In just three years of the introduction of mobile phone financial services (MFS), the cash-strapped MFS service, launched by the public-private sector, has reached out to millions of customers in remote areas of the country. In just a few years, the company has shown some surprises in this market.
Today marks the third anniversary of the start of cash operations. On March 26, 2019, the great Independence Day, the government postal department and some private individuals and organizations launched the new MFS service called Cash.
In just three years, crores of customers scattered across the country are transacting an average of Tk 650 crore every day through this service. Cash is now one of the means of transaction for about 26,000 companies in the country. About 2 lakh 15 thousand agents are directly involved in cash service activities in remote villages from the city. Apart from this, using the services of different banks also brings money in cash and costs. From the very beginning, the company has been providing Islamic transaction facilities to the customers along with the conventional financial services. In just 36 months, it has become the second largest MFS service provider in the country.
In 2019, Prime Minister Sheik Hasina officially inaugurated the 'Cash' serviceFile photo: PID
Cash is now a big hope in providing various government services as private institutions as well as government institutions are associated with cash. From cash to old age allowance, various government allowances are reaching the homes of disadvantaged people. In just three years, the number of registered cash subscribers has crossed 6 crore. With a huge customer base in a short period of time, the cash authorities are now making new plans to expand the scope of services. As part of this, Cash wants to start 'Small Savings and Loans' activities this year. Authorities believe the new service will boost cash flow.
In this regard, Managing Director (MD) of Cash Tanvir Ahmed told Prothom Alo , “We are working with the regulatory body to launch small savings and credit services. If this new service can be introduced, on the one hand, the wife of a village farmer will be able to save, and on the other hand, small shopkeepers will be freed from the high interest of 33 percent.
We are working with the regulatory body to introduce micro-savings and credit services. If this new service can be introduced, on the one hand, the wife of a village farmer will be able to save, and on the other hand, small shopkeepers will be freed from the high interest of 33 percent.
Tanvir Ahmed, Managing Director (MD), Cash
It is learned that in 2016, the government invited tenders for mobile banking services. Third Wave Technology participated in the tender. Third Wave gets the job done and approves the start of privately owned postal service cash operations. Cash started its journey on February 23, 2019 as a pilot project. Later, on March 26 of the same year, the official cash service was inaugurated. From the beginning, it has managed to open accounts through digital KYC (customer information).
Being a government postal service, the company has got some additional benefits from other MFS companies from the very beginning. The customers have also got the benefits. Due to this huge customers are created in a short time. Although MFS is an institution, Cash is not yet an authorized institution of Bangladesh Bank. However, the approval of the central bank is in process. Bangladesh Bank has already issued 'Mobile Financial Services Rules 2022' to popularize MFS services including cash. As a result, banks as well as government institutions and non-bank financial institutions will also get licenses for MFS service activities.
Certain conditions have been set for approving cash. The company has met the conditions and has not yet applied for a license. We will consider the application.
Sirajul Islam, Executive Director and Spokesperson, Bangladesh Bank
When asked, Sirajul Islam, executive director and spokesperson of Bangladesh Bank , told Prothom Alo , “Some conditions have been given to approve the cash. The company has met the conditions and has not yet applied for a license. If you apply, we will consider. '
Meanwhile, cash is playing a unique role in extending services across the country in just three years as well as delivering various government allowances and incentives to the real beneficiaries. Managing Director Tanvir Ahmed said that the success of the company is due to the opportunity to easily become a customer in the course of three years. He said, 'Only 30 percent of consumers in the country use smartphones. So not everyone has the opportunity to open a digital account. In this case, we take the initiative to open an account based on the information submitted to the mobile phone operators. That is why most of the cash subscribers have come through Grameenphone, Robi and Teletalk.
Cash at a glance
Registered subscribers: 7 crore 8 lakh (till March 22), active half.
Transactions: A daily average of Rs 650 crore.
Cost of service: Free remittance and minimum cash-out charge.
Market position: Second best MFS in the country in terms of customer base and transactions.
Innovation: Introduction of e-KYC and opportunity to open account by dialing * 16 #.
Specialty: Leading in digital distribution of government allowances and assistance.
Cash Islamic: The first Islamic service in the country in the MFS sector.
Meanwhile, from the beginning, the cost of service charges or financial transactions has been lower in cash than other MFS institutions in the country. As a result, the consumer's inclination towards cash has increased manifold. Asked if the new company was counting the losses by reducing service charges to attract customers in a competitive market, the cash MD said, "Not at all. We have no loss with various services. Although there is no profit from one service, there is income from another service. Due to this there is no loss. Again we have reduced others due to reduction of service charges. MFS customers are getting the benefits.
0 Comments