Mobile money service launched in Bangladesh
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Financial inclusion in Bangladesh just took a stride closer to reality with the launch of a new international remittance receiving service via a partnership between MasterCard, Western Union, bKash and BRAC Bank.
The new service enables bKash’s registered customers to use their mobile phones to receive remittances from abroad directly into their bKash accounts.
A subsidiary of BRAC Bank and a joint venture between BRAC Bank and Money in Motion LLC of USA, bkash serves the low income masses of Bangladesh to achieve broader financial inclusion by providing services that are convenient, affordable and reliable.
With 70% of the population living in rural Bangladesh many of whom have no access to formal financial services, it is also the eight largest receiver of international remittances in the world. Under 15% of Bangladeshis are connected to the prescribed banking system whereas over 68% have mobile phones.
World Bank South Asia Financial Inclusion Index 2014These phones are not only devices for talking, but can be used for more useful and difficult processing tasks. bKash was conceived primarily to use these mobile devices and the universal telecom networks to extend financial services in a protected manner to the under-served distant population of Bangladesh.
“Under 15% of Bangladeshis are connected to the prescribed banking system whereas over 68% have mobile phones.”
By using the new service, bKash’s registered customers can receive remittances from every Western Union send market and channel directly into their bKash account, 24 hours a day.
MasterCard’s Matthew Driver said: “This relationship is another step towards achieving our global commitment to make the financial system accessible to 500 million more people by 2020. Working with companies such as bKash and Western Union is crucial to taking advantage of the latest technology; digitizing money transfers and supporting financial inclusion efforts in the South Asia region and worldwide. The choice, flexibility and convenience of this new bKash service will help to expand financial inclusion to some of the most remote parts of this thriving nation.”
Western Union’s Jean Claude Farah said international money transfers over mobile phones will accelerate financial inclusion in Bangladesh where there are currently more mobile phones than there are customers with bank accounts.
In 2011, the Bangladesh Bank, the country’s central bank, issued the Mobile Financial Services (MFS) Guidelines and mandated that the model where MFS must be bank-led but also clearly indicated that partnerships with mobile operators must be forged to reach customers. The first two MFS providers to emerged as leaders early on were BRAC/bKash and Dutch Bangla-Bank/DBBL.
Like many parts of developing Asia, financial inclusion is part of the government via the central bank’s strategic plan, aimed at ensuring these products meet the needs of the traditionally underserved segments of society. Among the services on priority list include expanding access to financial services to women, poor and rural populations; and formalizing financial services by promoting registered transactions.
Questions & Answers
Q.What is the primary objective of bKash in Bangladesh?
What is the primary objective of bKash in Bangladesh?
bKash aims to provide convenient, affordable, and reliable financial services to the low-income masses of Bangladesh. Its goal is to achieve broader financial inclusion, especially for the under-served distant population using mobile devices and telecom networks.
Q.How will this new service facilitate international remittances for bKash customers?
How will this new service facilitate international remittances for bKash customers?
Registered bKash customers can now receive remittances from any Western Union send market directly into their bKash accounts using their mobile phones. This service is available 24 hours a day, offering choice, flexibility, and convenience.
Q.Why is Bangladesh considered a key market for this type of mobile money service?
Why is Bangladesh considered a key market for this type of mobile money service?
Bangladesh is the eighth largest receiver of international remittances globally, with 70% of its population in rural areas lacking formal financial services. Over 68% of Bangladeshis have mobile phones, but under 15% use prescribed banking systems, making mobile money a vital tool.
Q.Which entities collaborated to launch this new international remittance service?
Which entities collaborated to launch this new international remittance service?
The new international remittance receiving service was launched through a partnership between MasterCard, Western Union, bKash, and BRAC Bank. This collaboration digitises money transfers and supports financial inclusion efforts in the region.
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