Mobile financial services and agent banking in Bangladesh

We are…
Name ID
01 S. M. Nuruzzaman 1367
02 Md. Naymur Rahman 1916
03 Keya Rahman 1915
04 Jafrin Akter Juthi 1331
05 Mahabub Mursheed 1365
06 Tahin Akter 1333
Dept. of Finance & Banking (6th
Batch), Jahangirnagar University

Our Presentation On
Mobile Financial Services and
Opportunities and
Challenges of Agent Banking
in Bangladesh

Mobile Financial Services
Mobile Financial Services (MFS) popularly
known as ‘Mobile Banking’ is a service
provided by a bank or other financial
institution that allows its customers to
conduct financial transactions remotely
using a mobile device such as a mobile
phone.

Mobile Financial Services (Contd.)
It includes:
 Disbursement of inward remittances,
 Financial transactions through agent/ bank branch/ ATM/ mobile operator
outlet,
 Payments of business organizations (such as utility bills) by individuals,
 Payment of individuals by business organization (such as salary
distribution)
 payment of individuals by government and Payments of government by
individuals
 individual to individual transactions etc.

Purpose Of Mobile Financial
Services
 To promote clear and rewarding consumer
experiences
 To establish an environment where MFS transactions
are authorized, secure, and compliant with applicable
laws and industry guidelines and
 To protect user privacy and financial data.

Status of Mobile Financial Services
in Bangladesh
SL Description Amount in July, 2018
1 No. of Banks currently providing the Services 18
2 No. of agents 840,196
3 No. of registered clients in Lac 640.49
4 No. of active accounts in Lac 305.78
5 No. of total transaction 192,464,578
6 Total transaction in taka(in crore BDT) 30,800.05
7 No. of daily average transaction 6,208,535
8 Average daily transaction (in crore BDT) 993.55

Services Provided By Mobile
Financial Services
Cash transfer service
Airtime top up
Salary payment
Payment collection
Merchant payment
Savings schemes etc.

Growth Of Mobile Financial
Services
 MFS is now early stage of development
 Providers are working to stabilize their technology, build
agent networks and acquire new customers.
 This involves finding and training agents, marketing, helping
customers transact and acquiring customers by using
know‐your‐customer (KYC) and account opening processes.
 New services are reaching multiple parts of Bangladesh and
that most clients and agents express cautious optimism
about mobile financial services being valuable to them.

Opportunities Of Mobile
Financial Services
Innovate new MFS products and services
Increase partnerships with MFI
Increase salary disbursement with less cost

Challenges Of Mobile Financial
Services
Fraud
Extortion and social crime
Challenges faced by customer

Guidelines Specific to Mobile
Banking and Mobile Payments
Authentication and Authorization
Banking and Payment Alerts; Transaction
Records
Limiting Liability for Unauthorized Transactions

General Guidelines
 Disclosure of Terms; Disclaimers
 Consent to Enrollment in MFS
 Compliance with Laws and Regulations
 Security of Data Transmissions
 Access Controls and Security of Sensitive
Information
 Fraud and Identity Theft Protection

Goals and Recommendations
Goals:
 MFS as a commercially viable, safe and competitive banking
channel
 Make more points of service available
 Lower costs across the banking system
 Potential to bring many un‐banked into the formal financial
sector
 Raises productivity across the banking system
 Wider economy

Goal and Recommendation
(Contd.)
Recommendations:
 It is critical that Bangladesh Bank remain firm and send a
consistent signal that the overall regulatory structure it chose
in 2011 will remain inpl
 Bangladesh Bank should actively promote greater
competition by facilitating entry of 2-4 additional serious
players.
 Bangladesh Bank should seek market feedback from the full
range of players in a systematic manner.

Agent Banking
Agent Banking means providing limited scale banking
and financial services to the underserved population
through engaged agents under a valid agency
agreement, rather than a teller/ cashier.
It is the owner of an outlet who conducts banking
transactions on behalf of a bank.

Agent Banking Opportunities In
Bangladesh
 Bangladesh has good mobile coverage, so data
connectivity is good
 Huge unbanked population
 Remittance receiving from outer countries is high
 Government has to disburse huge amount of fund
every year to the rural population
 Savings tendency of people

Challenges & Threats Of Agent
Banking In Bangladesh
 For banks, maintaining service quality is tough
 Insufficient volume of transactions
 Lack of customer awareness
 Power failure
 Cash carrying or management risk
 Physical and cyber security risk
 Infrastructure development and coverage
 Threat of robbery etc.

Mobile financial services and agent banking in Bangladesh

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