Transactions using mobile financial services (MFS) in Bangladesh were Tk108,000 crore in May this year.
On a year-on-year (Y-o-Y) basis, this was a rise by 42 percent, compared to the same month last year, according to Bangladesh Bank data.
Around Tk76,000 crore were traded through MFS providers in May last year.
Central bank data analysis also revealed that transactions crossed Tk100,000 crore for three consecutive months, from March to May earlier this year.
According to the data, Around Tk108,000 crore was transacted in March, and a record Tk125,000 crore in April 2023 through MFS.
Regarding record transaction figures, market insiders said that over the past few years, MFS has emerged as a game-changer, successfully bringing a substantial number of previously unbanked poor populations into the formal banking system.
These populations, residing in both rural and urban areas, were long denied access to traditional banking services, they also said.
Transactions were also increasing due to an increasing faith in the MFS providers, they added.
Ahsan H Mansur, executive director of the Policy Research Institute (PRI), emphasized the significant role of digital financial services in bringing the unbanked population into the formal financial system, empowering them to take control of their financial decisions.
He suggested that MFS providers must diversify their services and products, according to market demand.
Data analysis also showed that merchant payments through these services were rising very fast.
According to the central bank, payments made using MFS at super shops and businesses crossed Tk6,000 crore for the first time in May this year, which was Tk2,747 crore in the same month of 2022.
That means merchant payments through these services increased by 124% in a year.
Bangladesh Bank’s latest data also showed that around Tk1,022 crore worth of talk-time was purchased in May 2023 using MFS, hitting a new record.
Apart from that, utility bills amounting to Tk2,962 crore have also been paid through MFS in the same month, also a record.
According to the central bank data, the total number of MFS subscribers stood at 204 million at the end of May 2023.
The number of subscribers has grown by 25 million last year. These customers made over 500 million transactions in May.
Stakeholders said the total number of accounts in MFS crossed 200 million, but the number of unique customers is not so high.
The reason for this, they say, is that a customer uses multiple MFS accounts, which makes the number appear larger.
Bangladesh Bank launched mobile banking activities in 2010.
The first mobile financial service in the country — Rocket — began its journey on March 31, 2011.
Currently, there are 13 banks offering mobile financial services in the country such as bKash, Rocket, Upay, UCash, MyCash and SureCash.
