MFSs to cashless society for financial inclusion in Bangladesh

“Banking is necessary, but banks are not.” -Bill Gates (1994)

Banking system is called the 'lifeblood' of economy whereas ‘MFSs/Mobile Banking’ has become the ‘lifeline’
of Banking System. Heart circulates the blood in every knock and corner of human body as like as MFSs i.e
Mobile Banking circulates money as well as banking services within the shortest possible time.

“Mobile Financial Services (MFS) is an approach to offering financial services that combines banking with mobile
wireless networks which enables users to execute banking transactions.”—Bangladesh Bank

Mobile banking is a Mobile Financial service (MFS) provided by a bank or other financial institution that allows
its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet.
Mobile Banking Services:
 Balance Enquiry.  Fund Transfer between accounts.
 Mini statement Enquiry.  Credit/Debit Alerts.
 Check Status Enquiry/Request  Minimum Balance Alerts, etc.

Page 1 of 5
Mobile Banking in Bangladesh:
The City Bank Limited is the first bank that gave the idea by their mobile banking software named as “City
Wallet” in October, 2009. The Bangladesh Bank launched a mobile banking program in 2010. However, the
country's first private sector mobile financial service commenced on 31 March, 2011 with the launch of Dutch-
Bangla Bank's service Rocket.
MFSs & Financial Inclusion: Financial inclusion has emerged as a tool to achieve inclusive growth for poverty
reduction since 2005.All elements of financial inclusion can be easily achieved by MFSs

MFSs & Financial Inclusion [ 2018 ]

Page 2 of 5
Number of Mobile Financial Service & Scenario of Finacial Inclusion
Total MFSs Accounts & Increasing December, 2021 16.97 Cr
Scenario of Finacial Inclusion December, 2022 19.11 Cr
Source: Bangladesh Bank

According to the latest Bangladesh Bank data(2023), the number of MFS account holders was 10.60 cores in the
rural areas as of December last, significantly higher than the 8.50 crore in urban areas. The year-on-year growth
in account-holders in rural areas was 9.13% and in urban areas 17.19%. At present the number of accounts with
mobile financial services (MFS) such as bKash and Nagad surpassed the 19 crore-mark in the country, according
to the latest data of the central bank.
Mobile banking transactions:
“We need banking but we don’t need banks anymore”. Bill Gates
Banking has become possible without bank by the grace of Mobile Banking. With the addition of fresh services,
the Mobile Financial Service (MFS) sector recognized as Mobile Banking has witnessed a major transformation
recently in the form of a 28% increase in transactions over a year, according to data from the Bangladesh Bank.
The monthly transactions through mobile financial services (MFS), such as bKash, Nagad and Rocket.
Mobile banking services in the country have undergone a radical change owing to the convenience of transferring
money from city to village areas and vice versa. As a result, the number of transactions is increasing with the
number of customers. In addition, people have become more comfortable with mobile banking than direct and
cash transactions.
Advantages of Mobile Banking:
 User can transfer fund from one bank account to another with a smartphone just with the help of the
internet, from anywhere to everywhere.
 Remote Banking.
 Round-the-clock availability.
 Easy access.
 Improved customer experience.
 Monitoring transactions.
 User friendly
 Cost effective.
 Time saving
 More secure and risk free than online banking, etc.
Disadvantages of Mobile Banking:
 Risk of receiving scams.
 Vulnerable to hackers and other digital threat.
 Extra charges for internet services.
 Not suitable for large business.
 Internet Phishing.

Page 3 of 5
  Limited Services, etc.
Challenges Associated with Mobile Banking:
Some of the challenges associated with mobile banking include (but are not limited to):
 Mobile Banking causes inconvenience for less tech-savvy account holders.
 Raises security concerns and online fraud, susceptible to hacking and other cyber security threats.
 It can be less secure than traditional banking, as mobile devices are often lost or stolen.
 It can be expensive, as customers may need to pay for data plans or other fees to use the service.
 Results in delays or losses in transactions due to mistakes.
 Gives rise to comprehension issues due to the complex app interface.
 Delays service requests in case of internet issues.
 It can be intrusive, as some banks may send customers marketing messages or other information that
they do not want to receive.
“Digital payment systems can do more for equality in poor countries than they can do anywhere else".
Bill Gates
The financial activities as well as the volume of economy of Bangladesh is expanding rapidly where mobile
banking is playing a great role because there is no tools without mobile banking which can ensure “Banking for
All” for a developing country like ours. The government as well as regulating authority should strictly regulate
the Mobile Financial service (MFS) sector to make it available for all people.

