2. Bangladesh
Demographics:
Population: 150 million
% below poverty line: 31.5%
% of Urban population: 27%
% under age 25: nearly 60%
Banking Infrastructure:
Bank Branches: 7,961
ATMs: 3,000 (approximate)
Bank Accounts: 55 million
Mobile subscription: 98.29 million
Mobile Banking:
Banks licensed by Bangladesh Bank: 10
Banks operating Mobile Banking: 5*
Mobile Account opened : 1.6 million (approximate)
Appointed agents: 36,000 (approximate)
* DBBL, BRAC(bKash), Trust, Prime, MBL
Source: Bangladesh Bank
3. Bangladesh telecom market
Telecom Industry Contributes ~ 6% GDP Growth
2012 (October) – Mobile Subscribers ~ 98.293 mn
2015 – Forecasts Mobile Subscriber ~ 194.990 mn representing a mobile penetration rate
of 110.59%, surpassing the 100% for the first time.
Industry’s average ARPU continue to foresee a downtrend due to intense competition and
aggressive pricing tactics from operators to gain market share.
Monthly APRU is < US$ 3…Lowest cost mobile phone service in the world. The fall in ARPU
relates to expectations that the prepaid subscriber base will continue to increase as a
proportion of the total, a trend that is encouraged by network expansion into rural
markets, where three-quarters of the population reside.
Annual Churn Rates are increasing.
Average Minutes Per User is declining.
Plans to transform Bangladesh into a digital country by 2021 are gaining traction after the
Bangladeshi government announced plans in September 2010 to implement seven
projects at a cost of BDT64.34bn (US$923.75mn).
The seven projects will focus on rolling out next-generation technologies such as
broadband wireless and fibre optic cable networks in order to improve Bangladesh's
inadequate broadband infrastructure.
Source: IBM
4. Bangladesh mobile banking market
DBBL bKash MBL Trust Bank Asia
Launch
Date
May,11 Jul’11 Feb’12 Aug’10 Mar’12
Customer 800,000 770,000 5,000 3,000 112
Agent 18,500 15,000 2,200 329 80
ATM 22,000 100 100 0 0
Branch 123 80 72 71 52
Merchant
point
0 23,000 0 0 0
Services •Cash in
•Cash Out
•P2P
•Top up
•F. Remittance
•Salary
•Donation
•BTS payment
• Merchant
payment
•Cash in
•Cash Out
•P2P
•University
payment
•Donation
•Merchant
payment
•Cash in
•Cash Out
•P2P
• DPS
•Cash in
•Cash Out
•P2P
•P2B
•B2P
•P2P
• G2P
• Major players are DBBL
and bKash. With highest
numbers of agent points
and customer base.
5. New Entrant
Islami Bank Bangladesh Limited (IBBL)
highest foreign remittance
carrier in BD
6. Islami Bank Bangladesh Limited
• Largest carrier of foreign remittance in Bangladesh ( around 30% of total foreign
remittance amounting upto USD 3.7 billion)
• Have the largest branch network (246 Branches & 30 SME/Krishi Branches i.e. total
276 Branches)
• Have 253 ATM booth
• Placed among Top 1,000 world banks 2012 list. UK based century old financial
magazine ‘The Banker’ published this list analyzing in depth-data & industry’s
performance.
• CRISL has reaffirmed the Long Term rating of Islami Bank Bangladesh Limited (IBBL)
to ‘AA+’(pronounced as Double A plus)
• Their core banking solution and mobile banking solution is developed in-house. So
they have the flexibility to design products and services more competitively than
other players such as bKash and DBBL.
7. SWOT analysis of
Islami Bank
Mobile Banking Strength
- 30% foreign remittance carrier
- Flexible in-house built system .
- IBBL own 8 million customer
base
- Own healthy distribution
channel
Weakness
- Late entrant
Opportunity
- Customer preliminary
education is done
- Government allowance
distribution
Threat
- In-house built system,
not tested yet
8. Product Line
Cash in
• Customer can deposit money to his wallet
Cash out
• Customer can withdraw money from his wallet through IBBL agent points,
Branches and ATM
Merchant Payment
• Customer can purchase from a merchant point and pay through their wallet
P2P
• Customer can transfer money from their own wallet to other account holders
wallet
Top up
• Customer can top up their prepaid and postpaid accounts thrugh their wallet
9. Business proposition
MNO IBBL
Platform
Retail channel
Training and education
Preserve customer right
Customer Service
USSD Channel
SMS gateway
Market communication
