2. MFS
user-
16.7
mn
Mobile User-
116.23 mn
Population - 160 mn
Only 14.37% of
telecom base
The huge mobile penetration makes
mobile banking as the biggest
alternative financial channel
Still there is a potential ready
base of 99.53 mn telecom
customers
3. Bangladesh Telecom Market Scenario
Telecom Subscription Scenario
(2014)
Active SIM Subscribers
Mobile Subscriber - 116.23 Mn
Mobile Penetration - 72%
Actual Mobile Users
Mobile Subscriber - 75.60 Mn
Mobile Penetration - 45%
Mobile Operators Market Share
(2014)
42%
26%
21%
7% 3% 1%
GP BL Robi Airtel Teletalk Citycell
35 Million Mobile Internet Subscribers
21% Internet Penetration
3
4. Barter
Coins
Paper
currency
Plastic
money
Mobile
money
Currency evolution
5. Mobile Banking Snapshot
(June 2014)
Bank with mobile banking license: 28
No of Bank launched the service : 20
No of agent: 0.41 million
No of customer: 16.7 million
Active customer: 6.7 million
Total number of transaction: 4.40 million
Total transaction in amount: BDT 8,52 billion (USD 11
billion)
Data Source: Bangladesh Bank
6. Transaction pattern
Cash out, 37%
Cash in, 43%
P2P, 17%
Salary, 1%
Utility, 2%
Others, 1%
After 3 years of evolution mobile banking in Bangladesh is still
concentrated on the money transfer part.
Still there is an opportunity of introducing new and innovative lifestyle
products
7. Important Facts
Yonger people have more
mobile banking accounts
12%
33% 55%
15-25 years
26-35 years
80% of the mobile
users are male
8. In a recent study while people
were asked “why do you use
mobile banking?”
95%
77%
66%
45%
53%
Easy procedure
Availability of Agent
Cost effective
Trustworthy
Instant
9. Strengths
-Mobile banking awareness is good
among customers
-Minimal cost of agent rollout
compared to bank branches
-Aligned with government agenda of
“Digital Bangladesh”
Weaknesses
-Security issues
-Multi partner model : Bank, telecom,
technology provider, distribution
partners
-Conservative approach by Banks
Opportunities
SWOT
-Huge unbanked population
-Merchant and corporate solution
-Online possibilities like buy and sell
- Lifestyle products
Threats
-Money laundering
-Fraud management
-Existing strong players
10. Regulation
From legal and regulatory perspective, only the bank-led model will be allowed to
operate
The guidelines shall apply to the scheduled commercial banks and their subsidiaries
operating in Bangladesh.
Commercial banks or their subsidiary may operate this service after getting approval from
Central bank
It is the bank’s responsibility to identify, contract, educate, equip and monitor activities of
the agents. Those who have country-wide branch network such as NGOs, the MNOs or
Govt. Postal Department may act as partner/agent.
One bank is allowed to tie up with as many other banks and as many MNO’s for the
convenience of the user. So an interoperability is allowed
The account will be termed as a “mobile account”
It is a non chequing, interest bearing account
The mobile account holder’s KYC is the bank’s liability and responsibility. The authenticity
of the KYC will be a joint responsibility of the bank and the cash point/agent
The relevant balance in bank book shall be equal to the virtual balance of all
registered mobile accounts shown in the system
The banks bear all the liabilities that arise from improper action on the part of their
subsidiaries/cash points/agents/partners
Banks shall be held responsible to protect consumer rights and dispute resolution.
11. Mobile banking services approved
by Bangladesh Bank
Disbursement of inward foreign remittances
Cash in/out using mobile account through agents/Bank
branches/ATMs/MNO’s outlets
P2B: Person to Business Payments (utility bill payments or merchant
payments)
B2P: Business to Person Payments (salary disbursement, dividend and
refund warrant payments, vendor payments)
G2P: Government to Person Payments (elderly allowances, freedom-fighter
allowances, subsidies)
P2G: Person to Government Payments (taxes, levy payments, police
fine)
P2P: Person to Person Payments P2P (One registered mobile account
to another registered mobile account)
Other Payments (microfinance, overdraft facility, insurance premiums,
deposit pension scheme deposits)
12. Top up
M-payment
Mcommerce
ecosystem
Ticketing
M-bill pay
M-salary
Promotional
Campaign
M-gifting
Government
payment
Inter
operability
Local
remittance
M-wallet
Loyalty
program
Insurance
International
remittance
Government
NGO
International
Remittance
House
Banks
Mobile
operator
Retail &
distribution
3rd party
platform
provider
Regulator
13. Top up
M-payment
Mcommerce
ecosystem
Ticketing
M-bill pay
M-salary
Promotional
Campaign
M-gifting
Government
payment
Inter
operability
Local
remittance
M-wallet
Loyalty
program
Insurance
International
remittance
Government
NGO
International
Remittance
House
Banks
Mobile
operator
Retail &
distribution
3rd party platform
provider
Regulator
