cash working group workshop with mobile money transfer ... · pdf filewere given a sim card...

SUMMARY REPORT

Cash Working Group Workshop With Mobile Money Transfer Financial Service Providers

January 2015

- Prepared by Eun Jung Yi, Technical Coordinator of Bangladesh CWG

TABLE OF CONTENTS

Glossary of acronyms 2

Background to the use of CTPs and MMT in emergencies in Bangladesh 3

Summary of discussion and agreed actions in the workshop 4

bKash 7

DBBL 10

IFIC 13

Next steps 17

Appendices 18

2

Glossary of acronyms

Cash agent Cash for Work CTP

An employee of financial service provider, who redeems mobile money for cash Payment provided as a wage for work, usually in public or community work programmes. The provision of money to beneficiaries (individuals or households). This may be either as emergency relief intended to meet their basic needs for food and non-food items or services, or to buy assets essential for the recovery of livelihoods.

KY C Know Your Customer. A legal customer due diligence process which requires the provision of identification information on the senders and receivers of cash transfers.

Mobile money Digital currency which is stored in an electronic wallet on a mobile phone

Mobile wallet An electronic wallet accessible on a mobile subscribed to a mobile money service

MNO Mobile network operator. A service provider that offers mobile network, coverage and payment transactions.

SIM Subscriber identification module. An integral circuit that securely stores data to identify and authenticate subscribers on mobile telephony devices. The circuit is embedded on a small card, commonly called a SIM card.

Sources: CaLP CTP Glossary (2011) and CaLP E-Transfers in Emergencies: Implementation support guideline

3

Background to the use of Cash Transfer Programmings and Mobile

Money Transfer for emergency response in Bangladesh

Bangladesh is a front-runner when it comes to adopting innovative assistance. The humanitarian

sector is not an exception. The CTPs are becoming more acceptable to use across different sectors

from food security to shelter and WASH. The Bangladesh humanitarian community embraced the

new evolution toward complete cash transfers from in-kind during cyclone Aila response in 2011 and

adopted various CTP modalities from direct to mobile money transfer since tropical storm Mahasen

in 2013.1 As of January 2015 more than 60,000 flood-affected victims received cash support to meet

their basic needs and livelihood support from 13 humanitarian agencies across in the northwest.2

Among them 19,000 families received the cash assistance through mobile money transfer. They

were given a SIM card and PIN number to withdraw their grant from established or roaming cash

agents with the option to conduct other financial transactions such as cash deposit and payments.

Although the emergency CTP was short in nature, the benefits would last longer.

So far, the real success of MMT has been a mixed picture. The Cash Working Group has witnessed

unmet expectations from humanitarian agencies and challenge found in fields. Despite some

recognizable benefits such as flexibility, speed, and dignity to beneficiaries, various problems

occurred. To name a few, the long set-up time, wrongdoings of cash agent, complex agreement

process and slow beneficiary registration process and so on which are against the rationale for doing

MMT rather than direct cash distribution.

It is obvious that the Bangladesh MMT market is promising with much room to make positive change

and develop tailored service for humanitarian cause. However, negotiating with private sector is not

always smooth without much progress. That is why the Cash Working Group collected opinions and

calls for a workshop with MMT financial service providers to share with them the identified problem

and to instruct them to meet the critical demands. This workshop shall be an opportunity for

humanitarian agencies to learn the perspectives of private financial service providers and find

common success factors for better CTPs.

1 The complete set of cash-only assistance took place in 2011 by NARRI consortium. 2012 NW flood was the

first time that MMT was used for emergency response in Bangladesh (Oxfam). 2 For complete display of CTP response, please check

https://docs.google.com/spreadsheets/d/118g8vVi2mamFLAdDM7HNgc6bGyvb0Am6eCnguh523lc/edit#gid=1716781090



4

Summary of workshop

On January 26th, 2015, the Cash Working Group hosted a full-day workshop with mobile money

transfer financial service providers at Concern World Wide office in Dhaka. The workshop was part

of CWG’s 2015 Plan of Actions under Collaborate and coordinate with service providers to design

better CTPs and to negotiate better terms and conditions individually or as consortium.

