Mobile banking of bkash in Bangladesh

09/26/14
Premier University
B.B.A
Semester :6th
Section “A”
22 Batch

Banking & Insurance
Assignment on: Mobile banking of bkash in Bangladesh
Submitted to
Lecture: Ms.Tasmia Tahlil
Department of Finance
Faculty of Business Administration
Premier University, Chittagong.
Group: B

Presentater Name & Id :
Name ID
1.Md. Ariful Islam Saimon Chy 1022114412
2.Md. Shahadat Hossain 1022114372
3.Rasheda Sharmin 1022114388
4.Md.Shazzad Hossain 1022114384
5.Imteaj Ibna Hossain 1021114362
6.Md. Rashed 1022114413
09/26/14

09/26/14
Mobile Banking
Mobile Banking also known as M-Banking or
SMS Banking is a term used for performing
balance check, account transactions, payments,
credit applications and other banking
transactions through a mobile device such as a
mobile phone.
bkash Limited, a subsidiary of BRAC Bank,
provide mobile banking facility.
Is a joint venture between BRAC Bank Limited,
Bangladesh, and Money in Motion LLC, USA.
The ultimate objective of bkash is to ensure
access to a broader range of financial services
for the people of Bangladesh.

Company Profile
Targeted Device :Basic /Feature Phone
Primary Delivery Technology : SMS/USSD
Products & Services : Payments
Markets Deployed In : Bangladesh
Estimated Number of Users : 2.2 Million
What is bkash?
Year Launched : 2011
Business Model : Consumer
B- Kash is the taster means to transfer money from one Place to another via mobile
phone and a simple secure and (convenient place to store money. Besides b- kash
can be used to make payments, pay bills, purchase items whether physical items
whether physical or electronic
. B- kash focuse lowest income people who are unknown to banking service those people
may not have higher education and which people live in rural are in Bangladesh .b-kasha
want provided banking services thus area are not coverage banking facilities for
participating economical development by all level of people

Workings of
bkash
bkash maintains a huge
network to provide its
services. A simple form
of the network is shown
below for illustration.

Mission of bkash
By providing financial services that are
convenient, affordable and reliable, bKash
aims to widen the net of financial inclusion.
bKash wants to provide a solution for Mobile
Financial Services, built on a highly scalable
Mobile Money platform, allowing the people
of Bangladesh to safely send and receive
money via mobile devices
By providing financial services that are
convenient, affordable and reliable, bKash
aims to widen the net of financial inclusion.
bKash wants to provide a solution for Mobile
Financial Services, built on a highly scalable
Mobile Money platform, allowing the people
of Bangladesh to safely send and receive
money via mobile devices

.
Objectives of the study :
Main objective of our study is to identify the role of bkash in
changing the life of people
 Supporting objectives are:
 Supporting objectives are:
 To know the repayment of using b- kash mobile banking .
 To know what are the services provided by b- kash & how it
serve its customer
To know what are the persons behind using bkash than other
monetary service available instead of.
To know what are the areas cover and or served by b- kash.
To know the customer contentment in using B- kash.
To know the framework of Bkash
To find opportunities for bkash.
 To know the repayment of using b- kash mobile banking .
 To know what are the services provided by b- kash & how it
serve its customer
To know what are the persons behind using bkash than other
monetary service available instead of.
To know what are the areas cover and or served by b- kash.
To know the customer contentment in using B- kash.
To know the framework of Bkash
To find opportunities for bkash.

The bkash served its services
within the boundary of
Bangladesh . Almost in every
districts are served by b- kash
though its huge network
consists of agents retailers etc.
There are many bkash centres
are available in Bangladesh .
A summary is given picture :
Bogra
Scope of the bkash

Mr.Shameran Abed
Director
Professor Dr. Jamilur Reza CAhoudhury
Director
Mr. Shib Narayan Kairy
Director
Nihad Kabir
Director
Mr. Iqbal Quadir
Director
Board of Directors
Mr. Muhammad A.(Rumee)Ali
Chairman

