Mobile Financial Services (MFS) have already started a while
back in Bangladesh and largest operators bKash, with 85% market share and Dutch
Bangla Bank Ltd, with 10% have invested huge sums for platform, network and
training. Still it is seen that these businesses are not making good enough
revenue, operating on loss or marginal profit. With over 2.86 crore mobile
banking clients in June 2015, the transactions are 85% of the time being done
Over The Counter (OTC). This makes accountability and records very
untrustworthy and unmanageable.
In a workshop about MFS, senior executives of banks took
part and discussed the issue recently. They agreed bringing in new smaller
competition in the market is not the answer, just like slashing call rates wasn’t
for improving investment on connectivity for mobile operators. Thus, the
government should encourage established banks to take lead with MFS.
With Eid just days away, business transactions are peaking
momentarily, including promotions of transport services and online purchase of
cattle. Payments must be motivated through mobile or online systems in these
high volume transaction times and this is the responsibility of operators and
regulators. This will happen, only in time, if not soon as Bangladesh continues
to progress towards a middle income economy.
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