)

Page | 18
2.8.7.2 Investment Products
 Bai Murabaha Muajjal
 Hire Purchase Shirkatul Melk (HPSM)
 Musharaka
 Quard against Accepted Bills
2.8.8 Service Products
 ATM Services
 Remittance Service
 Locker Service
 Online Banking
 Internet Banking
 Phone Banking
 Mobile Banking
 Remote Banking (EBEK)
 SWIFT
 Centralized Trade Services
 Student File
 Travellers’ Cheque
2.8.9 Off-shore Banking Unit (OBU) Products
o On-shore Bill Discounting through OBU
o Bill Discounting
o Capital Finance
o Working Capital Finance
o Trade Finance
o On-shore Export Bill Discounting
2.8.10 Capital Market Operation
 Brokerage Operation
 Margin Loan
2.9 Policy of Bank Asia
Bangladesh is trying hard and soul to make and give effort to be an efficient player in the
global market in terms of business. Accordingly, Bank Asia Limited will as a matter of policy,
mobilized its financial, non-financial and human resource in conformity with international
norms, standards and practices.
In the domestic economic field Bank Asia Limited has set its sight on providing its clientele
the edge of banking and finance which will enable then to run their enterprises profitability.
Bank Asia Limited give a hand the customer with its technology, know how training and
specialization, and will provide world class banking system.

Page | 19
2.10 Corporate Objectives of Bank Asia
Bank Asia’s corporate objectives are reflected in the following areas:
 Highly personalized service.
 Customer-driven focus.
 Total commitment to quality.
 Contribution in the economy.
 Quality of human resources.
 Commitment to its clients at each level.
2.11 Bank Asia Agent Banking Model
Bank Asia made a unique Agent Banking model with technology based banking concept
ensuring appropriate security with real-time banking for customers. Agents Booths are
distinctly branded with Bank Asia Agent Banking logo to provide products and Services of
Bank Asia. All the Agent booths are equipped with Laptop/P.C, Image capturing device, POS
machines etc. Agent banking transactions are on real time basis and integrated with Bank’s
Core Banking solution. Customers get instant confirmation of transaction through Mobile
SMS and system generated Printed money receipts. Besides, following steps are taken for
smooth handling of Agent Banking:
▪ Bank Asia Agent Booths are distinctly branded with Bank Asia logo & Agent’s name,
a like to a small bank branch.
▪ Bank Asia branches and Regional office will monitor agent operating in the area for
smooth functioning besides monitoring by Agent Banking department.
▪ Bank Asia agent are fully equipped with I.T devices like POS, card reader, Image
capturing Web Cam, biometric identification system and mobile connectivity through
internet banking.
▪ All Agent Banking Customers are logged through their Biometric authorization.
▪ Customer transactions are integrated to the Core Banking System and real time
transaction and customer gets instant transaction confirmation through SMS and
system generated printed receipt.
▪ Bank Asia Agent booths are branded through Bank's logo clearly, which identifies the
Bank and agent’s identity to the customer. Bank’s contact number and call center
number also given for emergency customer help.
▪ For cash transaction, Agent have to maintain an account in Agent Banking system,
which is fetched for cash deposit and withdrawal transaction by customers and system
automatically debit or credit agent account and customer account simultaneously.
Agent has to maintain sufficient balance to accommodate customer transaction value.
The Agent account balance is determined on the volume of transaction and Agent
account have to maintain sufficient balance and Cash in hand balance for uninterrupted
transaction of customers.

Page | 20
2.12 Employment Opportunity
Bank Asia recruit graduate and post graduate candidate in two different post. One is Trainee
Officer and another is Management Trainee Officer. In trainee officer candidate should have
minimum graduation in business studies, statistics, physics, mathematics or in economics.
After joining as Trainee Officer (TO), the candidate should have to be in training period for
one year. After successful training of one year he/she will be absorbed as banking officer.
On the other hand, for Management Trainee Officer, the candidate should have minimum
Post graduation degree in business studies, statistics, physics, mathematics or in economics.
After joining as Management Trainee Officer (MTO), the candidate should have to be in
training period for one year. After successful training of one year he/she will be absorbed as
senior officer.
2.13 Slogan
“For A Better Tomorrow’’ is the Slogan of the Bank Asia Limited. As the Vision is to make
Bangladesh a poverty free country and Mission is to serve the best to satisfy the client,
Shareholders and also satisfy the employees the slogan is go through with the vision and
mission.
2.14 Logo
The First one from the left is the logo of bank Asia, then the first one of the right side is the
logo with name of Bank Asia, and the rest is the logo of Agent Banking of Bank Asia Ltd.

Page | 21
2.15 Key Financial Condition
Table-2: Key Financial Condition of Bank Asia
Title Amount (In Million)
Total deposits (as on 30/06/2016) Tk. 178,518.11
Total advance (as on 30/06/2016) Tk. 164,021.51
Export (Jan-16-Jun-16) Tk. 53,142.08
Import (Jan-16-Jun-16) Tk. 78,298.62
Remittance (Jan-16-Jun-16) Tk. 22,333.80
Total Assets (as on 30/06/2016) Tk. 235,930.60
Credit Rating Status
AA2 - Long Term ST-2
Short Term
Contribution to National Exchequer
(2015)
Tk. 3,900.55
Statutory Reserve (as on
30/06/2016)
Tk. 6,084.43
Retained for investment and future
(2015)
Tk. 526.98
Source: Bank Asia’s Webpage
2.16 Branches
There are 112 branches along with the corporate head office in Purana Paltan. The branches
are located in the important cities of the country as well as in every district of the country,
such as: Dhaka, Chittagong, Sylhet, Khulna, Rajshahi, Barishal, Rongpur, Comilla,
Mymensing, Narayanganj, Gajipur etc.
2.17 Corporate Head Office
Table-3: Corporate Head Office
Head Office of Bank Asia Ltd. Head Office of Agent Banking of Bank
Asia Ltd.
Rangs Tower (2nd to 6th Floor)
68, Purana Paltan
Dhaka-1000
Tell: 02-7110042,7110062,7110147,
7110173,7110177,7110218,
Fax : 88-02-7175524,
E-mail : bankasia@bankasia.com.bd
Web : www.bankasia-bd.com
Bengal Centre (3rd Floor)
28 Topkhana Road
Dhaka-1000
Tell: 88-02-7125019, 7173592
E-mail: Agentbanking@bankasia.com.bd
Web: www.bankasia-bd.com/
Source: Bank Asia’s Webpage

