Presentation on "remittance" of dhaka bank ltd


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this presentation was done by me and my friend on "remittance issue of Bangladesh: and the contemporary features, facilities, procedure and performance of Dhaka Bank LTD in Bangladesh. for the sake of simplicity whole issue is divided into 2 groups-
1. overall remittance situation and overview in BD
2. process, performance, facilities etc. of remittance provided by Dhaka Bank LTD.
thank U.

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Presentation on "remittance" of dhaka bank ltd

  1. 1. TOPICS OF PRESENTATIONOVERVIEW OF REMITTANCE MARKETPROCESS, PERFORMANCE & FACILITIES THUSOVERALL REMITTANCE ACTIVITY OF DHAKABANK . Remittance scenario of Dhaka bank Ltd. Remittance performance of Dhaka bank Ltd. Mobile remittance. Service profile. Facilities provided by mobile remittance. Operational procedure. M-wallet registration and transaction . Mobile remittance accounting process. Mobile wallet process. Bangladesh bank policies. Finishing with a prospective scenario ofremittance.Landscape of remittance in Bangladesh.Key source countries for remittance.Reasons for growth in remittance.Roadblocks in current remittanceprocess.Current market scenario and marketplayers.
  2. 2.  A key driver of economicgrowth and povertyreduction inBangladesh, increasing at anaverage annual rate of 19percent in the last 30 years(1979-2008). Bangladesh was the seventhlargest remittance earner inFY 2010-11. The semi -skilled orunskilled workers are themain source of obtainingmore remittance inflow inthe country.Figure 1: Remittance and number of migrated peopleLandscape Of Remittance In Bangladesh.
  3. 3. Key Source Countries For Remittance In the FY 2011-2012, the highest remittance receivedwas from Saudi Arabia. (29 percent) The second highest remittance was received fromU.A.E (18.65 percent). The share of Europe in receiving total remittances isonly about 8 percent, where most remittanceswere from the United Kingdom and Germany. Data trend shows that remittance might reducefurther by the end of this current fiscal year. According to Bangladesh Association of InternationalRecruiting Agencies (BAIRA), over 80,000Bangladeshis worked in Libya. The recent crisis in Libyahas forced to quit many of the Bangladeshi workersfrom strife-torn Libya.Figure 2: Share Of Remittance From Different Countries
  4. 4. Reasons For Growth In Remittance• Stable macro-economic indicators including GDP growth.• Steady growth in manpower export specially in the middle east.• Substantial devaluation of the local currency.• Rapid urbanization.• Development of new remittance corridors in Australia and part of Europe.• Increased focus of Central Bank and the Government to channel funds throughformal channels.• Increased competition among financial institution to grab market share.• Aggressive marketing policy adopted by Banks to increase their share of wallet.• MFIs involvement in channeling remittance funds in remote areas.• Participation in the UN peace keeping missions.• Anti-Money Laundering rules and regulations coming in force.
  5. 5. Roadblocks In Current Remittance ProcessMajor roadblocks of a smooth and efficient payment offoreign remittances are as follows : Poor infrastructure in rural and semi-urban economy Inadequate reach of private commercial banks withinthe country Massive information asymmetry in the market Active ‘Hundi’ market Inefficiency of financial institutions Poorly regulated exchange houses Low literacy rate in the country Uneven competition among financial institutions Lack of investment in IT backbone development formarket efficiencyThese inefficiencies are resultingin because of high share of ‘Hundi’.At present, the share of ‘Hundi’business constitutes roughly 40% oftotal incoming foreign remittances.
  6. 6. Current Market Situation And Market PlayersPositive• The market has experienced a palmy growth inrecent years due to the current global economicrecession which drove the demand of the low costlabor of Bangladeshi expatriates residing invarious countries of the world.VSNegative• Because of growing global economy, the demandfor specialized and skilled labor force arerestraining the demand for low cost laborMARKET PLAYERS• State Commercial Banks (SCBs) and the1st generation Private Commercial Banks(PCBs) have captured the greater share ofthe market due to their-1. long time operation in the countryand2. nationwide branch coverageMarket Share in the SCBs & Specialized BanksSonali BankAgrani BankJanata BankBKBRupali BankMarket Share in PCBsIslami BankNational BankBRAC BankUttara BankSouth East BankPubali BankPrime BankOthers
