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Regulation in MFS industry is a must, but how much?

MNOs (mobile network operators) are better endowed to provide MFS (mobile financial service) than the case with majority of financial institutions. Strong technological infrastructure and widespread distribution network is integral to develop MFS eco-system. MNO’s distribution network is widespread at the root level, even at the remotest locality. Increased competition has forced private bankers to eventually opt out for retail banking; but a banker’s branch network is straightway no match with an MNO’s distribution network. MNOs also own the [...]

May 16, 2017 By BMBA 0 Comments Read more...

Policy prescriptions for Bangladesh MFS industry

Ensuring an enabling regulatory framework through an increased role of MNO in existing MFS value chain, promoting interoperability among MFS providers across tiers, replacing mono-led agents through collaborating with partners having established distribution networks, reducing the prevalence of OTC/ partial OTC transaction (carrier of digital Hundi) are the major policy prescriptions for developing a conducive eco-system of Bangladeshi MFS (mobile financial service) industry. MFS guideline as prescribed by Bangladesh Bank already accommodates this sort of equity partnership upto 30% (under [...]

April 22, 2017 By BMBA 0 Comments Read more...

Rocket: A test case for financial inclusion

Access to quality payment service is a basic human right and now considered as a nascent step towards financial inclusion. Broadening up the financial inclusion base is certainly becoming a macro-economic priority across the globe, but it needs huge investment in MFS platform and value chain. Like any other key stakeholders of the financial system, commercial banks also cherish financial inclusion, but does that necessarily mean banks should invest huge fortune just out of corporate philanthropy or social CSR? [...]

April 12, 2017 By BMBA 0 Comments Read more...

Is multi-bank MFS consortium the ultimate future?

MFS (Mobile Financial Service) guideline prescribed by Bangladesh Bank clearly states that Mobile phone based Financial Services in Bangladesh has to be conducted thorough scheduled commercial bank led platform. So, under the existing regulatory eco-system, formation of an MNO-driven or payment company-led MFS platform is not possible. But have this guideline necessarily opted out for standalone, tinsel mono-bank-led MFS platforms? The answer is very straight; No. The regulator is actually concerned about interoperability possibility and commercial viability of numerous small [...]

April 4, 2017 By BMBA 0 Comments Read more...

bKash – Opportunities and challenges

bKash is the first MFS provider to attain economies of scale in Bangladesh (basically a Type I market – low income, low banking rate). bKash has been the first MFS provider in reaching out the under-banked and unbanked segment of Bangladeshi population at a very cheap, convenient and reliable way. bKash’s value proposition is simple: a safe, convenient place to store money; a safe, easy way to make payments and money transfers. Through cutting off agent’s chores and by enhancing [...]

March 29, 2017 By BMBA 0 Comments Read more...