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2.18 Competitors
In terms of Agent Banking the competitors of Bank Asia are:
 NRB Bank Ltd.
 Dutch Bangla Bank Ltd
 Al-Arafah Islami Bank Ltd.
 Modhumoti Bank Ltd.
 Mutual Trust Bank Ltd.
 UCBL
 Standard Bank Ltd.
2.19 Corporate Social Responsibilities
Bank Asia has been conscious of corporate social responsibility from the very beginning of
its operation in 1999. The Bank looks beyond short-term quantitative gains and concentrates
on issues which make the financial institution socially responsible and thus expects a
sustainable balanced growth.
Bank Asia has three major CSR programs. These are as follows:
 Higher Study Scholarship
 Ophthalmological Operation
 Operating Computer Learning Centers
2.19.1 Higher Study Scholarship
Bank Asia provides higher scholarship to rural poor meritorious students, who are studying in
important subjects in public universities. So far (since 2005) 215 students have been awarded
the scholarship. Of them, 94 scholarships have been provided this year. Total expenditure of
scholarship this year is Tk 53.08 lac for this purpose while Tk.1.57 crore till date. Next year
we have a plan to provide 100 more scholarships, which will raise beneficiary numbers to
334, and budget will be Tk 10.64 million/Tk 1.64 crore. The scholarships are given on the
basis of SSC and HSC results.
It may be mentioned that Bank Asia gives scholarships for higher study to the meritorious
students in the rural areas, where the Bank has branches. A total of 134 (one hundred thirty-
four) students have been selected for Bank Asia Higher Study Scholarship for the current year.
2.19.2 Ophthalmological Operation
The Bank bears entire cost of cataract-related eye operations, whose parents are poor and
cannot afford the high cost of operations. Since 2006, 874 operations have been conducted
under the program at a cost of about Tk 92 lac (till July, 2010). Most of the children are
leading normal life and learning education.

Page | 23
2.19.3 Computer Learning Centers
Bank Asia, with the help of D-net, is operating 13 Computer Learning Centers (since 2006)
in rural areas, where rural youths learn computer education. A total of Tk 4.7 lac has been
spent for operational cost of these centers this year. Besides, 12 more learning centers have
been set up this year involving Tk.1.58 million/Tk.15.76 lac as a part of our expansion
program. So far, about 3000 youths received computer training though these centers, and
cost involvement in this CSR program is Tk.1.03 crore (till Dec. 2009)
2.19.4 Organizing Eye Camp
Bank Asia started eye screening of 10,000 children in 50 schools in four upazilas of
Kishoreganj district namely, Tarail, Sadar, Hossainpur and Pakundia with the help of
Kishoreganj Eye Hospital of Nari Uddog Kendra (NUK). If the pilot program, involving
Tk.5 lac, is successful we will cover whole the district and subsequently whole the country
to save eyes of the children of the nation.
2.19.5 Blood Donation
Bank Asia every year organizes blood donation programs where Bank staffs donate blood.
As recognition, Bank Asia received the Highest Blood Donation Organization Award from
the Bangladesh Red Crescent Society Blood Centre in this (2010) year. Bank Asia spent Tk
1 million/10 lac for organizing blood donation program.
2.19.6 Culture and Heritage
Bank Asia is dedicated to protect culture and heritage of the country. In respect to the
martyred freedom fighters, Bank Asia donated Tk 1 crore for Multijuddha Jadughar Nirman,
Tk2 lac to Muktijuddher Smriti sangrakshan Kendra for the international conference on
Human Rights.
2.20 Green Banking
Some green banking activities of Bank Asia are given bellow:
 Bank Asia has been one of the pioneers in introducing Online Banking and it covers
112 branches/ SME centers, 68 own ATMs, 2890 shared ATMs. Clients can also
have access to their accounts through Internet & Mobile Banking.
 Bank Asia has been equipped with Bangladesh Automated Clearing House (BACH)
system since October 2010, which allows paperless cheque clearing.
 Instruments of Green Banking offered by Cards Division include E-Statement, SMS
Banking, SMS Alert, Net Banking, E Fund Transfer, Digital Attendance and E Mail
corresponding, which help reducing printing paper.

Page | 24
 Our Cards Department has formally launched its digital filling system where more
than 200,000 pages of various files have been digitally archived and indexed it for
digital query.
 They are saving around 32% electricity (used for lighting purpose) by using the
day light in our Corporate Office. We have installed Solar panels in our 7 branches
located at Patherhat, Madhobdi, Dohajari, Hajigonj, Faridpur, Elephant Road and
Lalmatia branches.
 In an alliance with a Canadian firm AlertPay, Bank Asia is the first local bank to
introduce an easy online payment gateway service that will allow the country's IT
freelancers to bring their dollars deposited in the accounts with AlertPay in any of
their bank accounts in the country through Bank Asia at cheaper rate.
 Bank Asia is the 10th private commercial bank to launch Express cash system which
is easier and faster domestic remittance service.
 Bank Asia is a pioneer in rolling out Online Learning Tool (OLT). Our Human
Resources Department (HRD) implemented OLT by which the trainees can learn
from their own work station without attending any formal class.
2.21 SWOT Analysis
Every organization is composed of some internal strengths and weaknesses and also has
some external opportunities and threats in its whole life cycle. These are discussed below:
2.21.1 Strength
 Bank Asia provides its customers excellent quality of service.
 Bank Asia draws its strength from the adaptability and dynamism it possesses. It has
quickly adapted to world class standard in terms of banking services. Bank Asia has
also adapted state of the art technology to connect with the world for better
communication to integrate facilities.
 Bank Asia is a financially sound company backed by the enormous resource base of
the mother concern Rangs Group.
 All the levels of the management of Bank Asia are solely directed to maintain a culture
of the betterment of the quality of the service and development of a corporate brand
image in the market through organization wide term approach and open
communication system.
 Bank Asia utilizes state-of-the-art technology to ensure consistent quality and
operation. The corporate office is equipped with SWIFT (SWIFT is a banking
software, used by Bank Asia). All other branches are also equipped with SWIFT
system.
 The key contributing factor behind the success of the Bank Asia is its employee, who
are highly trained and most competent in their own field.