The purpose of the workshop was to bring together humanitarian agencies and donors to 1) clarify

the financial service range and geographic reach of existing providers’ infrastructure and capability,

2) find out how to gain real benefits from MMT at emergency and how to reduce loss, and 3) plant

seed for longer-term partnership with private sector. The 29 workshop participants (Appendix 1)

represented over 13 organizations, including INGO, UN and donor.

The agenda (Appendix 2) began with an overview by CWG Technical Coordinator of the context of

MMT in humanitarian emergency in Bangladesh; benefits and drawbacks of using MMT from latest

operation, its set-up process, and CWG’s perspectives for minimum level of service from MMT

financial service providers. Participants then shared their ideas on what kinds of support they expect

from service providers to improve their emergency operations; procurement process of SIM and

relations with telecoms, interest rate for savings, cash agent control issues, data protection, and

contingency plan.

MMT set-up processes in Bangladesh – Humanitarian agency perspective

Assess the commercial landscape of services and

providers

Negotiate and sign contract

with the chosen service provider

Ensure compliance of

financial service with internal and

donor requirements

Open a bulk account at the

bank of the service provider

Order SIMs/mobiles

Register beneficiaries with

associated account

Train beneficiaries on how to use the MMT service

Populate beneficiary data

and make a transfer

5

Collected expectation on minimum level of service required for MMT financial service providers

• Acceptable transaction limits

• Sufficient presence of cash collection/transaction point

• Acceptable maximum travel distance to cash collection point

• Adequate levels of liquidity

• Technical support

• Willingness to sign CWG member agency’s code of conduct including data protection

• Willingness to train their agents for humanitarian service

• Willingness to expand their service to CSR

The workshop consisted of individual sessions with bKash, DBBL, and IFIC on their service package,

work flow and conditions and discussions to meet CWG’s demands and service provider’s capacity

and willingness. The participants were given a profile of each company’s deal to have a good sense

of the product range. Each session ended with a set of actions agreed by service providers to take.

6

Moving forward

This below is the summary of agreed actions for service providers to take.

Key actions bKash DBBL IFIC

Full processes to undertake the transfer to beneficiary with humanitarian agency

-

Realistic timeline throughout the set-up and disbursement process

-

Breakdown of tariff and cost occurring throughout the processes

Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to share with CWG agencies

Concepts or ideas on tailored service package to CWG agencies

done

Contingency plan or alternative option in operation

Ideas or plans to develop one-stop-service with mobile network operators for CWG agencies in emergency work

Challenges from working with humanitarian agencies

Revision of proposal to CWG

Each company’s presentations are attached as separate document to this report. You will find the

contents are different from the workshop as some part of presentations were deleted or modified

according to the desire of the companies to keep their essential information to themselves.

The CWG will closely work with the companies to take the agreed actions within two months.

7

Presentation and Discussion with MMT providers

1. bKash

ATM Mahbub Alam (Manager, Enterprise&Solutions) presented how bKash collection and

disbursement process, where their agents cover, and what their transaction charges and speed.

According to them, they have 85% share in MMT market with 135,000 agent points. (Attachment 1)

The 4-day set-up time was questioned by workshop participants whether it meant entire process or

only registration. As a response, bkash agreed to provide a full cycle of set-up and disbursement

process with minimum timeline required for each step during emergency response with CWG.

Awareness-raising effort was argued to be very weak in bkash operation. Participants asked for the

provision of training to their cash agents and beneficiary/client. Technical Coordinator agreed to

assist bkash to develop training materials for such use.

The other hot topic was the workload for CWG to conduct beneficiary registration both with MNOs

and finance providers. Participants asked whether they can synchronize the registration with

telecoms and even make a bolder step to offer one-stop-shop for humanitarian agencies. Bkash

agreed to explore the idea.

Other issues discussed are the lack of contingency planning, the difficulty to handle the beneficiary

ID problem, and the higher charge for cash management.

Below is the current capacity of bKash for emergency operation.

Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE bKASH

Services for transferring cash to beneficiaries Answer

Can the delivery system be used for savings or other functions? Yes. They can used for Savings.

Is the cash delivery system and / or database computerized? yes its computerized.

What is the capacity to deal with large number of beneficiaries without disruption or long queues?

We have 140 K agent all over the country so beneficiary can do the cash out from them. We also deploy the extra virtual agent in the project area.

Which organizations have you previously worked with for disaster response?

