Prospects and Challenges of Mobile Financial Services (MFS) in Bangladesh

Mobile Financial Services Overview

Bangladesh Bank, the central bank of Bangladesh, introduced effective use of the off branch MFS in the year 2011 in the country, since a universal portable network got established, a sizable amount of movable users and well equipped IT infrastructures were developed by then. The exponentially expanding bank-led MFS model has taken place in the world market (Bangladesh Bank). Bangladesh Bank licenses make the most cash out and in, business to person (B2P), person to business (P2B), person to person (P2P), government to person (G2P) and person to government (P2G) payment services over MFS nationally. Foreign cash delivery is not allowed in this facility but native payment of inner overseas remittance through banking channels is allowed. Any adult can open an MFS account with any operator at a bank branch or agent point by submitting a photograph and lawful documentation. The identical provider is not allowed here, one MFS account belongs to one person. All banks in Bangladesh join with the National Payment Service (NPS), the client engaging positive documentation of any bank is going to draw money from any point of sales (POS) and automated teller machine (ATM) inside the country, for this reason transaction charges meaningfully decreases. Because transactions are going to be directed by the NPS rather than Visa, Amex or Master card networks overseas, buying and sales will be done by the cards over web portals within the country area (Daily Star, 2012).

Source: Bangladesh Bank