Services provided by
bbkkaasshh

Benefits of bkash
Fast Affordable
09/26/14
Nationwide
Secure Convenient

Terms and Definitions
Bkash Account – It's a virtual storage of money and can be accessed through
mobile phone.
After registration, one’s mobile number will be his/her bkash Account number.
Registration – Opening a bkash Account on one’s mobile phone.
bkash Mobile Menu – The menu one sees after dialing *247#
Cash In – Depositing money into one’s bkash Account.
Send Money – Transferring money from one bkash Account to another bkash
Account.
Cash Out – Withdrawing money from one’s bkash Account. One can Cash Out
from any bkash Agent Point or from BRAC Bank ATM.
Payment – When one pays from his/her bkash Account to a seller against product
or service s/he purchases

Terms and Definitions
My bkash – My bkash is an option on one’s bkash Mobile Menu from which one can check his/her account
balance, see mini statement, activate ATM Cash Out service and change your PINs .
bkash Mobile Menu PIN – This is a secret number like a password to secure one’s bkash Account.
bkash ATM PIN – This is also a secret number to be used when one cashes out from ATM.
Security Code – Security Code is a onetime PIN. When one cashes Out from ATM, one needs to
generate a Security Code which can be used only once and remains valid for one hour.
Transaction ID – A system generated unique reference number against each transaction that is
preserved as identification.
USSD Channel - Unstructured Supplementary Services Data Channel, a Gateway that routes USSD
messages from the signaling network to a service application and back. USSD messages travel over GSM
signaling channels and are used to query information and trigger services. Unlike similar services (SMS
and MMS), which are store and forward based, USSD establishes a real time session between mobile
handset and application handling the service.

HHooww t too o oppeenn a ann b bkkaasshh A Accccoouunntt
To open a bkash Account:
01. Go to any of your nearby bkash Agent along with -
a. Your mobile phone
b. A copy of your Photo ID (National ID/Passport/Driving License)
c. 2 copies of Passport size photographs
02. Fill out the Account Opening Form and put your thumb print and signature properly.
Please make sure that you have taken your copy (customer copy) from Agent and preserve
it for future reference.
After opening an Account, you need to activate your bkash Mobile Menu. Follow the
steps below to activate your mobile menu-
01. Go to bkash Mobile Menu by dialing *247#
02. Choose “Activate Mobile Menu”
03. Enter a new PIN for your bkash Account
04. Enter the PIN again to confirm
Done! You will receive a confirmation message from bkash. Please keep your PIN
secret all the times.

Other procedure
Use following steps to pay now:
You can make payments from your bkash Account to any “Merchant” who accepts “bkash
Payment”. For example, if you want to pay after shopping:
•Go to bkash Menu by dialing *247# ? Choose 'Payment' option by pressing '3'
•Enter our business wallet number : 01768700284
•Enter BDT. amount you have to pay : xxxx
•Enter a reference against your payment : xxxx
•Enter the counter number : 1
•Now enter your PIN to confirm: xxxx
•Done! You will get a confirmation SMS

Check Balance
You can check your bkash Account balance anytime you
want from the "Check Balance" option. To check your
current Account balance -
01. Go to your bkash Mobile Menu by dialing *247#
02. Choose “My bkash”
03. Choose “Check Balance”
04. Enter your Mobile Menu PIN
You will see the current and available balance of your
bkash Account.
Request Statement
To see a Mini Statement with details of your latest
transactions:
02. Choose “My bkash”
03. Choose “Request Statement”
04. Enter your Mobile Menu PIN

You will see the Change Mobile Menu PIN
For ensuring the security of your bkash Account, it is recommended that you change
your bkash Mobile Menu PIN when you feel that it may have been compromised. To
change the PIN:
02. Go to “My bkash”
03. Choose “Change Mobile Menu PIN”
04. Enter your “Old PIN”
05. Enter a new PIN to replace the old one
06. Enter the new PIN again to confirm
Activate ATM
To avail the bkash ATM Cash Out service, you need to activate this feature from your
bkash Mobile Menu. This is a onetime action. To activate the ATM Cash Out service:
01. Go to your “bkash Mobile Menu” by dialing *247#
03. Choose “Activate ATM”
04. Enter a new 5 digit PIN. This PIN will be your “bkash ATM Cash Out PIN” and is
better to make it different from your “Mobile Menu PIN”
05. Enter the PIN again to confirm
You will receive a confirmation message stating that you have successfully activated
ATM Cash Out service.
Change ATM PIN
For ensuring the security of your bkash ATM Cash Out PIN, it is recommended that you
change it when you feel that it may have been compromised. To change the PIN:
03. Choose “Change ATM PIN”
04. Enter your old PIN
05. Enter a new 5 digit PIN to replace the old one
06. Enter the new PIN again to confirm
You will see a confirmation on your mobile that you have successfully changed your old
PIN.