Oxfam,ACDI-VOCA, English-In-Action, Concern worldwide, Plan Bangladesh, Concern Universals,etc.

Account condition

8

What are dentity documents required by beneficiary? Fill up KYC,NID and photo.

How the cash transfer processes

Please outline of the process. Please find in the attach file.

Lead time required for service provision

How long does it take to register beneficiaries, set up accounts, and etc?

If we got all the documents and fill up KYC it will take 3 working days.

Security precautions

What measures would be provided to prevent theft or ensure money is not stolen or fraudulently accessed? .

Specify any security precautions or insurance provided

Do you sign aid agency's code of conduct for data protection? No

Corporate Social Responsibility policy and activities

Do you have special policy for CSR activities? No

Geographical coverage and accessibility What is the geographical coverage of your

outlets/networks in the country? Is possible, please provide union-level coverage breakdown. 140 k,Land Area :86% , Population 96%

Can the existing service be extended to provide a service in locations not served by your current infrastructure / network? If yes, how?

Yes, We deploy virtual agent to the extented area.

What time scale would be required for providing extended coverage?

What additional cost would be involved in providing increased coverage? No extra cost need for the client.

What back-up systems are available to address outages? N/A

What difficulties would you anticipate in using this system to deliver cash to people living in remote rural area?

Insufficient agent. Virtual agent can be managed for there.

Account condition

Is there any minimum balance to keep? Zero

Is there cost to open and shut down account? No

Would beneficiaries have to withdraw all the cash in one transaction or can they make multiple smaller withdrawals?

They can make multiple smaller withdrwals.

Set up charges and fees Registration cost per beneficiary Free

Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider? N/A

Are there any other administrative and overhead chages? No

Are there cost to activate PIN? No

Transaction charges

Cash deposit to all beneficiary account by humanitarian Zero

9

agency

Cash withdrawal by beneficiary 1.85%

Cash deposit by beneficiary Free

in store purchase Free

money transfer 5 BTD

bill payment Free

balance enquiry Free

other recurring or transaction charges No.

As outcomes from the workshop, bKash agreed to perform below actions. The timeline will be given

shortly in consultation with two other service providers.

- Full processes to undertake the transfer to beneficiary with humanitarian agency

- Realistic timeline throughout the set-up and disbursement process

- Breakdown of tariff and cost occurring throughout the processes

- Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to

share with CWG agencies

- Concepts or ideas on tailored service package to CWG agencies

- Contingency plan or alternative option in operation

- Ideas or plans to develop one-stop-service with mobile network operators for CWG

agencies in emergency work

10

2. DBBL

Sahed Sufian Aahmud (Senior Officer, Relationship Manager) gave a presentation on DBBL’s

strengths, coverage, linkage with core bank, cash out process and costs. For its presentation file,

please see Attachment 2.

Workshop participants discussed the DBBL’s pre-arrangement with telecom networks, real-time

requirement for opening an account for a large number of beneficiaries and the lack of preparation

of Plan B in case of breakdown of network. They also asked DBBL to clarify the minimum balance

policy (Tk.20) and interest rate for savings. The other issues raised include the lack of sufficient

presence of cash agent in time and liquidity problem sometimes.

DBBL’s service and capacity is shown in below table.

Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE

DBBL


Can the delivery system be used for savings or other functions?

YES

Is the cash delivery system and / or database computerized?

YES


UNLIMITED


Soliderity int., Soliderity, ACF, WFP, UNDP, MMS, RDRS, Islamic Relief, D-net MAMA Project, URC L.L.C, ESDO etc

Account condition

What are Identity documents required by beneficiary? 1 Copy Photograph And Any valid Photo ID, KYC


Please outline of the process. 1. Disburse the amount to all beneficiaries 2. Gathering the beneficiaries in a single venue. 3. Deploy virtual agent. 4. Disburse the required amount to the beneficiaries.



5(Five) minutes



Specify any security precautions or insurance provided ( Check Digit for minimize wrong input and PIN to prevent theft or ensure money is not stolen.)

Do you sign aid agency's code of conduct for data YES

11

protection?


Do you have special policy for CSR activities? We participate in different CSR activities

Geographical coverage and accessibiliy Answer

What is the geographical coverage of your outlets/networks in the country? Is possible, please provide union-level coverage breakdown.

