The document provides a situation analysis of the fintech sector in Bangladesh, highlighting its strengths, weaknesses, opportunities, and threats (SWOT). Key strengths include strong R&D expertise, while weaknesses revolve around privacy concerns and high costs. Opportunities arise from government support and increasing internet access, but threats from cybercrime and competition loom large.

1. FinTech in Bangladesh
LinkedIn: Sabereen Faruque Safa

2. SITUATION ANALYSIS

3. Strength
Strong R&D expertise and team
Highly innovative
Digital Marketing Expertise
Success in Entering New Markets
Weakness
Privacy of Personal Information
High Cost Structure
Strong Existing Competitor
Opportunities
Central Bank promoting FinTech.
Declining Cost of Internet Services.
Increasing number of mobile and
smartphone users.
Develop new products for International
Markets.
Threats
Cybercrime potentially put the entire
Financial System in risk.
New startups focusing on product
launch rather than security measures.

4. Porter’s 5 Forces
Threat of New
Entrants
(Moderate)
Bargaining
Power of
Suppliers
(High)
Threat of
Substitute
Services
(Moderate)
Bargaining
Power of Buyers
(Moderate)
Competitive
Rivalry
(High)

5. PESTEL
P E
E
T
L
S
Political
Deduction of VAT by the government for the
mobile banking platforms.
Acceleration in the technological innovations of
DFS platforms due to government’s vision of
creating a “Digital Bangladesh”
Economic
Money transactions using MFS platform hit
55,059 crore BDT on February 2021.
Daily transactions between active MFS users
amounts to 1,786 crore BDT.
Legal
Issuances of “Guidelines if Mobile Financial
Services (MFS) for the banks” by Bangladesh
Bank in 2011, which was later revised in 2015.
Environmental
Organized largest medical intervention efforts by
handing 350 ventilators & more than 950,000
emergency medical kits in pandemic.
Social
MFS platforms provide a secured service at low
cost.
Number of users increased to 10.24 crore with
more than 3 crore active users.
Technological
Introduction of QR code based payment system.
Introduction of DFS lab, a joint venture of
Bangladesh Bank and a2i.
1 million USD support was sanctioned by the ICT
division of Bangladesh Government.

6. 6
COMPETITIVE MARKET ANALYSIS

7. 7
SWOT
Strength
Weakness
Opportunity
Threats
Positive brand image of UCBL.
Innovative technology – Block chain and
QR based.
Convenient mobile banking service.
Backed by Government ensures lesser
regulatory restrictions.
Less Cash-out charge than competitors.
NAGAD can independently provide
financial services.
Wide range of E-commerce
payment.
Exceptional branding & marketing
strategies.
Strong company culture
New in the industry.
Lower number of agents & merchants
compared to bKash.
Lack of awareness among users about
the new channel.
High service charge.
Limited monthly transactions.
Sudden server down.
New in the industry.
Lower number of customers.
Traditional mobile banking services
Acquiring more customers.
Innovative services.
Inclusion of lifestyle payment in
Traditional banking system.
NAGAD plans on transforming into a
digital bank.
Inclusion of lifestyle payment in
Traditional banking system.
Extensive mobile network coverage.
SME & Online businesses booming.
Globalizing.
Sudden change in government rules.
Fraud, hacking and abuse of system.
Cheaper rate of switching costs.
Fraud, hacking and abuse of
system.
Cheaper rate of switching costs.
Increasing number of competitors.
Changes in laws, circumstances and
taxation policies develop quickly.

8. Product Life Cycle of FinTech Companies
Growth Maturity Decline
Introduction

9. 9
COMPETITIVE STRATEGIES

10. 10
Target the Youth Market
Create a Freelancing Payment
Gateway

11. Introduction of the
“Micro-Loan System”
It will streamline the traditionally out-of-date and non-transparent lending processes.
Micro-Loan system will involve small loans to individuals.
Loan Limit: BDT 5,000
Repayment Time: 3 months.
Usual Charge for each repayment: BDT 5
Micro-Loan Repayment Penalty:
Extra cost for Cash out / send money to
compensate for the loan.
Loan penalty: BDT 15
1 week warning if unable to pay within 1
month

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