Bangladesh can use mobile financial
services not only to accelerate financial inclusion, but also to bring
more than 85 percent unbanked population to the mainstream at a cost
effective manner.
Despite the enormous demand for mobile phone-based financial services, a large-scale adoption is yet not seen.
Analysts and policymakers made the
observation at a roundtable co-organised by The Daily Star, BRAC Bank
and bKash at The Daily Star Centre yesterday.
Former adviser to caretaker government Abdul Muyeed Chowdhury moderated the programme.
Some of the discussants proposed to form
a body comprising the officials of the central bank, the telecom
regulator, microfinance regulator and other stakeholders, to promote the
services.
“A body can be formed to identify the
problems and expand the services further,” said Khondkar Ibrahim Khaled,
chairman of Bangladesh Krishi Bank and former deputy governor of
Bangladesh Bank.
He said microfinance institutions can be
the alternatives to the banks in expanding the mobile financial
services across the country.
Muhammad Abdul Mazid, former chairman of
the National Board of Revenue, also echoed the views of Ibrahim Khaled
on the coordination issue.
“There is a necessity of coordination
among the regulators to avoid any conflicting situation,” said Mazid who
presented a paper on mobile financial services in Bangladesh.
The coordination issue came to the
limelight as mobile financial services in Bangladesh are a bank-led
model run by mobile phone companies, which are regulated by the
Bangladesh Telecommunication Regulatory Commission (BTRC).
Often these two regulators come up with separate orders having no coordination between them.
Iqbal Quadir, a director of bKash and a
teacher at the Massachusetts Institute of Technology in the US, also
raised the conflicting issues between the banking regulator and the
telecom regulator.
AB Mirza Azizul Islam, another former
adviser to caretaker government, also stressed the need for coordination
in the regulatory framework of the Bangladesh Bank and the BTRC.
Abdul Muyeed Chowdhury also endorsed the idea of forming a separate committee to promote the services.
Bangladesh, with a population of 150
million and a per capita income of around $800, has seen a steady
economic growth over the past 15 years. Poverty rates have halved from
60 percent in early 1990s to 31 percent in 2010.
This development has also been reflected
in the growth of the country’s financial sector, supported by the
recent transformation in banking technology.
Speakers said despite these significant
improvements, access to basic financial services is still restricted to
only 15 percent people.
They said, for the financially excluded
people, opening and maintaining bank accounts can be costly, complex and
time-consuming due to a lack of education and awareness.
The central bank has allowed 23 banks to
operate mobile financial services. But only two banks — BRAC and
Dutch-Bangla — have come up with the services and registered 20 lakh
clients so far.
“Identity is a big problem,” said Nazrul
Islam Khan, secretary to the ICT ministry, on the security concern in
mobile banking services.
Khan said he is trying to convince the
government to make an accurate database of the population, which can be
used for mobile banking services.
Mahabub Hossain, executive director of
BRAC, a non-government organisation, said mobile banking can benefit the
poor who feel shy to go to a bank. But further investment is needed to
reach out to the people, he added.
Khalid Shams, former chairman of
Grameenphone, said there are some risks in the service, but Bangladesh
should seize the opportunity.
Shams, a former bureaucrat, also asked the operators to come up with new products for the targeted people.
Abul Kashem Md Shirin, deputy managing
director of Dutch-Bangla Bank, said cost is not a big issue in mobile
banking as there will be no cost if there is no use. On security
concern, he said it is like using credit/debit cards and there is
nothing to be anxious.
Michael Kuehner, chief executive officer
of mobile operator Robi, said costing and convenience of services are
the two main components in mobile banking.
Hassan Zaman, chief economist of the
central bank, said they have planned to launch a financial literacy
campaign to make people aware. On why other banks are not coming with
the mobile banking services, he said may be it is for the investment and
profit margin issues.
Zaman also said the BB is trying to
disburse money to the targeted people through mobile phones under
different government programmes.
Brig Gen (retd) Shahedul Anam Khan,
defence and strategic affairs editor of The Daily Star, delivered a
welcome address, while Shah Husain Imam and Salehuddin Ahmed, associate
editor and managing editor of the daily, and Syed Mahbubur Rahman,
managing director of BRAC Bank, also spoke.
Source: The Daily Star
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