We have 1,08,000 DBBL agents which are covering throughout the nation. Beside this we are serving through 145 DBBL Branch, 1029 Bangladesh Krishi Bank Branch, 376 Rajshahi Krishi Unyan Bank Branch and 4500 UDSC agent.


Yes, we will create agent to the local people for expanding our service properly.


3(Three) Days

What additional cost would be involved in providing increased coverage?

NIL

What back-up systems are available to address outages? To overcome this situation we are initiation Agent Banking.


Provide DBBL agent with financial support.

Account condition

Is there any minimum balance to keep? Tk. 20/= only

Is there cost to open and shut down account? NO


Beneficiaries can withdrawal their amount in one transaction and also by multiple transactions.

Set up charges and fees Answer

Registration cost per beneficiary NIL

Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider?

* Hardware is not required for agent transaction. Because all beneficiaries are avail their cell phone. ** Our mobile banking office is well equipped with computer, scanner, UPS etc.

Are there any other administrative and overhead charges?

NO

Are there cost to activate PIN? NO

Transaction charges

Cash deposit to all beneficiary account by humanitarian agency

NIL

Cash withdrawal by beneficiary At ATM : Free, At Branch of DBBL, BKB and RAKUB: Tk 10 per TXN, At agent point : 0.9% of total withdrawal

Cash deposit by beneficiary At Branch of DBBL, BKB and RAKUB: Tk 10 per TXN, At agent point : 0.9% of total withdrawal

in store purchase NIL

money transfer Tk. 5/= per TXN

12

bill payment 1% or Tk 5/= which one is higher

balance enquiry NIL

other recurring or transaction charges Top Up: Free

For the follow-up to the workshop, DBBL officials promised to explore and seek for solution to

following actions with support from the CWG. The timeline will be given shortly in consultation with

two other service providers.

- Full processes to undertake the transfer to beneficiary with humanitarian agency

- Realistic timeline throughout the set-up and disbursement process




- Concepts or ideas on tailored service package to CWG agencies




- Challenges from working with humanitarian agencies

13

3. IFIC Bank

Md. Ariful Mazid Ronju (Relationship Manager - Corporate Sales) presented IFIC’s strengths in

comparison with others in market, which are the availability of MMT menu in Bengli, provision of

printed KYC, reduced time for activation. IFIC currently has seven divisions covered with agent

number of 23,104 with plan to increase.

IFIC brought a proposal tailored to the CWG members: free account opening, no minimum balance,

0.7% of disbursement procession fee (negotiable) and 0.8% of cash out fee (non-negotiable), the

provision of printed KYC if given excel file, the completion of registration of 5,000 beneficiaries in

one day.

Its presentation to the CWG is attached to this report (Attachment 3). Below is the current offer

from IFIC to CWG members.

Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE

IFIC


Can the delivery system be used for savings or other functions?

Yes. Send Money, All Types of Payment (Merchant Payment, Tuition Fees, Utility Bill, etc), Saving Schemes, Mobile Top Up (Upcoming)

Is the cash delivery system and / or database computerized?

Yes


Our Capacity is Flexible and can be customized according to requirements.


Not Yet

Account condition

What are identity documents required by beneficiary? Photograph and photocopy of National ID Card/Passport/Driving Licence/Any Photo ID (with prior Written Communication to Corporate Sales of IFIC Mobile Banking only for INGO Beneficiaries)


14

Please outline of the process. 1. Agreement Signing with respective INGO & IFIC Mobile Banking 2. Account Opening for Beneficiaries 3. Respective INGO will deposit the disbursement fund with agreed service fees to any IFIC Bank Branch in a specific Account Number. 4. Respective INGO will email the scanned copy of the deposit slip and disbursement details in prescribed Excel Format. 5. IFIC Mobile Banking will complete the disbursement and confirm through email to the respective INGO. 6. Beneficiaries will withdraw the money from IFIC Agent or Any IFIC Bank Branch.



IFIC Mobile Banking Part - 3 Days (1 Day for Bulk KYC Printing, 1 Day for KYC Checking and 1 Day for Bulk Activation). Process: Respective INGO will provide the beneficiary information in a prescribed Excel format which is similar to INGO Beneficiary Data Base through email. Then IFIC Mobile Banking will print the KYC forms and deliver it to respective INGO Office. Then the concern INGO will return the KYC with Beneficiary Signature and other required documents. After that IFIC Mobile Banking with check the KYC and activate the Accounts.