Cash In
To deposit money into your bkash Account:
01. Go to any bkash Agent
02. Let the Agent know the amount you want to Cash In
03. Write down your bkash Account Number and the Cash In amount in the Agent Register
04. Pay the amount of money you want to Cash In
05. In exchange, the Agent will send balance to your bkash Account. Cash In done!
You and the Agent will both get a confirmation message from bkash. Remember to sign the Agent Register before leaving the counter.
From Agent cash out
If you have sufficient balance in your bkash Account, you can withdraw cash anytime from any bkash Agent. To Cash Out from your bkash Account:
01. Go to any bkash Agent
02. Let the Agent know the amount you want to Cash Out
03. Write down your bkash Account Number and the amount in the Agent Register
04. Dial *247# on your mobile for the bkash Mobile Menu
05. Choose “Cash Out”
06. Choose “From Agent”
07. Enter Agent’s bkash Account Number (ask the Agent)
08. Enter the amount
09. Enter your bkash Mobile Menu PIN
Done! You and the Agent will both receive a confirmation message. Count the amount the Agent gives you to make sure it is correct and sign the Agent
Register before leaving the counter

Send Money
Send Money allows you to transfer money from your bkash Account to another bkash Account. To send money:
02. Choose “Send Money”
03. Enter the bkash Account Number you want to send money to
04. Enter the amount you want to send
05. Enter a reference about the transaction. (Do not use more than one word, avoid space or special
characters)
06. Now enter your bkash Mobile Menu PIN to confirm the transaction
Done! You and the Receiver both will receive a confirmation message from bkash.
Buy Airtime
Buy Airtime allows you to recharge Mobile Airtime from your bkash Account. You can buy airtime for your own
mobile phone or for someone else's mobile phone.
Follow the steps below –
2. Choose “Buy Airtime”
3. Choose your operator
4. Choose your connection type
5. Enter the 11 digit mobile number you want to buy airtime for
6. Enter the amount of airtime you want to buy
7. Enter your bkash Mobile Menu PIN to confirm
Done! You will receive a confirmation message from bkash.
Currently, this service is available for any bkash Account holder to Buy Airtime for Robi Prepaid numbers and all
Airtel numbers.

International Remittance
bkash brings you the easiest and most convenient way of sending and receiving International Remittance.
To send International Remittance from abroad to a bkash Account in Bangladesh:
• Go to a participating Exchange House branch
• Let the Agent know that you want to send money to Bangladesh through bkash
• Fill out the bkash related fields correctly on the remittance request form available at the Exchange House
• The Exchange House Agent will help you complete rest of the process
While sending remittance through bkash, please ensure that:
• Recipient’s number is a bkash Account number and belongs to one of the operators who is partnered with bkash (currently Robi, Grameenphone,
Banglalink or Airtel i.e. 018, 017, 019 or 016).
• The destination bkash Account number is entered as the 11 digit Bangladeshi mobile number starting with 018, 017, 019 or 016 e.g. 01XXXXXXXXX.
The international dialing and country code should not be included i.e. there is no “+88”.
• Recipient’s bkash Account number is correct.
• The number has been written clearly & accurately in the correct field.
• The BDT Value of sent remittance does not exceed bkash standard transaction limits.
Countries and Exchange Houses from which you can send Remittance to Bangladesh:
• UAE
- Al Rostamani International Exchange (ARIE)
- Al Ahalia Money Exchange Bureau
- Orient Exchange
• UK
- BRAC Saajan Exchange
Note: To find your nearest Exchange House branch, please click on the name of the respective participating Exchange House above.
To receive International Remittance on your bkash Account:
• To receive International Remittance through bkash, you first need to have a bkash Account. To open a bkash Account, go to your nearby
bkash Agent along with 2 copies of your Passport size photographs, a copy of your Photo ID (National ID/Passport/Driving License) and
your mobile phone (Robi/Grameenphone/Banglalink/Airtel).
• Communicate your bkash Account number to the sender. The sender will use this number for terminating the remittance amount.
• When the money reaches your bkash Account, you will receive a confirmation message on your mobile phone.
• No charge is applicable to receive International Remittance on your bkash Account. You have to pay bkash standard Cash Out Charge
only when you need to withdraw money from bkash Agent or BRAC Bank ATM.

