The number of clients under Mobile Financial Services (MFS) crossed 3,00,00,000 in November last year with a sign of growing popularity among the mass people.
Amid rapid growth of mobile banking transaction during 2015, the total registered clients reached 3 crore in October last year for the first time and stood at 3.12 crore in November, according to the latest data of Bangladesh Bank.
The number of mobile banking clients increased by 33% or 79 lakh from over 2 crore in November 2014. Mobile banking gained popularity in Bangladesh quickly due to its easy access to transaction, said a senior executive of Bangladesh Bank.
Moreover, mobile banking reached to the remote areas of the country where banks could not reach as yet, he said.
“Banks are now focusing on expansion of mobile banking services as it costs less than setting up branches to reach mass people, resulting in rapid growth of clients and transaction amount,’’ he added.
Mobile banking saw 524% growth in terms of increased clients in last two years from 50 lakh in April 2013 to over 3 crore in November 2015, according to the central bank data.
The number of depositors account was over 7 crore as of September 30 last year of which 42% account holders have access to mobile financial services.
Some 5,52,652 agents across the country involved with mobile banking business through mobile financial services operators.
As the mobile banking business is flourishing rapidly, country’s telecom industry is also expressing its interest to involve with this business.
Bangladesh Bank drafted a new guideline offering telecom companies to make a new MFS platform associating with banks to make the business more viable.
The proposed MFS platforms allowed banks holding majority beneficial ownership in total equity while non-bank entity holding more than 15% and mobile network operators not exceeding 30% of its total equity.
The new guideline has now become a much-talked about issue among the bankers and the telecom companies as both parties are not happy with the proposed shareholding structure.
Telecom companies are demanding a telecom- led guideline instead of the proposed bank-led while most of the banks are strongly opposing the entrance of mobile operators into the business.
Although return from mobile banking business is not so high right now, it has the bright potentiality to become a profitable business, engaging highest number of clients, said a senior executive of a private bank.
“That is why, both the banks and telecom companies are now putting their focus on running mobile banking business.”he said.
The amount of daily transaction stood at around Tk500 crore in November last year which was around Tk300 crore in same period of 2014 and Tk200 crore in the beginning of the year 2013.
The monthly transaction reached to record high of Tk14,915 crore in November, 2015.
Of the 28 banks that got permission for MFS service from BB, 19 are so far delivering MFS services across the country.