  7. 7. Remittance Scenario Of Dhaka Bank LtdRemittance Performance Of DhakaBank Limited: Starting from 2004, DB is continuingits remittance business under GeneralTrade Services (GTS) which already hassuccessfully strengthened the remittancedisbursement network by including2,222 telecom point locations in itsexisting network. DBL has partnered with 18 exchangehouses worldwide to facilitateremittance inflow The bank currently has an astoundingnetwork of 4,915 remittancedisbursement locations nationwideThe bank, through GTS, hasestablished agreement with other NCBs. Moreover, it has entered into theEldorado, an elite network of 12PCBs, for inland fund transfer anddisbursement.Dhaka Bank is one of the pioneers in Mobile Remittance inBangladesh.The Bank has channelized USD.113 million and USD 117million in the year 2009 and 2010 respectively with a GrowthRate Of 3.54%Particulars 2009 2010 Growth Market GrowthRemittance Inflow (Amount in Million USD) 113 117 3.54% 2.06%No. of Account Credit Transaction 78923 72665 -7.92% NANo. of Cash Payout ( Apprx.) 19200 44400 131.25% NA
  8. 8. Mobile Remittance[in collaboration with orascom telecom] DBL has introduced Mobile Phone based Remittance PaymentSystem for the first time in BD which makes it more easy for BDpeople.Under this system, beneficiaries will be able to enjoy 2 types ofservice—1. M-Wallet Account (Only for Banglalink users)2. Coupon Payment (Cash Payout)A Hassle Free, Quick And EfficientSettlement Of Remittance ForThe Rural People
  9. 9. Service ProfileDhaka Bank Mobile Remittance provides servicein 2 facets1. M-Wallet Account:A virtual account opened and maintainedin Dhaka Bank system with assistance fromBanglalink server.Receiver receives his/her remittancedirectly in the M-Wallet account.The process is finishe by receiver’sencashing of the remittance accordingher/his need. the receiver has the leeway to partiallyreimburse the remittance in the any 2,222Bank accredited Banglalink cash point.2. Coupon Payment:The only difference in this case isbeneficiary receives the amount from a Bankaccredited Banglalink cash point instead ofbank branch or partner NGO branch.beneficiary provides the PIN (secretnumber) to the Banglalink agent along withother required information.Agent then checks the PIN and matchesthe information in Dhaka Bank server (routedthrough Banglalink server) with the help ofhis mobile phone.Banglalink agents disburse the remittance.
  10. 10. Facilities Provided By Mobile RemittanceFor the Beneficiary For The Correspondent Augmentation of the number of payment locations to 2,222that literally covers the remotest location of the country (currently786 locations are in operation and 442 more locations are ready foroperation). Faster disbursement of foreign remittance that will enable abeneficiary to receive his/her fund within 2 (two) hours of receivingthe instruction from correspondent. An extended remittance receiving hour from 9 AM to 6 PMfor the beneficiaries. Introduction of remittance defrayment in the weekends asthe Telecom outlets are open 365 days a year. Option for beneficiary to open a Mobile Wallet account withthe bank and receive his/her fund in his/her Mobile Wallet accountthat facilitates partial encashment of the remittance. Escalated Customer Service through well-trained customercare executive of Orascom Telecom (Banglalink). 24-7 Call Centre support from the telecom•Quicker and faster processing of the instructions andUniqueness of the service will result in more business forthe correspondents.•Multiple payment instructions sending facility in a day asthe system will be updated every 2-hour.
  11. 11. Operational Procedure
  12. 12. M-wallet Registration And Transaction
  13. 13. Mobile remittance accounting process
  14. 14. Mobile Wallet Process
  15. 15. Bangladesh Bank Policies BL (Banglalink) Collection A/C is a non-cheque account and funds from thisaccount cannot be withdrawn by BL. Cash-outs can only be made by DBL to BLafter having ‘Successful Transaction’ status sent by BL. BL will have to maintain the settlement A/C with DBL at all times during thetenure of the agreement even if BL offers this same service to other institutions
  16. 16. Finishing With A Prospective Scenario Of RemittanceUnder the business as usual scenario,remittance might stand at USD 12880.05million in FY 2012-13.Figure 6:Future scenario of Remittance