1. PIN Code for all Transactions 2. Instant SMS Notification for every transaction 3. Instant Account Blocking in any emergency cases calling 16255 (24/7 Contact Center) 4. Security awareness creation for using Mobile Banking Account (through campaign, training, seminar) 5. However, in case of any incident, IFIC Mobile Banking will investigate the case with high priority and resolve it.

Do you sign aid agency's code of conduct for data protection?

Yes


Do you have special policy for CSR activities? Yes

Geographical coverage and accessibility Answer

15

What is the geographical coverage of your outlets/networks in the country? Is possible, please provide union-level coverage breakdown.

District Covered-61, Upazilla & Thana Covered - 470


Yes. We are still expanding our coverage. Therefore coverage can be ensured as per requirements.


7-15 Days depending on the geographical location and business feasibility & Potentiality of IFIC Mobile Banking.

What additional cost would be involved in providing increased coverage?

None for the client. IFIC Mobile Banking will bear the cost.

What back-up systems are available to address outages? We will follow standard procedure to address outages.


1. Geographical Barriers (Poor transportation) 2. Liquidity Management for Ultra Remote Areas 3. Security in Ultra Remote Areas 4. Availability of Mobile Operators Network

Account condition

Is there any minimum balance to keep? No

Is there cost to open and shut down account? No


No. They can make multiple smaller withdrawals.

Set up charges and fees Answer

Registration cost per beneficiary Zero (0)

Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider?

All these cost will be borne by the Service Provider

Are there any other administrative and overhead charges?

No

Are there cost to activate PIN? No

Transaction charges

Cash deposit to all beneficiary account by humanitarian agency

0.70% of the Total Amount Disbursed

Cash withdrawal by beneficiary 0.80% of the Total Amount Cash Out

Cash deposit by beneficiary 0.80% of the Total Amount Cash In

in store purchase Free

money transfer Tk. 3 Per Transfer

bill payment Free

balance enquiry Free

other recurring or transaction charges None

16

As outcome of the workshop, IFIC agreed to act on following issues.







IFIC will revise the package and come up with a better one and present it to the CWG in due course.

17

Next Steps

This below is the summary of agreed actions for service providers to take.

The CWG will closely work with the companies to take the agreed actions within two months.

Key actions bKash DBBL IFIC

Full processes to undertake the transfer to beneficiary with humanitarian agency

-

Realistic timeline throughout the set-up and disbursement process

-

Breakdown of tariff and cost occurring throughout the processes

Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to share with CWG agencies

Concepts or ideas on tailored service package to CWG agencies

done

Contingency plan or alternative option in operation

Ideas or plans to develop one-stop-service with mobile network operators for CWG agencies in emergency work