Applicable Transaction Limits for sending/receiving
International Remittance through bkash:
Transaction Limits
Transaction Type Maximum Number of
Transactions
Amount Per Transaction Maximum Amount
Per Day Per Month Minimum (Tk) Maximum (Tk) Per Day (Tk) Per Month
(Tk)
Cash In 5 20 50 25,000 25,000 150,000
Send Money 20 70 10 10,000 10,000 25,000
Buy Airtime 50 1500 10 1,000 10,000 100,000
Payment No Limit No Limit 1 No Limit No Limit No Limit
Cash Out from
Agent
3 10 50 25,000 25,000 150,000
Cash Out from
ATM
3 10 2,000 20,000 25,000 150,000
International
Remittance
5 20 50 150,000 150,000 150,000
Tariff & Limits

Make payments at the following outlets using bkash.

Partners of bkash:
 Robi
 Grameenphone
 Banglalink
 Airtel
 BRAC
 Bill & Melinda Gates Foundation
Fundamo, a Visa company
09/26/14

Research on bkash Users
09/26/14
A study on 150 people shows the following result
According to Gender
Gender Frequency Percentage (%)
Male 90 60
Female 60 40
According to age
Age of the respondents No. of Respondents Percentage [%]
Below 25 years 30 20
25-30 years 50 33
30-35 years 40 27
35-40 years 15 10
40-50 years 9 6
Above 50 years 6 4
Total 150 100

09/26/14
According to area
Living area No. of Respondents No. of Respondents
Remote village 25 16.6
Advanced village 27 18
Modern village 55 36.6
Urban 43 28.7
Total 150 100
According to Education
Educational qualification No. of Respondents Percentage [%]
Up to primary 23 15
Above primary to
42 28
secondary
Above secondary to higher
secondary
31 21
Higher secondary to
graduation
44 29
Post graduation and above 11 7
Total 150 100

According to Occupational status
Occupational Status No. of Respondents Percentage [%]
Garments workers 60 40
Students 37 24.6
Government service holder 17 11.33
Private service holder 22 14.67
Business person 14 9.33
Total 150 100
According to personal opinion
Agreeable level of opinion No. of Respondents Percentage [%]
Strongly Agree 18 12
Agree 42 28
Neither Agree or Nor
33 22
Disagree
Disagree 40 26.7
Strongly Disagree 17 11.3
Total 150 100

Findings
Based on previous three
years transaction we
can show the growth
benefits reasons for
showing interest by
more people for using
bkash to faster receive
or store money
Years

bkash Vs. SMS Banking
SMS Banking bKash
Services are provided through SMS Services are provided through USSD menu
Very few services (mainly information) are
provided
Wide range of services
No Transaction can be made Transaction can be made
Bank account is required Bank account is not required
No agent involvement Agent involvement is present
Services includes: Services includes:
§Cash In
§ Instant Account Balance & Mini
§Cash Out Statement §Send Money
§ Fixed Deposit Maturity Alarm
§Payment
§ High Value Transaction Alert
§International Remittance
§ Account status change alert
§Check Balance
§ Welcome alert (for account opening)
§Request Statement
§ Payment (loan) failure alert § Change Mobile Menu PIN
§ Cheque clearing failure alert § Activate ATM