Page | 25
 Bank Asia provides its workforce an excellent place to work in. Total complex has
been centrally air conditioned.
2.21.2 Weaknesses
 Bank Asia has limited human resources compared to its financial activities. As a result,
many of the employees are burdened with extra workloads and work late hours without
any overtime facilities. This might cause high employee turnover that will prove to be
too costly to avoid.
 The officers of Agent banking of Bank Asia are not well trained because they were
sent for the work after a short time training. For that reason, they can’t work smoothly.
 The Agents are not well trained also.
2.21.3 Opportunities
 Agent banking is a part of A2i (Access to Information) projects of Government, for
that reason govt. also giving special facilities for this. Govt. gives space in Union
Parishad to operate its business.
 Bank Asia starts Agent Banking for first time in Bangladesh and it is covering the
whole country rapidly. So it has much scope to enlarge its business comparative to its
competitors.
 Agent Banking is becoming popular day by day to the mass people because it takes
less time for any kinds of transection where the branches are taking much time for
crowd of many people.
2.21.4 Threats
 There are lots of banks in Bangladesh but all of these hadn’t start agent banking yet.
These are starting it gradually.
 As previously mentioned, the world is advancing e-technology very rapidly. Though
Bank Asia has taken effort to join the stream of information technology, it is not
possible to complete the mission due to poor technology and infrastructure of our
country.
 Due to high customer demand, more and more financial institutions are being
introduced in the country. There are already 58 banks of various types are operating
in the country. Many banks are entering the market with new and lucrative products.
The market for banking industry is now a buyer dominated market. Unless Bank Asia
can come up with attractive financial products in the market, it will have to face steep
competition in the days to come.

Chapter Three
Literature Review

Agent Banking and Its Prospects in Bangladesh Literature Review
Page | 28
A recent study on Agent banking, the revolution in financial service sector of Bangladesh
by Md. Razib Siddiquie found that Agent banking is very successful in Latin America &
Africa. Other developed like United Kingdom, Australia etc. countries are also gradually
deploying agent banking because it reduces the cost of operating of the bank. Most of the
services of a bank can be provided through agents, thus people of remotest area of a country
can be brought under proper financial structure by the virtue of agent banking. According to
the agent banking guideline the software of any individual agent will be connected to the core
software of the bank, so transactions that will take place in agent premises will be shown in
the banking system real-time and those transactional statements can be used anywhere and
everywhere for different purposes of the client.
A recent study on The impact of agent banking on customer satisfaction by Masila
Christopher kitali et. al. (June, 2015) showed that most customers were satisfied with agent
bank services that is a mean score of above 2.0. The factors that led to this were such as
banking agents being highly qualified and responsive towards customer satisfaction. The
customers said that they would prefer to go to agent bank outlets other than the bank itself.
They also said that they were regular agent banking customers and would recommend it to
others.
Impact of Agent Banking on Performance of Deposit Money Banks in Nigeria by Nkiru
Patricia-Nezianya & Daniel Izuchukwu (2014) investigated that Agent banking has become
an essential practice of financial institution in bringing their services closer to the people at
the grass root. There is no doubt that agent banking if adopted into Nigerian banking system
will help to improve banks profitability.
Agent Banking and Its Prospects in Bangladesh by Mirza Sami Adib (2016) had showed
that Agent banking service is kind of new to this country and it’s still not that spread across
the country. The main purpose of agent banking is to bring and introduce the banking services
to the people of rural areas through an agent where the physical structure of a bank can’t
establish there.
How Agent Banking Changes the Economics of Small Accounts by Clara Veniard et. al.
(November 2010), the amount of money expended by financial service providers to serve a
poor customer with a small balance and conducting small transactions is simply too great to
make such accounts viable. In addition, when financial service providers do not have branches
that are close to the customer, the customer is less likely to use and transact with their service.
However, we see the emergence of new delivery models as a way to drastically change the
economics of banking the poor. By using retail points as cash merchants (defined here as agent
banking), banks, telecom companies, and other providers can offer saving services in a

Page | 29
commercially viable way by reducing fixed costs and encouraging customers to use the
service more often, thereby providing access to additional revenue sources.
Fred Gichana Atandi, Challenges of agent banking experiences, There is an increasing need
to promote technological and institutional innovation as a means to expand financial system
access and usage, including addressing infrastructure weaknesses and empowering business
enterprises by developing financial literacy and financial capability programs to bring all
people on board and all to participate in economic development of a country, perhaps agent
banking will offer a solution to slow pace of individuals enterprise development especially
from the rural areas.
Use of agents in branchless banking for the poor: rewards, risks, and regulation by Timothy
R. Lyman et. al. (October, 2006) realize that rather than using bank branches and their own
field officers, agent banking offers banking and payment services through postal and retail
outlets, including grocery stores, pharmacies, seed and fertilizer retailers, and gas stations,
among others. For poor people, “branchless banking” through retail agents1 may be far more
convenient and efficient than going to a bank branch. For many poor customers, it will be the
first time they have access to any formal financial services—and formal services are usually
significantly safer and cheaper than informal alternatives.
Nefa Chiteli (2013) investigated Agent Banking Operations as a Competitive Strategy of
Commercial Banks, and found that Organizations exist as open systems hence there is constant
interaction within the environment in which they operate. In this era of ever changing global
economy with every organization striving to achieve competitive advantage since the changes
present both opportunities and challenges, Johnson et.al. (2003) notes that the organizations
must find ways of operating by developing new competencies as the old competencies gained
are quickly eroded due to changes in both internal and external environments. Because
organizations cannot run away from innovation which sustains them, there is need for them
to change with the changes in the environment otherwise they would be irrelevant. To ensure
survival and success, organizations need to develop capability and capacity to manage threats
and exploit emerging opportunities promptly. This requires formulation of competitive
strategy that refers to the positioning of a firm to maximize the value of the capabilities that
distinguish it from its competitors. The Kenyan business environment has experienced many
changes among them: international, privatization, increased competition, acceleration
implementation of economic reforms, increased customer demands, privatization and
commercialization of public sector, price decontrols and liberalization of both domestic and
foreign markets (Aosa, 1992).
According to Allen et. al. (2006), when a firm design, produces and markets a product more
efficiently than its competitors such a firm has implemented a cost leadership strategy.

