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Bangladesh mobile financial services 2016

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Total value of transactions exceeded USD 1.8 billion in Dec 2015

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Bangladesh mobile financial services 2016

  1. 1. 2016-01-25 | Page 1 Jan 2016 Bangladesh - Mobile financial services perspective
  2. 2. 2016-01-25 | Page 2 • Bangladesh – Macro view • Bangladesh - Financial System • Bangladesh - Mobile Network and Financial System • Summary Agenda
  3. 3. 2016-01-25 | Page 3 THIS IS Bangladesh THE World’s 44th largest economy ranked by World Bank Economic information (2015 est.) GDP Growth Rate (Last 10 Years) 6% - 7% Inflation Rate (Last 10 Years) 7% - 9% GDP Per Capita (Nominal) $1,314 GDP Total (Nominal) $205 Billion Total Land Area 147,610 km2 Total Population ~160 Million Source: World bank, Ministry of Planning of Bangladesh GDP
  4. 4. 2016-01-25 | Page 4 › ~47 million people are still below the poverty line—living on less than $2 per day. Bangladesh - Macro View Source: See Reference Slide
  5. 5. 2016-01-25 | Page 5 • Bangladesh – Macro view • Bangladesh - Financial System • Bangladesh - Mobile Network and Financial System • Summary agenda
  6. 6. 2016-01-25 | Page 6 Bangladesh - Financial System › Bangladesh financial system consist of 56 scheduled bank, 4 non-scheduled banks and 31 non-bank financial institutions Source: See Reference Slide
  7. 7. 2016-01-25 | Page 7 › 40% of adults have an account at a formal financial institution • The financial services sector in Bangladesh is dominated by commercial banks in terms of assets and liabilities. • However, in terms of reach, microfinance institutions have bigger networks Bangladesh - Financial System Source: See Reference Slide
  8. 8. 2016-01-25 | Page 8 • Bangladesh – Macro view • Bangladesh - Financial System • Bangladesh - Mobile Network and Financial System • References agenda
  9. 9. 2016-01-25 | Page 9 800MHz CDMA2000 1x RTT, EV-DO Rev A GSM 900/1800 GPRS/EDGE UMTS 2100 R99/HSPA/HSPA+ Prime players Secondary players Current WiMAX/LTE- TDD Operators (LTE Only) GSM 900/1800 UMTS 2100 GP, 42% BL, 25% Robi, 22% Airtel, 7% Others, 12% The Big 3’s Subscriptions Market Share 2015 132M Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  10. 10. 2016-01-25 | Page 10 › Bangladesh Central Bank has allowed 28 banks to offer MFS › 19 banks have started to work › 10 of them have gone operational. Bank-led Model Controlled by Bank and Teclos work as enabler. Exists in many countries More prudent, regulated and mature approach to banking Non-Bank model Controlled by operators Exists in few undeveloped countries Partially regulated Bangladesh - Mobile Network and Financial System Types of Mobile Financial System Source: See Reference Slide
  11. 11. 2016-01-25 | Page 11 › MFS products on the market - run by banks or their subsidiaries » bKash by BRAC Bank Limited » DBBL Mobile Banking by Dutch-Bangla Bank Limited » mCash by Islami Bank Bangladesh Limited » MYCash by Mercantile Bank Limited » UCash by United Commercial Bank Limited » IFIC Mobile Banking by IFIC Bank Limited » Trust Bank Mobile Money by Trust Bank » OK banking by ONE Bank Limited » FSIBL FirstPay SureCash by First Security Islami Bank Limited » Hello by Bank Asia Limited Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  12. 12. 2016-01-25 | Page 12 MFS in Bangladesh Bill Gates Becomes bKash’s Investor In terms of Active sub 80% › bKash dominates for more than half of the market Source: See Reference Slide
  13. 13. 2016-01-25 | Page 13 MFS in Bangladesh Total value of transactions exceeded USD 1.8 billion in Dec 2015 Total Transaction Value (per month) 2013 – Jun 2015 Million(USD) Sources: Analysis from Bangladesh Bank report $301 $862 $1,110 $1,361 $1,816 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Jan 13 Dec 13 Jun 14 Dec 14 Dec 15 Total Transaction (Value) Total Transaction Total Transaction (per month) 2013 – Jun 2015 10 32 44 75 83 0 10 20 30 40 50 60 70 80 90 Jan 13 Dec 13 Jun 14 Dec 14 Jun 15 Total transactions Total transactions Million(request)
  14. 14. 2016-01-25 | Page 14 MFS in Bangladesh The number of reported agents was 33 Million in Jun 2015 Total Registered Clients (Subscriber) 2013 – Jun 2015 Total Agents 2013 – Jun 2015 Million(Subscriptions) 5 13 16 25 33 0 5 10 15 20 25 30 35 Jan 13 Dec 13 Jun 14 Dec 14 Jun 15 Registered Clients Registered Clients 0.06 0.19 0.41 0.54 0.70 - 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 Jan 13 Dec 13 Jun 14 Dec 14 Jun 15 Agents Agents Million(Subscriptions) Sources: Analysis from Bangladesh Bank report
  15. 15. 2016-01-25 | Page 15 BD Mobile Network and Financial System- Competitive Landscape › As of December 2015, cash-in transactions totaled US$ 760 million, › cash-out transactions totaled US$ 669 million and P2P transaction accounted for US$ 339 million. » Most Popular transaction types are » Cash-in (42% of Total) » Cash-Out (37%) » Person-to-Person (P2P) (19%) » Others • Inward Remittance • B2P • P2B (Utility) Source: See Reference Slide 760.47 668.70 338.88 11.93 13.54 22.46 Cash-in Cash-out P2P B2P Utility(P2B) Others Transactions AS OF DECEMBER 2015 (in Million)
  16. 16. 2016-01-25 | Page 16 › Number of MFS agent is higher than number of bank branches Bangladesh - Mobile Network and Financial System Source: See Reference Slide MFS Agents 600K
  17. 17. 2016-01-25 | Page 17 › Customer Registration Process Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  18. 18. 2016-01-25 | Page 18 › CASH-in process at agent point Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  19. 19. 2016-01-25 | Page 19 › CASH-out process at agent point Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  20. 20. 2016-01-25 | Page 20 › PERSON TO PERSON (P2P) Transaction Bangladesh - Mobile Network and Financial System Source: See Reference Slide
  21. 21. 2016-01-25 | Page 21 › In OTC transaction, the sender and receiver are untraceable Bangladesh - Mobile Network and Financial System • Transactions that are completed with the assistance of an agent are called over the- counter (OTC) transactions. Source: See Reference Slide transaction is between two agents
  22. 22. 2016-01-25 | Page 22 › Regulator disallows pure OTC transactions between agents, but silent on partial OTC Bangladesh - Mobile Network and Financial System Source: See Reference Slide partial OTC transaction is between an agent and a customer
  23. 23. 2016-01-25 | Page 23 References  The study -- Agent Network Accelerator Survey -- was conducted by MicroSave with financial support from the Bill and Melinda Gates Foundation.  GSMA Intelligence Country overview: Bangladesh  What does the future of banking look like in Bangladesh ?  Bangladesh bank report  BTRC Monthly report

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