Kazi Nuzat Lamisa Anila, who works at Bangladesh Export Import Company Limited (BEXIMCO), has been using mobile banking services (MFS) for purchasing clothes and other essentials for the past five years.
Anila believes that MFS platforms are more efficient than cash payments.
“I do not like carrying cash because it is inconvenient. On the other hand, I have been using MFS for many years, which has made my life easier and more comfortable,” she told The Business Post.
MFS has rapidly gained traction in Bangladesh, with people from various professions using these services at different stages of their lives. Even farmers in villages can now receive money from the city through MFS providers such as bKash, Nagad, or Rocket.
Currently, 13 banks are offering MFS services, with bKash and Nagad leading the market. MFS transactions have been increasing each year.
The monthly average transaction for MFS stood at Tk 1,39,237 crore during January-March this year. In 2023, the average monthly transaction was Tk 1,12,745 crore. This amount was Tk 84,698 crore in 2022, Tk 64,179 crore in 2021, and Tk 46,802 crore in 2020.
These figures show that the monthly average transaction has nearly tripled in the last five years.
Tanvir A Mishuk, managing director of Nagad, said, “Nagad’s easy onboarding of customers, coupled with diversified products and services at affordable costs and simplified transaction processes, is contributing to the robust growth of the MFS industry. This is helping transactions keep pace with customers’ needs and changing the dynamics of the country’s financial ecosystem.”
The number of registered accounts on MFS platforms reached 224 million by March this year, with 130.3 million held by men and 93.3 million by women. However, the number of active accounts is 2.62 times less than registered accounts, standing at 85.3 million. There are 176.9 million agents across the country.
Statistics from Bangladesh Bank show that MFS is rapidly gaining popularity in Bangladesh, becoming a part of daily life. Various services, including daily shopping, bill payments for gas, electricity, water, and mobile recharge, are now available through MFS platforms. Salaries of drivers and maids in Dhaka and district cities are also being paid using services like bKash, Nagad, and Rocket. Labourers are sending money to villages through MFS as well.
The country witnessed the introduction of its first MFS, Rocket, by Dutch-Bangla Bank Limited in 2011. Subsequently, bKash launched its services as a subsidiary of BRAC Bank.
While many companies have since launched MFS platforms, only Nagad has significantly contributed to the market.
It recently received a licence from the central bank to become the country’s first full-fledged digital bank, paving the way for the nation to enter the world of digital banking.