Page | 30
Attempts to reduce costs will spread through the whole business process from manufacturing
to the final stage of selling the product. Any processes that do not contribute towards
minimization of cost base should be outsourced to other organizations with the view of
maintaining a low cost base, Allen et. al. (2006), Low costs will permit a firm to sell relatively
standardized products that offer features acceptable to many customers at the lowest
competitive price and such low prices will gain competitive advantage and increase market
share If the low cost base could be maintained for longer periods of time it will ensure
consistent increase in market share and stable profits hence consequent in superior
performance. Decision makers in a cost leadership firm will be compelled to closely scrutinize
the cost efficiency of the processes of the firm. Maintaining the low cost base will become the
primary determinant of the cost leadership strategy. For low cost leadership to be effective a
firm should have a large market share (Allen et. al.2006). New entrants or firms with a smaller
share may not benefit from such strategy since mass production, mass distribution and
economies of scale will not make an impact on such firms.
According to Allen et. al. (2004) a low cost may act as entry barriers since new entrants require
huge capital to produce goods or services at the same or lesser price than a cost leader. Further
some factors such as technology which may be developed through innovation and some may
even be resources developed by a firm such as long term healthy relationships build with
distributors to maintain cost effective distribution channels or supply chains. Similarly,
economies of scale may be an ultimate result of a commitment made by a firm such as capital
investments for expansions. Also raising barriers for competition by virtue of the low cost
base that enables the low prices will result in strong strategic positioning in the market.
The company or business unit may charge a premium for its product. This specialty can be
associated with design, brand image, technology, features, dealers, network or customer’s
service. Barney (2001) states that though a company may have several basis of differentiation,
at the end it is only a matter of customer perception. To build competitive advantage through
differentiation, a firm must search out sources of uniqueness that are burdensome and time
consuming for rivals to match (Thompson and Strickland, 2003). A focus strategy should
target market segments that are less vulnerable to substitutes or where a competition is
weakest to earn above-average return on investment. Organizations can make use of the focus
strategy by focusing on a specific niche is sometimes referred to as the niche strategy (Lynch,
2006). Firms pursuing this strategy are willing to service isolated geographic areas, satisfy
needs of customers with special financing, inventory or servicing problems or even to tailor
the products to somewhat unique demands of the small to medium sized customers.
According to Suoranta and Mattila (2004), as technology continues to be an important
element in financial service delivery, understanding the factors that influence the behavior of
consumers towards using electronic banking technologies will continue to be an important

Page | 31
area of research. According to the EFIA (2010), MFIs, commercial banks and other financial
institutions have tended to establish their traditional branches in urban centre leaving out on
areas that often do not have incentive or capacity to establish formal branches, this leaves out
a significant population from accessing banking services. Accessing financial services ensures
that an individual can access credit for personal development. MFIs and banks today can take
their financial services to this hard to reach and geographically dispersed areas and tap this
segment of clientele through agent banking.
According to the Oxford policy management (2010), the agents make use of the mobile phone
technology and internet banking technology to connect to the server of the principal institution
to carry out customer transactions. This model provides significant opportunity to reduce
transaction cost such as travelling by clients to seek services in established branches. When
MSEs uses technology to access financial products and services from traditional bank
branches it confers on the users of the service, convenience, reliability and affordability. The
usage of technology will make more people to be included in active financial systems without
any discrimination. This study will focus on why a large number of micro and small
enterprises are not yet using technology based financial products and services to transact with
financial institutions using mobile phones and prepaid cards to access their bank accounts with
very minimal travelling if any but in steady prefer travelling up to where the brick and mortar
branches are located.
According to Koivu (2002), an appropriate banking environment is considered a key pillar as
well as an enabler of economic growth (Koivu 2002). In an environment with a continuously
emerging wave of information driven economy, the banking industry in Kenya has inevitably
found itself unable to resist technological indulgence. The need for convenient ways of
accessing financial resources beyond the conventional norms has seen the recurrent expansion
and modernization of banking patterns.
According to Financial Sector Deepening Kenya (2010), the most recent data available
indicates that only 19% of adult Kenyans reported having access to a formal, regulated
financial institution while over a third (38%) indicated no access to even the most rudimentary
form of informal financial service. This leaves a percentage of more than 80% outside the
bracket of the reach of mainstream banking. The pent up demand for an affordable and reliable
way of holding funds while ensuring that risk levels are consigned to a minimum is
consistently unfolding. A system with the potential to obliterate the historical hurdles of cost
and free access which have for a long time stood in the way of willing partakers of banking
services evokes immediate attention and interest. The implementation of agent banking
services in Kenya is a testament to this fact.

Page | 32
According to the G20 Financial inclusion expert’s group report (2010), the member’s
countries were committed to identify and assess key policy, regulatory and supervisory issues
associated with new modes of financial service delivery to broaden and deepen access to and
use of formal financial services. These issues includes electronic money, stored value
instruments, retail payment systems, third party agent use, a diverse array of financial services
like deposit taking, insurance, lending, payment services among others and financial services
providers such as banks and non-banks, interoperable payment systems, financial capability
like literacy, capacity and education, consumer protection, competition and other risk based
approaches to promoting financial integrity This research will done to find the MSEs
perceived suitability of the technology to meet their immediate needs especially after
undergoing a financial literacy and education training equipping them with knowledge and
skills on money management and technology based financial services available to them at a
close range using agent banking.
According to Kwon and Schumann (2005), have come up with many factors cited in the
literature that motivate consumers to use internet banking including convenience, greater
accessibility from a time and place viewpoint, time saving, compatible with past technology
experience, ease of use, relative cheapness, improved service quality, and satisfactory
personal experience with other banking technologies .reported that consumers are concerned
about the confidentiality of personal information provided online and how banks may use this
information. Other studies by Curran and Meuter (2005), however, have shown that the
confidentiality element may act as a positive force so that feeling comfortable about providing
personal information through electronic banking system positively influences adoption of
internet banking.
According to Wong and Chang (2005), studies on Other dimensions of risk, the results are
also inconsistent with finding that consumers felt secure and safe conducting their banking
on-line, believing that transactions will be handled correctly, thus leading to a very positive
attitude towards on-line banking. According to Kaynak and Harcar (2005), the desire for
personal face to face service has been identified as a key reason for consumers not using
internet banking, however over 50% of respondents in a study indicated lack of face to face
contact did not discourage them from adopting internet banking. Further, according to Curran
and Meuter (2005), found that need for interaction did not predict attitude towards internet
banking, while according to Durkin et al. (2003), the importance attached to face to face
contact positively predicted the importance of using internet banking.