Challenges:
What are the internal and external challenges currently faced?
One of the core challenges stems from the perception of technology maintained by low income
users. For example, many users mistakenly think that they require advanced skill to use the
technology. A similar issue arises in that users often think that advanced English is required to use
bkash (although, in fact, very little English is required to use the service). bkash’s education
program seeks to overcome these issues, “our menu is so easy to use that, once a user becomes
familiar with the steps, she or he can opt for the required service by simply choosing a numerical
input and not have to respond with any text reply”. (the same point was mentioned earlier: seems
repeating) With a longstanding perception that “advanced and modern things” are not for them, low
income users are led to believe that they are dependent on others for receiving a service.
“Breaking this vicious cycle is one of the toughest parts of taking bkash to a level where physical
cash would be obsolete.”
Looking back, looking forward:
What key lessons have been learnt, and what are the organisation’s future objectives?
One important lesson is the difficulty experienced by low income users in activating features on
their phones. However, as phones reaching financially constrained audiences become cheaper,
internet-enabled, and have more intuitive features, bkash is optimistic that this area of difficulty will
improve. “This would increase the ease of accessing services on mobile phones and hence
increase mobile literacy.” bkash have also learned that human contact, one-to-one or one-to-many
education and training sessions, are essential components in their educational efforts. “When our
sales teams and agents interact with individuals and explain the service, users learn very quickly.”
Looking forward, bkash aims to keep contributing to the nation’s socio-economic development.
Fundamentally, this is facilitated by moving increasing numbers of people operating outside the
formal banking facility into an expanding financial system. bkash also makes further use of this
system: “All the little amounts can potentially add up to provide larger pools of capital to address
larger problems. The organization is putting all the little idle bits of capital to use to move the
country’s economy forward.
Problem Statement
Mobile banking is a totally new concept in Bangladesh. Although there are some banks that provide
m-banking service but services are different than bkash limited. bkash has some agents in different
location of the country but other bank’s has not agents. They only have ATM boot from where
customer can withdraw money.

Competitors
The main competitors of bkash limited are
Name of Competitors
Dutch Bangla bank
ltd
Mobi cash
Islami bank ltd M-cash
UCBL U-cash
They are also providing some facilities of mobile
banking for their customers. They are providing
09/26/14
different types of new offers to
improve their business.

Problems and Solutions of bkash limited
Now a day’s bkash limited has gotten a big popularity in Bangladesh. It is the
easiest way to sending and receiving money from any corner of the country to
another corner of the country. People can use it easily, so there are a few
problem people are facing for using bkash limited.
Problem No 1: No recovery system of Money:
People may make mistake to send their money by using their mobile phone, but there is no recovery
system to recover money from wrong number in bkash limited.
Causes of problems:
As bkash limited is a mobile based banking system, so there are so many causes for occurring this
problem.
a. Someone may input wrong amount of money for sending.
b. Customer may press wrong button of his mobile phone.
c. Customer may input wrong number for sending his/her money.
Problem No 2: Higher service charge
The service charge of bkash limited is higher than normal banking system. This problem is decreasing
intention of using bkash service to the customers.
Causes of higher service charge:
Sender has to pay a charge for sending money; receiver has to pay some charges also for collecting
money to bkash. On the other hand, receiver has to pay 5 tk commissions to the agents also. After
adding all charges the service charge gets higher

Problem No 4: Not Available agent
There are so many Mobile recharging shops in different location in Bangladesh. But everybody is not agents of
bkash limited. So, the number of agent of bkash limited is very few in the rural area or village area of different
district in Bangladesh.
Causes of the Problem:
Some retailers don’t want to take the risk of money for their clients. If the retailer makes the mistake for sending
money, he has to repay the money to the client because of no recovery systems in bkash limited.
On the other hand, agents get a small amount of commission from bkash limited.
Problem No 5: Less External Security
The external security of bkash limited is very lower than normal banking. In a normal bank, customer makes
their transactions after entering an ATM booth or into the bank office. So, bkash service is more risky than other
normal bank.
Causes for the problem:
Most of the shops of agent’s of bkash limited are in open places where people gather everyday. For example,
the shops are situated in a market which is the risky zone for money. Thief may attack the customers after
withdrawing money from bkash as the customers withdraw money in the public place and less external security.

Problem No. 5: Provided Poor service
Causes of the problem
Customer service center or touché point is not everywhere.
Hot line service process is lengthy and costly.
Request statement is not show all time. Air buy service is not available.
Solution of the problem
More customer touché points can improve customer service.
Technological improvement can meet the committed services more efficiently.
Problem No. 6:Agency’s Insufficient fund.
Challenges of the problem
Though bkash service is provided through agents so all the time they may not have available fund.
Solution of the problem
Appointing supervisor around the country to monitor fund availability can reduce this One of the core challenges
stems from the perception of technology maintained by low income user problem.
A similar issue arises in that users often think that advanced English is required to use bkash
With a longstanding perception that “advanced and modern things” are not for them, low income users are led to believe that
they are dependent on others for receiving a service.
Opportunities
It reaches almost every district in Bangladesh.
People have a good image about bkash.

Mobile banking of bkash in Bangladesh

Mobile banking of bkash in Bangladesh

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