Bangladesh mobile financial services 2016

2016-01-25 |

Jan 2016

Bangladesh - Mobile

financial services

perspective

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• Bangladesh – Macro view

• Bangladesh - Financial System

• Bangladesh - Mobile Network and Financial System

• Summary

Agenda

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THIS IS Bangladesh THE World’s 44th largest economy ranked by World Bank

Economic information (2015 est.)

GDP Growth Rate (Last 10

Years) 6% - 7%

Inflation Rate (Last 10

Years) 7% - 9%

GDP Per Capita (Nominal) $1,314

GDP Total (Nominal) $205 Billion

Total Land Area 147,610 km2

Total Population ~160 Million Source: World bank， Ministry of Planning of Bangladesh

GDP

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› ~47 million people are still below the poverty line—living on less than $2 per day.

Bangladesh - Macro View

Source: See Reference Slide

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• Summary

agenda

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Bangladesh - Financial System

› Bangladesh financial system consist of 56 scheduled bank, 4 non-scheduled banks and 31 non-bank financial institutions


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› 40% of adults have an account at a formal financial institution

• The financial services sector in Bangladesh is dominated by

commercial banks in terms of assets and liabilities.

• However, in terms of reach, microfinance institutions have bigger

networks

Bangladesh - Financial System


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• References

agenda

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800MHz

CDMA2000

1x RTT, EV-DO

Rev A

GSM 900/1800

GPRS/EDGE

UMTS 2100

R99/HSPA/HSPA+

Prime players Secondary players

Current

WiMAX/LTE-

TDD

Operators

(LTE Only)

GSM 900/1800

UMTS 2100

GP, 42%

BL, 25%

Robi, 22%

Airtel, 7%

Others, 12%

The Big 3’s Subscriptions Market Share 2015

132M

Bangladesh - Mobile Network and Financial System


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› Bangladesh Central Bank has allowed 28 banks to offer MFS

› 19 banks have started to work

› 10 of them have gone operational.

Bank-led Model

Controlled by Bank and Teclos work as enabler.

Exists in many countries

More prudent, regulated and mature approach to banking

Non-Bank model

Controlled by operators

Exists in few undeveloped countries

Partially regulated


Types of

Mobile

Financial

System


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› MFS products on the market - run by banks or their subsidiaries

» bKash by BRAC Bank Limited

» DBBL Mobile Banking by Dutch-Bangla Bank Limited

» mCash by Islami Bank Bangladesh Limited

» MYCash by Mercantile Bank Limited

» UCash by United Commercial Bank Limited

» IFIC Mobile Banking by IFIC Bank Limited

» Trust Bank Mobile Money by Trust Bank

» OK banking by ONE Bank Limited

» FSIBL FirstPay SureCash by First Security Islami Bank Limited

» Hello by Bank Asia Limited



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MFS in Bangladesh Bill Gates Becomes bKash’s Investor

In terms of

Active sub 80%

› bKash dominates for more than half of the market


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MFS in Bangladesh Total value of transactions exceeded USD 1.8 billion in Dec 2015

Total Transaction Value (per month) 2013 – Jun 2015

Mill

ion

(U

SD)

Sources: Analysis from Bangladesh Bank report

$301

$862

$1,110

$1,361

$1,816

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Jan 13 Dec 13 Jun 14 Dec 14 Dec 15

Total Transaction (Value)

Total Transaction

Total Transaction (per month) 2013 – Jun 2015

10

32

44

75 83

0

10

20

30

40

50

60

70

80

90

Jan 13 Dec 13 Jun 14 Dec 14 Jun 15

Total transactions

Total transactions

Mill

ion

(re

qu

est

)

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MFS in Bangladesh The number of reported agents was 33 Million in Jun 2015

Total Registered Clients (Subscriber) 2013 – Jun 2015

Total Agents 2013 – Jun 2015

Mill

ion

(Su

bsc

rip

tio

ns)

5

13

16

25

33

0

5

10

15

20

25

30

35


Registered Clients

Registered Clients

0.06

0.19

0.41

0.54

0.70

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80


Agents

Agents

Mill

ion

(Su

bsc

rip

tio

ns)

Sources: Analysis from Bangladesh Bank report

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BD Mobile Network and Financial System- Competitive Landscape

› As of December 2015, cash-in transactions totaled US$ 760 million,

› cash-out transactions totaled US$ 669 million and P2P transaction accounted for US$ 339 million.

» Most Popular transaction types are

» Cash-in (42% of Total)

» Cash-Out (37%)

» Person-to-Person (P2P) (19%)

» Others

• Inward Remittance

• B2P

• P2B (Utility)


760.47

668.70

338.88

11.93

13.54

22.46

Cash-in

Cash-out

P2P

B2P

Utility(P2B)

Others

Transactions

AS OF DECEMBER 2015

(in Million)

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› Number of MFS agent is higher than number of bank branches



MFS

Agents 600K

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› Customer Registration Process



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› CASH-in process at agent point



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› CASH-out process at agent point



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› PERSON TO PERSON (P2P) Transaction



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› In OTC transaction, the sender and receiver are untraceable


• Transactions that are completed with the assistance of an agent are called over the- counter (OTC) transactions.


transaction

is between

two agents

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› Regulator disallows pure OTC transactions between agents, but silent on partial OTC



partial OTC transaction is between an agent and a

customer

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References

The study -- Agent Network Accelerator Survey -- was conducted by

MicroSave with financial support from the Bill and Melinda Gates

Foundation.

GSMA Intelligence Country overview: Bangladesh

What does the future of banking look like in Bangladesh ?

Bangladesh bank report

BTRC Monthly report

https://www.linkedin.com/pulse/what-does-future-banking-look-like-bangladesh-kh-m-moniruzzaman?trk=mp-reader-card

Bangladesh mobile financial services 2016

Economy & Finance

Transcript of Bangladesh mobile financial services 2016