Chapter Four
Findings & Analysis

Agent Banking and Its Prospects in Bangladesh Findings & Analysis
Page | 34
4.1 Statistical Analysis
This study was conducted on “Agent Banking and Its Prospects in Bangladesh: A Study on
Bank Asia Ltd.” and the results are derived from the questionnaire which filled by customers
of Agent Banking of Bank Asia Ltd. and others banks. When conducted this research, I found
some important findings. Here, this study used SPSS (Statistical package for the social
sciences) software to catch out the findings of this report. All the SPSS result sheets have to
be converted into managerially understandable form. The analysis and findings are given in
the following simultaneously:
Table-4: Descriptive Statistics
Descriptive Statistics
N Mean Median Mode Std.
Deviation
Variance
Knowledge 60 4.05 4.00 4 .699 .489
Satisfactions about
Products Quantity
60 4.05 4.00 4 .649 .421
Products Comparison
with Competitors
60 3.95 4.00 4 .946 .896
Products Satisfaction 60 3.68 4.00 4 .813 .661
Service Cost 60 2.75 3.00 3 .856 .733
Cost Comparison
with Competitors
60 2.97 3.00 3 .802 .643
Hidden Charge 60 4.00 4.00 5 .957 .915
Proper Location 60 2.85 3.00 3 1.117 1.248
Agent Outlet In
Market
60 4.15 4.00 5 .936 .875
Give Special Offers 60 2.88 3.00 3 .940 .884
Promotion 60 3.07 3.00 3 1.118 1.250
Accessibility 60 4.07 4.00 5 1.056 1.114
Transection Security 60 4.00 4.00 4 .781 .610
Brand value 60 3.25 3.50 4 .876 .767
Timely 60 3.40 3.00 3 .764 .583
Officials 60 4.43 5.00 5 .698 .487
Agents 60 4.18 4.00 4 .770 .593
Valid N 60
Source: Primary Data

Page | 35
4.1.1 Gender of Respondents
Table-5: Gender Analysis
Gender
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Male 49 81.7 81.7 81.7
Female 11 18.3 18.3 100.0
Total 60 100.0 100.0
Figure-3: Gender Analysis
Interpretation: From the above table and chart, it shows that 81.7 percent respondents are
male and rest 18.3 percent respondents are female. It is also showing that the females are less
interested to use banking services comparative to males.

Page | 36
4.1.2 Age Analysis
Table-6: Age Analysis
Age
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Bellow 21 5 8.3 8.3 8.3
21-25 17 28.3 28.3 36.7
26-30 19 31.7 31.7 68.3
31-36 16 26.7 26.7 95.0
Above 36 3 5.0 5.0 100.0
Total 60 100.0 100.0
Figure-4: Age Analysis
under 21 years, 28.3 percent respondents are in between 21 to 25 years, 31.7 percent
respondents are in between 26-30 years, 26.7 percent are in between 31-36 and the rest 5
percent are above 36 years old. So it is showing that the peoples from 26 to 36 years are using
banking services mostly.

Page | 37
4.1.3 Profession Analysis
Table-7: Profession Analysis
Profession
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Student 16 26.7 26.7 26.7
Business 19 31.7 31.7 58.3
Service 13 21.7 21.7 80.0
Teacher 8 13.3 13.3 93.3
Others 4 6.7 6.7 100.0
Total 60 100.0 100.0
Figure-5: Profession Analysis
Interpretation: Here, total respondents were divided into occupation. Occupation was
divided into 5 groups as student, business, service holder, teachers, and others. From the Pie
Chart, it is found that 26.7% respondents are students, 31.7% are businessperson, 21.7% are
service holder, 13.3% are teachers, 6.7% are related with others occupation. It also shows that
Business persons are the most users of baking services.

Page | 38
4.1.4 Account Related Analysis
Table-8: Account Related Analysis
Do you have any account with Bank Asia Ltd.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Yes 40 66.7 66.7 66.7
No 20 33.3 33.3 100.0
Total 60 100.0 100.0
Figures-6: Account Related Analysis
Interpretation: From the above table and chart, it shows that 66.7 percent respondents have
account with agent banking of Bank Asia Ltd, and rest of the 33.3 percent respondents don’t
have accounts with agent banking of Bank Asia Ltd. They may have account with others bank.

Page | 39
4.1.5 Knowledge About Products
Table-9: Knowledge About Products
You are well informed about the products and services of agent banking of
Bank Asia Ltd.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Disagree 1 1.7 1.7 1.7
Neutral 10 16.7 16.7 18.3
Agree 34 56.7 56.7 75.0
Strongly
Agree
15 25.0 25.0 100.0
Total 60 100.0 100.0
Figures-7: Knowledge About Products
Interpretation: From the above table and chart, it shows that 56.7 & 25 percent respondents
are respectively agree and strongly agree with knowing about products which is positive for
the banks.

Page | 40
4.1.6 Satisfactions about Products Quantity
Table-10: Satisfactions about Products Quantity
The products of agent banking of Bank Asia Ltd. are enough to satisfied
customer needs.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Neutral 11 18.3 18.3 18.3
Agree 35 58.3 58.3 76.7
Strongly
Agree
14 23.3 23.3 100.0
Total 60 100.0 100.0
Figures-8: Satisfactions about Products Quantity
Interpretation: From the above table and chart, we can see that 58.3 & 23.3 percent
respondents are respectively agree and strongly agree with satisfaction about products
quantity which means that it has enough products to fulfill the need of the customers.

Page | 41
4.1.7 Products Comparison with Competitors
Table-11: Products Comparison with Competitors
The products of agent banking of Bank Asia Ltd. are more attractive comparative to
others bank.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
1 1.7 1.7 1.7
Disagree 4 6.7 6.7 8.3
Neutral 10 16.7 16.7 25.0
Agree 27 45.0 45.0 70.0
Strongly
Agree
18 30.0 30.0 100.0
Total 60 100.0 100.0
Figures-9: Products Comparison with Competitors
Interpretation: From the above table and chart, it shows that 45 & 30 percent respondents
are respectively agree and strongly agree with The products of agent banking of Bank Asia
Ltd. are more attractive comparative to others bank.

Page | 42
4.1.8 Products Satisfaction
Table-12: Products Satisfaction
You are satisfied with the products and services of agent banking of Bank Asia Ltd.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
1 1.7 1.7 1.7
Disagree 4 6.7 6.7 8.3
Neutral 14 23.3 23.3 31.7
Agree 35 58.3 58.3 90.0
Strongly
Agree
6 10.0 10.0 100.0
Total 60 100.0 100.0
Figures-10: Products Satisfaction
Interpretation: From the above table and chart, we can see that 58.3 percent respondents are
agree to satisfaction about products which should be improved.

