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Mobile banking revolution in bangladesh mr.shirin-driving economy


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Mobile banking revolution in bangladesh mr.shirin-driving economy

  1. 1. Financial Inclusion for the Unbanked Mobile Banking Revolution in Bangladesh Abul Kashem Md. Shirin Deputy Managing Director Dutch-Bangla Bank, Dhaka, Bangladesh
  2. 2. <ul><li>Total population: 150 m </li></ul><ul><li>Population having Bank account: 13% </li></ul><ul><li>Mobile phone users: 55% </li></ul><ul><li>No of Banks: 47 </li></ul><ul><li>No of Mobile Operators: 06 </li></ul><ul><li>No of Banks started Mobile Banking: 02 </li></ul><ul><li>No of Mobile Operators joined in Mobile Banking: 04 </li></ul>About Bangladesh
  3. 3. <ul><li>Starts operation: 1996 </li></ul><ul><li>No. of branches: 105 </li></ul><ul><li>No. of ATM: 1,800 </li></ul><ul><li>No. of POS terminals: 3,500 </li></ul><ul><li>No. of Customers: 2.0 m </li></ul><ul><li>No. of Debit Cards (Nexus non EMV </li></ul><ul><li>& EMV Master/Visa): 2.0 m </li></ul>About Dutch-Bangla bank
  4. 4. <ul><li>No. of Credit Cards </li></ul><ul><li>(EMV - Master/Visa): 30,000 </li></ul><ul><li>No. of Internet Banking customers: 72,000 </li></ul><ul><li>No. of sms banking customers: 95,000 </li></ul><ul><li>No. of Alert banking customers: 120,000 </li></ul><ul><li>No. of e-merchants connected to </li></ul><ul><li>DBBL payment gateway: 30 </li></ul>About Dutch-Bangla bank (Cont…)
  5. 5. <ul><li>Mainly to bring the rural unbanked into banking channel (financial inclusion) </li></ul><ul><ul><li>There is no bank in the remote rural area </li></ul></ul><ul><ul><li>Setup of Bank Branch in Rural area is not profitable </li></ul></ul><ul><ul><ul><li>Amount of deposit and loans in the rural area does not generate sufficient income to meet the expenses </li></ul></ul></ul><ul><ul><li>Setup of ATM in rural area is not feasible </li></ul></ul><ul><ul><ul><li>ATM requires regular cash feeding from a nearby branch </li></ul></ul></ul><ul><ul><ul><li>There is no branch in the rural area </li></ul></ul></ul><ul><ul><li>Only the Mobile Banking is the solution </li></ul></ul>Why Mobile Banking ?
  6. 6. For Bank:   i) Coverage of whole country with minimum cost ii) Increased number of customer iii) New source of deposit iv) New source of income Benefits of Mobile Banking
  7. 7. For the Customers:   i) Safe deposit of their money and also interest income on deposit ii) Transactions in the account on 7 X 24 basis iii) Truly on-line banking (anywhere, anytime) iv) Sending and receiving local remittance instantly v) Receiving foreign remittance from a walking distance Benefits of Mobile Banking (Cont..)
  8. 8. For the country:   i) Delivery of banking services to the rural people ii) Increase in money circulation iii) New employment iv) New source of income for the agents v) New source of income for the Mobile Operators vi) Quick and easy delivery of Government allowances like freedom fighters allowance, elderly allowance, salary of primary school teachers etc. Benefits of Mobile Banking (Cont…)
  9. 9. Mobile Banking Guideline of Bangladesh Bank
  10. 10. <ul><li>Disbursement of inward foreign remittances </li></ul><ul><li>Cash in /out </li></ul><ul><li>Person to Business Payments - e.g. utility bill & merchant payments </li></ul><ul><li>B2P e.g. salary disbursement, dividend and refund warrant payments, </li></ul><ul><li>G2P e.g. elderly & Freedom-fighter allowances </li></ul><ul><li>P2B e.g. tax, levy payments </li></ul><ul><li>P2P Payments. </li></ul><ul><li>Other payments like microfinance, OD facility, insurance premium, DPS, etc </li></ul>Mobile Financial Services that Banks can offer
  11. 11. Two Types of Mobile Financial Services: Bank-led model i) Bank is the custodian of each individual deposits ii) Bank is the custodian of customer’s financial and personal information iii) Bank is responsible for KYC of each of the account holder Non Bank-led model The non-bank-led model is where a bank does not come into the picture (except possibly as a safe-keeper of aggregated funds) and the non-bank (e.g. Telco) performs all the functions. Only Bank-led mobile banking model is allowed to operate in Bangladesh Mobile Banking Business Model allowed
