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Introduction to Digital Financial Services
Digital
Adaption
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Adaptation Trend
How we start our day?
Previous night- Set Alarm for morning
Wear Digital Wrist Band
Wake up by Alarm
See Clock
Switch on TV
Check new SMS/Mail/FB etc.
Call Driver/Using Uber Apps
After reaching office/Business- Start working through Computer
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Our eyes sends electro chemical signals to brain,
brain matches those signals with stored image
memory, that’s how we see.
Our brain receive & send signals through neuro transmitters which responds via
specific hormone for specific activities or reasons.
All signals transmitted by a digital logic, human body is compare to a high-tech
machine with a powerful & multi core processor.
So digital transformation or adoption is a natural process for human, and considering
the development of technology it is the high time to transform our business and
lifestyle to digital platform.
Digital Channels for Financial
Inclusion
• Centralized Online Banking or Core Banking System(CBS)
• Internet Banking
• ATM, CDM, Debit & Credit Card
• Agent Banking
• Mobile Banking
• Mobile Wallet with QR Based payment
• Call Center
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SBAC Bank in Digital Financial Services
We have
Real time online Core Banking Software(CBS)
Trade Processing Unit & SWIFT
Debit & Credit Cards
ATM & CDM
Digital Wallet (Bangla pay)
24 hour Call Centre(starting soon).
Wings of Digital Financial Inclusion Division
Card Center- Debit & Credit Card
Alternative Delivery Channel (ADC) - ATM, CDM & CRM
Bangla pay (Wallet & MFS)
Call Center
Card sales
Merchant Acquiring
Sub Branch(FI Branch)
Agent Banking
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Importance of Digitization
As we are operating our banking business digitally, we need to focus on IT
functionalities and ensure proper investment on it.
There are 2(two) forms of money in the world
1. Logical form(Stored in computer as data)
2. Physical form( Printed in notes, preserved in bank or circulated through individuals.
All asset & liability values are recorded logically in servers and only 8.3% are in cash
form.
How we secure our Logical & Physical Money?
For physical money we spent: Monthly
Total money: BDT 94 Crore
Space rent: BDT 4,70,000/-
Armed security: BDT 18,80,000/-
Insurance Premium: 4,32,292/-
Total monthly cost: BDT 27,82,292/-
So cost per crore: BDT 29,598/-
But how much we spend for securing BDT 6,000/- crore of logical
money?
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How many times we visit Bank Branch?
At present, people visit 7 (seven) times a year on average,
(industry analysts CACI, June 2017)
People with higher incomes visit banks more often than people
with lower incomes
From 2009 to 2016 near about 8000 bank branches closed their
operation in USA.
What a Customer Wants from a Bank?
Banking service Conveniently
Which is only possible by improving Digital services.
In first world people are moving from online Banking to Virtual Banking.
Dutch Bangla, The City, UCB, Brac, EBL etc are the best examples
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So we need to Focus on
Transform traditional Banking in to
Digital Financial Services
What is Financial Inclusion?
Financial inclusion is where individuals and businesses have access
to useful and affordable Financial Products and Services that meet
their needs that are delivered in a responsible and sustainable way.
Financial inclusion is defined as the availability and equality of
opportunities to access financial services. One of its aims is to get
the Unbanked and Under-banked to have better access to financial
services.
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What is the purpose of
Digital Financial Inclusion?
To expedite banking service among the
unbanked & under-banked population
Understanding Unbanked & Under-Banked
The Unbanked are adults who do not have their own bank
accounts.
Under-banked refers to families that prefer to manage their
finances through cash transactions instead of more
traditional financial services such as checking accounts,
savings accounts, Debit/credit cards and loans.
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Unbanked Statistics
70% of people in Bangladesh do not have access to formal
financial services.
Only 7% rural adults have access to bank accounts, in urban areas
it is 45%.
88% of Bangladeshis do not have financial plans for unexpected
events such accident or illness.
84% of women can not take decision on daily household
expenses.
Present Status of Financial Inclusion
Only 40% adults have access to mobile financial services
Only 19% have access to Banks
Total Deposit Account with Banks: 8.4 Crore
Mobile Banking Accounts: 6.13 Crore
Agent Banking Accounts: 8.73 Lakh
1.7 Crore accounts of Tk 10, Tk 50 & Tk 100 for Farmers & under privileged.
More than 44 Lakh accounts for Beneficiaries of Social Safety net programs.
More than 13.34 lakh account for School goers aged under 18
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Digital Financial platforms statistics
Total ATM: 10,355
Total POS: 45,896
Total Bank Branch: 10,252
Total Credit Card 12,00,000
Total Debit Card 1,02,20,000
Total MFS Account 6.13 Crore(Registered 2.29) as of June 2018
Average Daily Txn BDT 1,051 Crore
As of December 2018 total E-Banking Customer was 20,40,000
SBAC
Digital
Wallet
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Functionalities
Fund Transfer
Utility Bill Payment
Mobile Top-up
Cash out from Branch/Agent
Cash in from Branch/Agent
QR based payment
Shopping
Credit Card Payment
Online payment/Purchase
Fund transfer to Bkash/Nagod etc
More Digital Financial Services:
Block chain
Crypto Currency
Google Pay
Apple Pay
Facebook Crypto currency Libra
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Understanding
Libra(Crypto
Currency)
(Planned to
launch in 2020)
Digital Financial Inclusion Division
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