Page | 43
4.1.9 Service Cost
Table-13: Service Cost
The cost for the services of agent banking of Bank Asia Ltd. are reasonable.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
3 5.0 5.0 5.0
Disagree 20 33.3 33.3 38.3
Neutral 28 46.7 46.7 85.0
Agree 7 11.7 11.7 96.7
Strongly
Agree
2 3.3 3.3 100.0
Total 60 100.0 100.0
Figures-11: Service Cost
Interpretation: From the above table and chart, it shows that most of the respondents think
that the cost of the services is not reasonable.

Page | 44
4.1.10 Cost Comparison with Competitors
Table-14: Cost Comparison with Competitors
The cost of services of agent banking of Bank Asia Ltd. are lower comparative to
the other competitors.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Disagree 19 31.7 31.7 31.7
Neutral 25 41.7 41.7 73.3
Agree 15 25.0 25.0 98.3
Strongly
Agree
1 1.7 1.7 100.0
Total 60 100.0 100.0
Figures-12: Cost Comparison with Competitors
that the cost of services of Agent banking of Bank Asia is higher or same as others bank.

Page | 45
4.1.11 Hidden Charge
Table-15: Hidden Charge
There has no hidden charge of agent banking of Bank Asia Ltd.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
1 1.7 1.7 1.7
Disagree 1 1.7 1.7 3.3
Neutral 18 30.0 30.0 33.3
Agree 17 28.3 28.3 61.7
Strongly
Agree
23 38.3 38.3 100.0
Total 60 100.0 100.0
Figures-13: Hidden Charge
Interpretation: From the above table and chart, we can see that most of the respondents
thinks that Agent banking of Bank Asia has no hidden charge.

Page | 46
4.1.12 Proper Location
Table-16: Proper Location
The location of the agent point of agent banking of Bank Asia Ltd. are in proper
places.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
7 11.7 11.7 11.7
Disagree 16 26.7 26.7 38.3
Neutral 21 35.0 35.0 73.3
Agree 11 18.3 18.3 91.7
Strongly
Agree
5 8.3 8.3 100.0
Total 60 100.0 100.0
Figures-14: Proper Location
Interpretation: From the above table and chart, it shows that Most of the respondents are
thinking that the location of the agent’s points is not in proper places.

Page | 47
4.1.13 Agent Outlet in Market
Table-19: Agent Outlet in Market
Agent banking of Bank Asia Ltd. is needed to set up its agent outlet in the
market rather than Union Parishad.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Disagree 4 6.7 6.7 6.7
Neutral 10 16.7 16.7 23.3
Agree 19 31.7 31.7 55.0
Strongly
Agree
27 45.0 45.0 100.0
Total 60 100.0 100.0
Figures-15: Agent Outlet in Market
Interpretation: From the above table and chart, it shows that most of the respondents are
strongly agree with the statement that the agent outlet should be in the market rather than
Union Parishad.

Page | 48
4.1.14 Give Special Offers
Table-20: Give Special Offers
Agent banking of Bank Asia Ltd. gives special offers usually.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
8 13.3 13.3 13.3
Disagree 6 10.0 10.0 23.3
Neutral 31 51.7 51.7 75.0
Agree 15 25.0 25.0 100.0
Total 60 100.0 100.0
Figures-16: Give Special Offers
neutral in this statement which means that they can’t defined their position in this statement.

Page | 49
4.1.15 Promotion
Table-21: Promotion
The advertising and promotion of Agent banking of Bank Asia Ltd. is better than
the competitors.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
6 10.0 10.0 10.0
Disagree 12 20.0 20.0 30.0
Neutral 19 31.7 31.7 61.7
Agree 18 30.0 30.0 91.7
Strongly
Agree
5 8.3 8.3 100.0
Total 60 100.0 100.0
Figures-17: Promotion
Interpretation: From the above table and chart, it shows that most of the respondents thinks
that the promotion is not enough.

Page | 50
4.1.16 Accessibility
Table-20: Accessibility
The online system of Agent banking of Bank Asia Ltd. is easily accessible.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
2 3.3 3.3 3.3
Disagree 3 5.0 5.0 8.3
Neutral 10 16.7 16.7 25.0
Agree 19 31.7 31.7 56.7
Strongly
Agree
26 43.3 43.3 100.0
Total 60 100.0 100.0
Figures-18: Accessibility
agree with the statement that the system is easily accessible.

Page | 51
4.1.17 Transection Security
Table-21: Transection Security
The transaction system of Agent banking of Bank Asia Ltd. is very much
secured.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Neutral 18 30.0 30.0 30.0
Agree 24 40.0 40.0 70.0
Strongly
Agree
18 30.0 30.0 100.0
Total 60 100.0 100.0
Figures-19: Transection Security
agree with the statement that the transaction system is very much secured.

Page | 52
4.1.18 Brand value
Table-22: Brand value
The brand value of Agent banking of Bank Asia Ltd. is much better than the
competitors.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
2 3.3 3.3 3.3
Disagree 11 18.3 18.3 21.7
Neutral 17 28.3 28.3 50.0
Agree 30 50.0 50.0 100.0
Total 60 100.0 100.0
Figures-20: Brand value
Interpretation: From the above table and chart, we can see that 50 percent of the respondents
are agree with the statement that the brand value of Agent banking of Bank Asia is higher than
the competitors, others oppose.

Page | 53
4.1.19 Timely
Table-23: Timely
The service delivery time of Agent banking of Bank Asia Ltd. is very much
reasonable.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Strongly
Disagree
1 1.7 1.7 1.7
Disagree 4 6.7 6.7 8.3
Neutral 28 46.7 46.7 55.0
Agree 24 40.0 40.0 95.0
Strongly
Agree
3 5.0 5.0 100.0
Total 60 100.0 100.0
Figures-21: Timely
Interpretation: From the above table and chart, we can see that 40 and 5 percent of the
respondents respectively are agree and strongly agree with the statement that service delivery
time is reasonable but others oppose.

Page | 54
4.1.20 Officials
Table-24: Officials
The bank officers of Agent banking of Bank Asia Ltd. are very much helpful.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Disagree 1 1.7 1.7 1.7
Neutral 4 6.7 6.7 8.3
Agree 23 38.3 38.3 46.7
Strongly
Agree
32 53.3 53.3 100.0
Total 60 100.0 100.0
Figures-22: Officials
agree and strongly agree with the statement that the bank officers are very much helpful.

