Future of Mobile Financial Service
A conversation with Sheikh Aminur Rahman, CMO, Nagad Ltd about the future of mobile financial services in Bangladesh
Tell us about the present MFS market in Bangladesh?
Yes, Mobile Financial Services (MFS) has made a significant contribution to Bangladesh's economic progress over the last decade. According to Bangladesh Bank, the country currently has over 100 million MFS account holders. More than 55 million Nagad consumers have also been added to the list. According to the Bangladesh Bank, more than Tk 2,000 crore is transacted through MFS every day on average.
Besides there was a monopoly in the MFS market since the beginning. Specially one things, I would like to tell you about Nagad. Here Nagad is the arm of Bangladesh Postal Department has successfully broken the monopoly of the market also Nagad is the cheapest MFS provider of the country.
How Nagad maintain sustainable growth?
Since the inception, for the first time in Bangladesh, Nagad started an account opening process through the Electronic Know Your Customer (EKYC) registration process. Through this process, customers were able to easily open an account through their Nagad app by taking a picture of themselves through the front camera and pictures of their national identity cards. Hence, the innovation reduced customers' hassle and they were able to save a lot of valuable time and money.
Performance of Nagad comparing to market competitors.
Since the beginning, Nagad has been offering the best services to ensure the economic emancipation of the general people in this country. The service has come up with state-of-the-art facilities to make people's lives easier. Nagad's easy account opening process has revolutionized the MFS industry which helped people to include them in the national economy. As a result, Nagad sees a huge response in terms of the daily transaction (BDT 750 Crore) and adding thousands of new accounts daily.
Future planning of Nagad, upcoming feature.
When Nagad began its journey as an MFS provider on Independence Day in 2019, around 35 percent of the country's population used formal channels for cash transactions because of the complex procedures for opening bank accounts and maintaining the accounts for the poor state of financial inclusion in the country.
Besides, Nagad introduced an easy method of opening MFS accounts, which worked well and the popularity of Nagad grew fast, with the country's overall formal transactions jumping to 42 percent from 35 percent in just eight months.