Over the last five decades, Bangladesh has been transitioning from an agrarian economy to one based on industrialization and technological advancement.
The country is now aiming for economic diversification by tapping into the multitude of opportunities in the technology arena.
Mobile financial services (MFS) sector is one of those trailblazers that have contributed greatly to the fulfillment of the vision of Digital Bangladesh.
bKash has played a pioneering role in this sector to bring digital financial services to the doorsteps of every citizen, especially during the Covid-19 pandemic.
Using home-grown talent, state-of-the-art technology, inclusive financial ecosystem and a large distribution network, bKash is leading the way in the MFS sector of Bangladesh and has the potential to grow even further in the fintech arena.
Recently, bKash has received investment from the world’s largest technology investment fund, SoftBank. This is a significant achievement not only for bKash but also for Bangladesh.
As a result of this, Bangladesh becomes a more favorable destination for foreign direct investment (FDI).
Launched in 2011, bKash, a joint venture of Brac Bank, US based Money in Motion LLC, International Finance Corporation of the World Bank Group, Bill and Melinda Gates Foundation and Ant Group, operates as a payment service provider offering a broad range of digital financial services under the regulation of Bangladesh Bank.
One of the many reasons for bKash's excellence is its compliance practice – abiding by stringent supervision and guidelines of the regulator, Bangladesh Bank.
This has provided a strong foundation for the company to attract quality FDI as well. Many other startups are following in the footsteps of bKash.
The rise of startups is expected to continue at pace, and grow by $10 billion by 2025. The story of bKash resonates with the success of Bangladesh.
As the country turns 50, bKash’s significant efforts over a decade have contributed to the economic growth of the country and widespread financial inclusion.
Kamal Quadir, founder and CEO of bKash, said: “Following the guidance of the regulator and the government’s vision of a digital Bangladesh, we started our journey 10 years ago with a dream to empower the unbanked population by bringing them under regulated financial services. Now the unbanked, underserved and even the banked population are benefiting from the wide range of bKash services. While our robust technology infrastructure is a key strength, identifying customers’ pains, addressing them with customer-centric innovation, professionalism and dedication of my colleagues, the wide reach of hundreds and thousands of agents, and the trust of our customers have been the foundational pillars of our growth story.”
“Financial inclusion has been in the DNA of bKash since the very beginning. The impact we have been trying to have on the lives of millions of people would not be possible without such empowerment. bKash is made in Bangladesh, and made for Bangladesh, serving 57 million customers at this moment. We are a company of global standard exclusively built by local talent, state-of-the-art technology with an international quality ownership structure. We are relentlessly working to make bKash a Bangladeshi powerhouse of the Fourth Industrial Revolution. bKash is a technology-driven company and we solely remain focused on MFS. Our true north never moves and that undivided focus on providing customer service has earned us their trust,” he added.
MFS evolution
The journey of a decade of bKash started with essential services like ‘send money’, ‘cash out’, and ‘cash in’ which is now enriched with new services like mobile recharge, payment, bank to bKash money transfer (add money, transfer money), disbursements of banks’ digital micro-loan, remittance, payment of utility bills, and monthly Savings schemes of financial organization.
bKash is continuously widening its capability by using technological innovation and creativity to diversify and expand its services.
As a result, bKash has won the country's Best Brand Award twice in a row as per the consumer survey conducted by Bangladesh Brand Forum.
At the same time, bKash has emerged as the Number 1 ‘Employer of Choice’ as per Nielsen Campus Track Survey 2020, while also being chosen as the 'Dream Employer'.
In the last decade, MFS has had a deep impact on the economy of Bangladesh where bKash has played a pioneering role.
The impact of bKash has been studied by the think tank, Bangladesh Institute of Development Studies (BIDS).
The study titled, "Impact of Mobile Financial Services in Bangladesh - The case of bKash" shows that the usage of bKash has boosted income of households, empowered women and reduced the impact of risks during times of uncertainty.
The report credited four factors for the success - quality investment, technology, distribution network, and compliance.
The study found that domestic remittance to households using bKash increased by 60% while per capita income went up by 28%.
During natural disasters, bKash users did better to withstand the challenges.
Amount of cash-in increased by 33% while cash-out increased by 30% during floods, highlighting the impact of the service provider.
bKash is helping to close the gender gap as well.
Currently, 42% of bKash users are female while 58% users are male. bKash has also contributed to women empowerment.
According to the BIDS study, amongst bKash users, women's ownership of wealth has increased by 14% and their participation in income-generating activities was up by 9%.
Overall, bKash is playing a crucial role in financial inclusion, poverty alleviation, women empowerment, creating employment, business opportunities as well as increasing the share of household expenditure on education and health.
In all of its services, bKash keeps financial inclusion in focus. Therefore, the word ‘bKash’ has become a verb now. Instead of ‘send me money’, customers now say ‘bKash me’.