Page | 55
4.1.21 Agents Support
Figures-25: Agents Support
The agents of Agent banking of Bank Asia Ltd. are very much supportive and
transparent in banking transection.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Disagree 1 1.7 1.7 1.7
Neutral 10 16.7 16.7 18.3
Agree 26 43.3 43.3 61.7
Strongly
Agree
23 38.3 38.3 100.0
Total 60 100.0 100.0
Figures-23: Agents Support
that the agents are very much supportive and transparent in their banking transaction.

Page | 56
4.2.22 Prospects of Agent Banking
Table-26: Prospects of Agent Banking
Agent banking will run effectively and efficiently in future and the growth will be
high.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Neutral 6 10.0 10.0 10.0
Agree 30 50.0 50.0 60.0
Strongly
Agree
24 40.0 40.0 100.0
Total 60 100.0 100.0
Figures-24: Prospects of Agent Banking
Interpretation: From the above table and chart, it shows that 50 & 40 percent respondents
are respectively agree and strongly agree with the statement that the prospects of agent
banking in Bangladesh will be bright and the growth will be high.

Page | 57
4.2 KMO and Bartlett's Test
Table-27: KMO and Bartlett’s Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .785
Bartlett's Test of Sphericity
Approx. Chi-Square
530.85
9
df 136
Sig. .000
Source: Statistical Data Analysis
KMO test result is .785 (More than 0.70). So, collected data are suitable for factor analysis.
4.3 Rotated Component Matrix
Table-28: Rotated Component Matrix
Factors Description Factor Loading % of Variance
Factor 1
Reliability 34.799
Products Satisfaction .630
Hidden Charge .725
Agent Outlet In Market .804
Agents .734
Factor 2
Place and Promotion 13.921
Proper Location .863
Give Special Offers .820
Promotion .821
Factor 3
Products 8.068
Knowledge .502
Satisfactions about
Products Quantity
.815
Products Comparison with
Competitors
.427
Timely .663
Factor 4
Service 7.208
Service Cost .685
Accessibility .410
Brand value .813
Factor 5
Trustworthy 6.522
Cost Comparison with
Competitors
.802
Transection Security .305
Officials .324

Page | 58
Interpretation:
 Reliability (Factor 1) contained four statements/attributes and explained 34.799% of the
variance in the data and statements/attributes with factor loadings greater than 0.30. These
factors were Products Satisfaction, Hidden Charge, Agent Outlet in Market, Agents.
 Place and Promotion (Factor 2) accounted for 13.921% of the variance, and statements
with factor loadings greater than 0.30. This factor was loaded with three statements. These
were Proper Location, Give Special Offers, Promotion.
 Products (Factor 3) includes four statements and accounted for 8.068% of the variance,
statements with factor loadings greater than 0.30. These attributes were Knowledge,
Satisfactions about Products Quantity, Products Comparison with Competitors, Timely.
 Service (Factor 4) contained three statements and accounted for 7.208% the variance, and
statements with factor loadings greater than 0.30. These statements were Feel to be Service
Cost, Accessibility, Brand value.
 Trustworthy (Factor 5) include three statements and explained 6.522% of variance in the
data, and statements with factor loadings greater than 0.30. These statements were Cost
Comparison with Competitors, Transection Security, Officials.
4.4 Multiple Linear Regression Analysis
Multiple Linear Regression Analysis was performed to assess whether the identified
independent variables exerted a significant influence on dependent variable. To predict the
goodness-of-fit of the regression model, the correlation coefficient (R), t-value, standardized
coefficient (Beta), unstandardized coefficient (B) and F ratio were examined. The equation of
the conceptual model was expressed in the following:
Equation: Y = α + β1X1 + β2X2+ β3X3+ β4X4+ β5X5
Where, Y = Prospects of Agent Banking
X1 = Reliability
X2 = Place and Promotion
X3 = Products
X4 = Service
X5 = Trustworthy
And α is constant and β1, β2, β3, β4, and β5 are coefficient to estimate.

Page | 59
5.5 Model Summary
𝐻0: β =0
𝐻1: β ≠0
𝐻0: There is no Positive attitude towards agent banking in Bangladesh.
𝐻1: There is a Positive attitude towards agent banking in Bangladesh.
Table-29: Model Summary
Model Summary
Mode
l
R
R
Square
Adjusted R Square
Std. Error of the
Estimate
1 .581a
.337 .276 .549
a. Predictors: (Constant), Trustworthy, Service, Products, Place and
Promotion, Reliability
Interpretation: For the analysis of the data set SPSS 20 were used. The following results has
attained after inserting the multiple linear regression. R =.581 indicate the model is fit. In the
table, adjusted R-Square is showing that the Dependent variable (Prospects of Agent Banking)
is influenced 33.7 % by independent variables (Trustworthy, Service, Products, Place and
Promotion, and Reliability). Since R Square is .276. So the error of the estimation is .549.
4.6 ANOVA
Analysis of variance (ANOVA) is a collection of statistical models used in order to analyze
the differences between group means and their associated procedures. In its simplest form,
ANOVA provides a statistical test of whether or not the means of several groups are equal.
The ANOVA test is the initial step in identifying factors that are influencing a given data set.
Table-30: ANOVA
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 8.301 5 1.660 5.500 .000b
Residual 16.299 54 .302
Total 24.600 59
a. Dependent Variable: Agent banking will run effectively and efficiently in future
and the growth will be high.
b. Predictors: (Constant), Trustworthy, Service, Products, Place and Promotion,
Reliability

Page | 60
Interpretation: The ANOVA explained that overall model was significant. Here, the sig.
value is 0.000, which is less than 0.05, and indicates that the model is statistically significant.
It is clear that all the independent Variables (Trustworthy, Service, Products, Place and
Promotion, and Reliability) are connected to the dependent variable (Prospects of Agent
Banking). So, the model is fit for regression.
4.7 Coefficient of Variance
Table-31: Coefficient of Variance
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
1
(Constant) 4.300 .071 60.626 .000
Reliability .165 .072 .256 2.308 .025
Place and
Promotion
-.048 .072 -.075 -.673 .504
Products .186 .072 .289 2.607 .012
Service .089 .072 .138 1.244 .219
Trustworthy .262 .072 .405 3.657 .001
a. Dependent Variable: Agent banking will run effectively and efficiently in future and
the growth will be high.
So, Y = α + β1X1 + β2X2+ β3X3+ β4X4+ β5X5
= 4.3 + .165 (Reliability) −.048 (Place and Promotion) + .186 (Products)+ .089
(Service)+ .262 (Trustworthy)
Since significance value for Reliability is .025 which is less than 0.05, so there is less error on
this variable and positive relationship with dependent variable. Significance value for Place
and Promotion is .504 (More than .05), So this is a less significant variable which influence
the dependent variable negatively. Significance value for Products is less than 0.05, so there
is less error on this variable and positive relationship with dependent variable. Significance
value for service is .219 (More than 0.05), so it has less significance but has positive
relationship with dependent variable. Significance value for Trustworthy is less than 0.05, so
there is less error on this variable and positive relationship with dependent variable.

