Cox’s Bazar – The Food and Agriculture Organization of the United Nations (FAO) and partners today launched agent banking which will support marginalized and ‘unbanked’ farmers to access financial services including deposits, savings, transfers, and loans.

Agent banking is when formal banks provide financial services through registered, non-bank agents, such as grocery shops, post offices, or pharmacies. The model has become much more popular in recent years, particularly in rural and poorer areas where banks are remote – precisely the places where farmers live.

Providing agent banking will boost the financial resilience of smallholders, enabling them to save, invest, and apply for micro-credit loans. This will increase efficiency, reduce poverty, and drive inclusive economic growth.

FAO is supporting the Department of Agricultural Extension (DAE), in partnership with e-Farmers Bangladesh and Bank Asia. The new banking service will be initially provided at Tulatoli Aggregation Centre in Ukhiya Upazila, Cox’s Bazar, where the launch ceremony took place, attended by government officials, farmers, and community leaders and members.

An aggregation centre is where farmers bring their produce for processing, storage, and to meet and negotiate prices with buyers. FAO has established a network of 20 aggregation centres in the region to link farmers with markets. Agent banking is the latest service to be added in the evolution of these centres.

FAO Representative Robert D. Simpson said: “Many farmers in Bangladesh are excluded from banking because they don’t live near a bank, can’t get to one easily, are illiterate, and may not even know how to use a mobile phone. Making banking services available to them will enable them to overcome these barriers so that they can build a financial foundation for long-term prosperity. This is a significant step towards realizing sustainable rural development."

Bank Asia introduced agent banking services in Bangladesh in 2014. e-Farmers Bangladesh is working to foster agri-entrepreneurs and integrate farmers with the e-market system.

Joy Galvez, Emergency Resilience Programme Coordinator at FAO’s office in Cox’s Bazar, said: “Agent banking is a game-changing approach that leverages technology to bring essential financial services closer to rural communities. Through this collaboration we look towards establishing a network of authorized agents across the region, bridging local farmers with the banking system.”

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