[ Mobile Banking-Agent Banking-Online Banking-Mobile Financial Services-Bank Related যেক োন যেখোয় মন

বো য য োকেশন সন্নিকবশ কে সোন্নিকয় গুন্নিকয় ন্নেখকে হকব।–Engineer’s BCS Care ]

N.B: বোস্তবেো হকেোোঃ য ো োস এ “ডোেো-চোেট-বক্স-সংখযোেত্ব’ যেয়ো েোয় নো বেকেই চকে। েোই ন্ননউকমন্নে যোে ডোেোক য ো োস নো
কে সু ন্দেভোকব গুন্নিকয় উপস্থোপন য ৌশে ন্নশখকে হকব। --Engineer’s BCS Care

য ো োস বো Essay েোইন্নেং এ শুরুেো সবসময় ওই েন্নপ ন্নেকেকেড প্রোসন্নি য োন য োকেশন ন্নেকয় শুরু েো যেকে পোকে।
যেমনোঃ “Banking is necessary, but banks are not.” -Bill Gates (1994) অথবো “We need banking but
we don’t need banks anymore”. Bill Gates

[ Mobile Banking is very important…. এই েোইপ সস্তো বো য ন্নেকয় যেখো শুরু েকবন নো। প্রথম পযোেো ন্নেখকে এ েু যবন্নশ

সময় ন্ননন। ]
মুখস্থ ন্ন িু HD য োয়োন্নেন্নেে বো য ন্নেকয়ও শুরুেো েোরুণভোকব েো যেকে পোকে। Bank/Banking Related প্রশ্ন আকসই…
আন্নম শুরুেো েেোম এভোকব… ]
*** is called the 'lifeblood' of economy where ‘Mobile Banking/**’ has become the ‘lifeline’ of Banking
System/ [ Bank/Banking Related যেক োন যেখোয় বো যন্নে/বো যন্নেে অংশন্নবকশষ ঘুন্নেকয় বযবহোে েো েোয়! ]
েন্নপ য হোইেোইে কে েু েযো পকয়ন্ট এ ন্নেখুন। ন্ন -য ন- বেটমোন অবস্থো-সু ন্নবধো-অসু ন্নবধো-গঠনমূ ে মেোমে প্রশ্ন বো
েন্নপ অনু েোয়ী ন্নেকে হকব।
যমইন পকয়ন্টগুকেো নীে োন্নেকে অথবো আন্ডোেেোইন কে যেয়ো যেকে পোকে।
ন্নবকেষণধমটী/পকিন্নেভ যেখো বো য োন গ্রহণকেোগয বযন্নিে উন্নি মেোমে ন্নেকয় ইন্নে েোনো যেকে পোকে। যেমনোঃ “Digital
payment systems can do more for equality in poor countries than they can do anywhere else".
Bill Gates

Information Box

Page 4 of 5
যে য োন েন্নপ এ আপনোে এ েো information Box থো ো উন্নচৎ যেখোকন আপন্নন ওই েন্নপ সংন্নেষ্ট য োে ও ন্নিম ইন েকমশন
যিকন/সংগ্রকহ েোখকবন এবং পেীক্ষোয় ওই েন্নপ বো োিো োন্নি যেক োন েন্নপক ন্নেকেে কে ইন েকমশন গুকেো আপনোে যেখোে
োাঁক োাঁক িুকে ন্নেকয় আসকে হকব।
আন্ডোেেোইন েো এন্নেকমন্টসগুকেো যিকন েোখকে যে ন্নন যোন্নে ন্নবন্নভি যেখোয় োকি েোগোকনো যেকে পোকে। মকন েোখকে হকব য ো োস
হুবহু েোইন বোই েোইন যেখো েোয়নো, য ৌশকে ন্নেকখ আসকে হয়।

 Bangladesh moving towards ‘Doorstep Banking’-Daily Sun

 “Bangladesh can be called the world champion in mobile banking services.”Md. Mezbaul Haque,
Executive Director of Bangladesh Bank
 "The biggest achievement of this service is making financial transactions accessible and easy to people
from all walks of life, especially people from remote areas who are deprived of banking facilities."- Md.
Mezbaul Haque, Executive Director of Bangladesh Bank
 According to Bangladesh Bank, 178.6 million mobile accounts are now registered for MFS.
 According to data from the Bangladesh Bank, the total number of users registered with 13 mobile financial
service providers reached 18.11 crores in July 2022, an increase of more than 16% from 15.60 crores in
July of the previous year.
 “Fast-growing agent banking has helped develop entrepreneurship particularly in rural areas of
Bangladesh along with boosting financial inclusion initiatives through bringing more unbanked people
into the banking network.”-The Financial Express
য ো-ন্নেকেশনোঃ পকেকিন MFS, Agent Banking Mobile Banking পেীক্ষোয় আসকেো Cashless Society!

Cashless Society
 “The next step of Digital Bangladesh is building a cashless society.”-Sajeeb Wazed Joy
 "Our target is to ensure entirely digital paperless office and build cashless society by 2041. It will
help ensure transparency and accountability."- Zunaid Ahmed Palak, State Minister for ICT Division

‘Govt aims to build cashless society within 3-4 year’-- Sajeeb Wazed Joy
য ো-ন্নেকেশন কে উপকেে অকন েথয/য োকেশন এখোকনও ইউি েো েোয়! যেমনোঃ

“Banking (Transaction) is necessary, but banks are not.” -Bill Gates (1994) অথবো “We need banking
(Transaction) but we don’t need banks anymore”. Bill Gates

(১/২ েো প্রোসন্নি উন্নি, ন্ন ? য ন? বেটমোন অবস্থো, সু ন্নবধো? অসু ন্নবধো? চযোকেঞ্জ, েনীয়/যেক োকমকন্ডশন***, ইন্নেবোচ সমোন্নি। )
Engineer’s BCS Care

Page 5 of 5