Page | 61
Among all variables, Trustworthy is the major variable with Unstandardized coefficient β1=
.262 that can contribute most to the prospects of Agent Banking in Bangladesh. All
independent variables have positive relation with dependent variable except the variable place
and promotion.
4.8 Findings of The Study
The major findings of the survey are given bellow:
 The male people are mostly use banking services comparative to females. According
to the profession, the businessman, service holders and students are the most users of
banking services.
 Most of the people are not aware of the products and services of agent banking of Bank
Asia Ltd. Most of them don’t know what agent banking is!
 Peoples think that the agent banking products are enough to satisfy their needs. Peoples
also thinks that the products of agent banking of Bank Asia Ltd. are more attractive
than the competitors. They are also satisfied with the services of agent banking of Bank
Asia Ltd.
 The cost of the services is not reasonable but comparative to others it is less than the
competitors. People believe that there is no hidden charge in Bank Asia’s agent
banking.
 The most negative thing is that the location is not in proper places. These should be in
market rather than in Union Parishad because most of the time the Union Parishad is
in a remote place where there is no market nearby. Reality says that these should be in
the market rather than Union Parishad.
 The advertising and promotion is not enough to reach people. They should give more
and more advertising in TV, Radio, Paper etc. to reach people more quickly. They
should take different promotional program to reach people vastly.
 The agent banking site is easily accessible and informative but the server is weak.
 The transaction system is very much secured because it uses fingerprint of both the
customer and agents in every transaction.
 The brand value of Bank Asia is not higher than the competitors but they agent banking
in Bangladesh for first time.
 It takes much time in the transaction for server problems, shortage of appropriate
knowledge about the activity, and sometime the less understanding power of the agents
etc.
 Peoples think that the bank officers and the agents are very much supportive and the
transparency in transaction of the agents are very much satisfactory.

Chapter Five
Recommendations & Conclusion

Agent Banking and Its Prospects in Bangladesh Recommendations & Conclusion
Page | 63
5.1 Recommendations
Agent Banking of Bank Asia is the pioneer of agent banking in Bangladesh. It starts agent
banking in Bangladesh with a pilot program in Munshigonj in 2014. So it is very much young
according to its age. So there are a lot of problems now. But Bank Asia is trying to decrease
the problems by upgrading the system day by day. The recommendations for them to
overcome the problems in Agent Banking are as follows:
 The agents of the agent banking of Bank Asia Ltd. should be given enough training to
learn the whole system of transection and activity.
 The Transaction limit should be enhanced to give banking facilities properly specially
for the business persons.
 The server of the bank should be made fast, so that they activity will be quickly done.
 They should request Bangladesh bank to sit with the mobile phone operator, Ministry
of ICT, and The Bangladesh Telegraph Telephone Board (BTTB) to enhance 3G
facility to the Union stage or provide broadband facility to the Union Parishad for
faster data transmission.
 The bank officers should be trained properly before sending them in the workplace.
 Bank should take advertising and promotion program to reach the people quickly and
largely, make them keeping faith and make them knowing about the products and
services of it.
 Bank should take those as agents who are at least graduate or have completed HSC.
 As the agents who run their business in Union Parishad remain too busy with the work
of Union Parishad, so they should not be taken as agents.
 In most cases the agents are not so much solvent to run the business, but it requires
much capital investment. So when taking any agent bank should justify his solvency.
 Bank should motivate agents about their (A) business. They should make understand
about their future in realistic way.
 Bank Asia should provide a minimum commission to the agents for account opening
or feeling up the account form. This will increase the interest of the agents about
opening of account.
 The most negative thing is that the location is not in proper places. These should be in
market rather than in Union Parishad because most of the time the Union Parishad is
in a remote place where there is no market nearby. Reality says that these should be in
the market rather than Union Parishad.
 Bank should take awareness program to reach the people and communicate them about
agent banking products and services.
 Bank should give special offers for the customers as well as the agents. This will
increase the interest of the customers as well as the agents.

Agent Banking and Its Prospects in Bangladesh Recommendations & Conclusion
Page | 64
 The service charge as account maintenance charge, charge of deposit and withdraw in
other agent outlet or branches, charge of EFTN, fund transfer etc. of banks should be
decreased.
 The branding elements should be reached immediately to the agents. Before branding
people can’t hold faith in it. They are in a confusion that their money might be theft.
5.2 Conclusion
Agent banking has a huge possibility in Bangladesh. Few banks are taking different initiatives
to make this service popular in Bangladesh. Banks like Bank Asia, NRBC Bank, Al-Arafah
Islami Bank, Dutch Bangla Bank, UCBL, Eastern Bank Limited, ONE Bank Limited, Farmers
Bank have already launched agent banking and many more are waiting to get clearance from
Bangladesh Bank. This service opens the separate epoch for accessible banks and financial
institutions. More and more people will use this service because of the convenience it will
provide to them in their daily life. Bangladesh bank has proper guideline and policies for agent
banking; now the banks have to be very vigilant employing those policies to make it the
biggest triumph story. As most of the people are living in the village so it has much scope to
take them into the banking system and prolong the banking business in Bangladesh. The
economy of the country will also have a positive impact through this.
Bank Asia is the pioneer in the agent banking in Bangladesh so it has much scope to capture
the whole market in a short time. It should overcome the major problems and take necessary
steps to catch the whole market. It has capability to be succeed in this sector.
In conclusion I must say that this report is really essential for every student of business studies
to get idea about Agent Banking sector of Banking in Bangladesh. By completing this report,
I have got overall idea of Agent Banking sector. Bank Asia was really a good experience for
me because every person of there were so much helpful. So, at last, there is a hope that the
growth of Agent Banking will be high, future will be bright and it will be much popular in a
very short time.

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Page | 66
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