Challenges from working with humanitarian agencies

Revision of proposal to CWG

18

Appendix 1. Workshop participant list

Name

Organization

Jannat Noor OXFAM

Nasir Uddin Action Aid

Seongmin Lee WFP

Siddiqul Islam Khan WFP

Mizanur Rahman Concern Universal

Dulon Gomes Christian Aid

Ripon Bhowmik Terre des homes

Mohammad Shamsuzzaman Save the Children

Kaiser Khan FAO

Gerardus Wilbers FAO

Md. Mamud Hossain Rony FAO

Poggi Valeria FAO

David Doolan FAO

Md. Abdul Quayyum OXFAM

Al-Mamun Azad Concern World Wide

Alam Mahbud bKash

Alejandro Caballero Embassy of USA

Jason Guffey Embassy of USA

Md. Noor Alam Sohel bKash

Somel Reza Khan bKash

Fazlur Rahman Danish Church Aid

Bijoy Nath Concern World Wide

Golam M Billah Islamic Relief

Akbar Kabir DBBL

Sahed Sufian Aahmud DBBL

Asad-Uz Saman IFIC

Md. Ariful Mazid Ronju IFIC

Shaker IFIC

Eun Jung Yi OXFAM

19

Appendix 2. Workshop agenda

09:00-09:30 : Introduction of workshop - opportunities and limitations

09:30-11:00 : bKash

- Presentation of lessons learned and work flow in emergency

- Finding enabling factors for partnership

11:00-11:30 : Coffee break

11:15-13:00 : DBBL



13:00-14:00 : Lunch

14:00-15:00 : IFIC



15:00-16:00 : Outlining actions for furthering engagement

END

20

Cash Working group, Bangladesh Introduction: Cash transfer has been a practice and useful tool to support disaster affected people not only in Bangladesh but around the world as well in an emergency situation. Cash transfer also been used in slow onset chronic disaster, seasonal disaster. During emergency cash transfer and vouchers can be appropriate and effective tool to support affected populations through maintaining dignity and choices for beneficiaries and boosting local economy. Hence, Bangladesh Cash Working Group (CWG) has been formed to strengthen Cash Transfer Program (CTP) for disaster response in a better coordinated and harmonized way across clusters and sectors. In the long term, the CWG aims to scale up the government social safety net to include humanitarian CTPs. The principal objectives of the CWG are: to serve as multi-sector forum with a wide range of humanitarian actors,

to promote knowledge sharing practice through coordinated research and capacity building

to coordinate and provide lesson learnt (e.g. harmonization of CTP during northwest flood)

to develop evidence-based advocacy to influence decision makers for effective CTPs in emergency.

To consider gender and protection are important aspects in CWG’s work.

Working modality of CWG Bangladesh: The Cash Working Group (CWG) has been led by Oxfam as an anchoring secretariat of the CWG Bangladesh. A Technical Coordinator has been assigned by OXFAM to coordinate and oversee the forum since August 2014.

As a whole, membership into the CWG is open but not limited to humanitarian partners.

Particularly, Representative from national NGOs, international NGOs, Government (Department of Disaster Management, Bank), relevant private sectors (money transfer agency), multi sector-clusters, Red Cross and Red Crescent Societies, Donors, and the Humanitarian Affairs Advisor Primarily organizations with previous experience in cash and voucher based interventions and those are planning to work on such kind of interventions in future.

The structure of the CWG is first, a monthly meeting convened by the Technical Coordinator to review the CTPs in the country and to carry out the Plan of Actions. Second, the Technical Advisory Group consisting of four agencies has been formed to provide the strategic direction of the CWG. Third, during initial and early emergency response ad-hoc meetings are summoned to determine CTP intervention area and set rate and size.

Currently there are more than 30 organizations who are actively participating in the CWG. Please visit the Bangladesh CWG web site below. http://www.cashlearning.org/bangladesh-cwg/bangladesh-cash-working-group

http://www.cashlearning.org/bangladesh-cwg/bangladesh-cash-working-group

Development Partner

Technology Partner

Network Partner

Regulator

Equity Partner

bKash Partners

Money in Motion

Mobile Payment + Mobile Finance + M-Commerce (Wages/Collection/Disbursement) (Loan Repayment, Insurance Premium)

bKash Services

It’s a BRAC Bank Company deals with Mobile Financial Services. Services includes:

Money transfer

Cash Out Mobile top up

Loan Repayments

Merchant Payments

Cash In ATM Withdrawal

Foreign Remittance

Payment Disbursement

For Consumers

Payment collection

For Enterprises

bKash Portfolio

bKash Collection Process

- Individual goes to bKash agent, - fill the KYC & gives required documents;

bKash agent opens account

Lead time: 4 Days (Post activation process)

Individual make payment to the company Master Wallet

bKash settle the amount in the designated bank account after deducting the Settlement Charge (%)

Beneficiary Account Opening

Corporate Collection

bKash Disbursement Process

Company Deposits Money (Principal + Cash Out Fees+ Disbursement Fees) to a designated BRAC Bank Account

Company Sends a disbursement request in a template to bKash

BRAC Bank notify to bKash

bKash converts the amount into e-money and disburse to the instructed beneficiaries after deducting the disbursement fees(%)

Beneficiary receives a text & cash out from bKash agent

- Individual goes to bKash agent, - fill the KYC & gives required documents;

bKash agent opens account

Lead time: 4 Days (Post activation process)

Beneficiary Account Opening

Corporate Disburseme

nt

1. Wallet Opening or Registration

Goes to your nearby bKash agent Fills up the registration form Submits required documents

2. Deposit Money or Cash In

Pays cash to agent Receives e-money in your bKash wallet in

exchange

3. Ready to Fly

Now customer has a bKash wallet

• At Point of Sale, the customer can only acquire service or product with bKash Wallet. • Merchant will receive a SMS instantly confirming the payment.

