Mcommerce opportunity in bangladesh (mobile banking, next big thing)
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Transcript of Mcommerce opportunity in bangladesh (mobile banking, next big thing)
Mobile Banking in BangladeshThe Next Big Thing
Population - 160 mn
Mobile User-116.23 mn
MFS user-16.7 mn
The huge mobile penetration makes mobile banking as the biggest alternative financial channel
Only 14.37% of telecom
base
Still there is a potential ready base of 99.53 mn
telecom customers
Active SIM Subscribers
Mobile Subscriber - 116.23 Mn Mobile Penetration - 72%
Actual Mobile Users
Mobile Subscriber - 75.60 MnMobile Penetration - 45%
Telecom Subscription Scenario (2014)
Mobile Operators Market Share (2014)
Bangladesh Telecom Market Scenario
42%
26%
21%
7%3% 1%
GP BL Robi Airtel Teletalk Citycell
35 Million Mobile Internet Subscribers
21% Internet Penetration
3
Barter
Coins
Paper currency
Plastic money
Mobile money
Currency evolution
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
Transaction pattern
Cash in; 43%
Cash out; 37%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
Important Facts
55%33%
12%
Yonger people have more mobile banking
accounts
15-25 years26-35 yearsOver 35 years
80% of the mobile users are male
In a recent study while people were asked “why do you use mobile banking?”
95%
77%
66%
53%
45% Easy procedure
Availability of Agent
Cost effective
Trustworthy
Instant
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-Huge unbanked population-Merchant and corporate solution-Online possibilities like buy and sell- Lifestyle products
Threats-Money laundering-Fraud management-Existing strong players
SWOT
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.
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)
Mcommerce ecosystem
Top up
M-payment
Ticketing
M-bill pay
M-salary
Promotional Campaign
M-giftingGovernment
payment
Inter operability
Insurance
Loyalty program
M-wallet
Local remittance
International remittance
Government
NGO
International Remittance
House
Banks
Mobile operator
Retail & distribution
3rd party platform provider
Regulator
Mcommerce ecosystem
Top up
M-payment
Ticketing
M-bill pay
M-salary
Promotional Campaign
M-giftingGovernment
payment
Inter operability
Insurance
Loyalty program
M-wallet
Local remittance
International remittance
Government
NGO
International Remittance
House
Banks
Mobile operator
Retail & distribution
3rd party platform provider
Regulator
Thanks