BMBA

Developing an ‘Enabling regulatory framework’ for Bangladesh based MFS industry

An ‘enabling regulatory framework’ ensures the co-existence of MNOs (Mobile Network Operators) and FIs (Financial Institutions) in the MFS (Mobile Financial Service) value chain. Currently the MFS industry in Bangladesh is bank-driven or bank-led. bKash(a subsidiary of Brac Bank) dominates the MFS competitive space accounting for more than half of the market (58%) followed by DBBL with about one-sixth of subscribers (17%). The remaining eight providers with live services currently account for around a quarter of the total market [...]

August 11, 2017 By Articles, BMBA 0 Comments Read more...

Evolution of E-payment industry: Bangladesh Experience

Major MFS (Mobile financial Service) transactions encompass – Cash in transaction, Cash out transaction, P2P Transaction, Salary disbursement (B2P), Utility Bill Payment (P2B), Inward remittance and Others. MFS providers earn most of their revenue by performing three transactions – Cash in, Cash out and P2P. In 2014, these three Mobile financial services churned 98% of the industry e-payments; whereas in 2017 the contribution was around 96%. Cash-in transaction is the biggest mode of e-payment transactions, followed by cash-out transaction. P2P [...]

August 11, 2017 By BMBA 0 Comments Read more...

Risk in DFS (Digital Financial Service) framework

Low-income masses, micro-entrepreneurs and rural populations were previously left out of the financial market due to the high costs of physical expansion are now accessing financial services (payment, deposit mobilization) through mobile phones and networks of agents acting as representatives of financial service providers. This has resulted in a remarkably rapid increase in financial inclusion in countries. It is expected that the expansion of digital financial services will make an important contribution towards the goal of reaching universal financial [...]

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

MNO-led MFS Framework: Telenor’s Global Experience

At some part of world, regulations are very conducive towards ensuring an enabling regulatory framework for MFS providers. For Example, in Kenya, regulators have even allowed M-PESA (a MNO-led MFS model) to introduce formal banking (M-Kesho), micro-finance (musoni) and insurance products. In India, RBI has recently endorsed Airtel (an MNO) to leverage on its technological infrastructure; Airtel’s payment bank account holders will enjoy all traditional MFS services like cash-in, cash-out, P2P, P2B, B2P; most importantly they will earn hefty [...]

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

Potential scope for digitizing G2P transfer in Bangladesh

There is strong justification for the digitization of G2P payment (social safety net, salaries, pension and gratuities) in Bangladesh [one major recommendation prescribed under NSSS – National Social Security Strategy]. Currently, 145 social security programs are administered by 23 Ministries/Divisions in Bangladesh.   Name of SSP (Social Security Payment) Payment method % allocation of SS (Social Security) Budget Lifecycle staging Potential scope for digitizing G2P transfer Comment VGF (Vulnerable Group Feeding) 10 Kilogram rice per month 5.2%                     Food Transfer (Working Age) ✖ The first SSP (Social Security Payment) program initiated in [...]

July 24, 2017 By BMBA 0 Comments Read more...