  12. 12. <ul><li>At any point of time, the relevant balance in bank book shall be equal to the virtual balance of all registered mobile accounts shown in the system. Banks will be the custodian of individual customers' deposits. </li></ul><ul><li>Bangladesh Bank will fix the transaction limit as well as overall cap (per customer/ per month) as and when needed. </li></ul><ul><li>For these products and services Banks may fix up charges which will be under Bangladesh Bank oversight. </li></ul><ul><li>Banks shall pay interest/profit on the deposits lying with the customers’ mobile accounts. </li></ul><ul><li>Banks shall have to use a new 'Know Your Customer (KYC)’. The agents (?) will be responsible for authenticity of the KYC of all the customers. </li></ul>Banks to ensure the following:
  13. 13. The Honorable Governor of the Bangladesh Bank inaugurated the first mobile banking operation in Bangladesh (DBBL Mobile Banking) on 31 March, 2011
  14. 17. Mobile Banking Agents Banglalink Agent Citycell Agent
  15. 18. Mobile Banking Office and Agent DBBL MB Upazila Office Union Information & Service Centre
  16. 19. Customer/Employee Education and Awareness conducted by Banks Customer Awareness program
  17. 20. Dutch-Bangla Bank Mobile Banking Achievements
  18. 21. <ul><li>Telco Partners </li></ul><ul><li>(provides both the connectivity and the agents) </li></ul><ul><li>CityCell </li></ul><ul><li>Banglalink </li></ul><ul><li>AirTel </li></ul><ul><li>Other Agents (Provide only agents) </li></ul><ul><li>Union Information Service Center (UISC) under the Access to Information (A2I) project of the Prime Minister’s Office of Bangladesh </li></ul><ul><li>Sundorban Courier </li></ul>Dutch-Bangla Bank
  19. 22. Figure as of 30.11.2011 Coverage Districts : 25 out of 64 (rest by Feb, 2012) Upazilla : 182 out of 450 (rest by Feb, 2012) Acheivements Number Customer : 45,540 No. of TOTAL Agents : 911 Number of Citycell Agent : 486 Number of Banglalink Agent : 169 Number of Airtel Agent : 61 Number of UISC Agent : 181 Number of Sunderban Agent : 14 Dutch-Bangla Bank
  20. 23. Success Story – Dutch-Bangla Bank Mobile Banking
  21. 24. Success Stories
  22. 25. MMT Award to DBBL on 1 Nov, 2011 in Dubai
  23. 27. A few TVC
  24. 28. TVC-1
  25. 30. TVC-2
  26. 31. saif,mbd,dbbl
  27. 32. Thank You Options Clear [email_address] [email_address]
  28. 33. A few Mobile Banking screen captures
  29. 34. Customer Registration Options Clear Agent
  30. 35. Dial *322# Options Clear Agent
  31. 36. 1. Cash In 2. Cash Out 3. Registration 4. Balance 5. Statement 6. Change PIN 7. Logout Press ‘Reply’ & then select your option Reply Exit Agent
  32. 37. 3 Send Exit Agent
  33. 38. Enter Customer Mobile Number Reply Exit Agent
  34. 39. 01234567890 Send Exit Agent
  35. 40. Customer get IVR call requesting to enter 4 digit PIN Accept Exit Customer
  36. 41. An account has been created successfully. New account number is: 012345678901 1. Main menu 0. Logout Press ‘Reply’ & then select your option Reply Exit Agent
  37. 42. Your account has been created successfully. Your account no. is 012345678901 Please always remember your PIN and do not disclose to others. Reply Exit Customer
  38. 43. Process of Cash-Out
  39. 44. Cash-Out Options Clear Agent
  40. 45. Dial *322# Options Clear Agent
  41. 46. 1. Cash In 2. Cash Out 3. Registration 4. Balance 5. Statement 6. Change PIN 7. Logout Press ‘Reply’ & then select your option Reply Exit Agent
  42. 47. 2 Send Exit Agent
  43. 48. Enter Customer Mobile Account Number Reply Exit Agent
  44. 49. 012345678901 Send Exit Agent
  45. 50. Enter The Amount Reply Exit Agent
  46. 51. 100 Send Exit Agent
  47. 52. Customer get IVR call requesting to enter 4 digit PIN Options Clear Customer
  48. 53. Transaction has been completed successfully. 1. Main menu 0. Logout Press ‘Reply’ & then select your option Reply Exit Agent
  49. 54. Your account has been debited by Tk. 100 on 13-12-2011 at 10:16, Fee: Tk. 10, Bal: 4000, TxnID: 2356 Options Clear Customer
  50. 55. Your account has been successfully credited by Tk. 100, Bal: Tk. 7500. TxnID: 2356 Options Clear Agent