4. Payment to Merchant

5. Money Settlement in the Designated Bank Account

• The amount will be transferred to any bank as instructed.

Acc

ou

nt

Op

enin

g C

ash

-In

Pay

men

t A Typical Payment Flow – MerchantPlus

Our Strengths…

Customer Service

Dedicated Account Manager

Agent Coverage Widest Coverage

with Quality Services

Best Network Partner

Best Technology 135 K+ Agent

85%+ Market Share

400 + Corporate Client

Benefits of our Solutions..

Electronic Payment in least cost

Highly Secured No hassle of Change

Fastest Mode of disbursement

Easy & Better Reconciliation

Minimize Cash Carrying Risk

Benefits of

Disbursement

Solution

24/7 Transaction

Anywhere in the Country

Electronic Payment in least cost

No hassle of Fake, & Torn Currency

No hassle of Change

Incremental Sell

24/7 Online Report

Direct Bank Settlement

Benefits of Collection Solution

Easy & Better Reconciliation

Remote Payment

Thank You!!

Banking for the Unbanked

What is Mobile Banking?

Mobile Banking is a Banking process without bank branch which provides financial services to unbanked communities efficiently and at affordable cost with the help of mobile telecommunication devices i.e. mobile phone.

Cash-In/Cash-Out

Salary Disburse

Introducing DBBL Mobile Banking

DBBL Mobile Banking started its journey on 31st March, 2011 targeting delivery of financial services at affordable costs to sections of disadvantaged and low income segments of the society

A Small Step for Mankind……….

Opportunities of Mobile Banking in Bangladesh

Banking Coverage

Inward Remittance

Low Income Group

Urban Centric Banking

Domestic Remittance

Banking Coverage

Source: BTRC, BB, BBS

Only 27% Bangladeshi have bank accounts but 65% have mobile phones

Financial Inclusion

Inward Remittance

Bangladesh is 6th largest remittance receiving country in the world.

Receive remittance directly in the account.

Increase savings tendency.

Closing unofficial & unsafe channels i.e. hundi, friends & families, etc.

Low Income Group

Low income group i.e. Readymade Garments that is a $20 billion dollar industry in Bangladesh. Employing about 3.5 million people and contributing significantly to social inclusion.

Source: IFC study

Urban Centric Banking

Branch Opening Strategy Previously: 4 (Urban) : 1 (Rural) (Note: Practiced for long time) Now: 1 (Urban) : 1 (Rural) (Note: Branch opening significantly reduced as so many branch has already been opened before)

Target Unbanked Community

Existence of Unbanked Community

Resu

lts

Domestic Remittance

Fund Transfer within country

Channel used so far Channel for Now

Courier, Friends & Family, Bank (TT,DD), etc.

Mobile Banking

Time Consuming Costly

AML Issue Unsafe

Concerns

Instant Access Cheaper

No AML Issue (Account to Account)

Safe (Account to Account)

Concerns

ATM Withdrawal

Real Card-less ATM Transactions

For the First Time in the World

Check Digit

DBBL Mobile Account Number (12 digit) = 11 digit Mobile Number + 1 Check Digit

Check Digit For?

To Eliminate Mistakes/Typing Error

Security Safe

Operator Independence

A person with any mobile number from any Mobile Operator of Bangladesh can avail DBBL mobile Banking services.

We Accept

Mobile Top-Up

Mobile Top-Up with DBBL Mobile Banking

For the First Time in Bangladesh

A/C Linkage with Core Bank

• A Mobile Banking Account Holder may transfer his fund from Core Bank Account to his Mobile Bank Account.

• He/She may also transfer his fund from Mobile Bank Account to his Core Bank Account.

What DBBL Mobile Banking Offers?

DBBL Mobile Banking

Free Customer Registration

Cash - In (Deposit)

Cash - Out (Withdrawal)

P2P ( Fund Transfer)

ATM Withdrawal

Airtime Top – Up

Foreign Remittance

Merchant Payment

A/C Linkage

Salary / Payment Disbursement

Client opening their DBBL mobile account with the help of DBBL MB Officer

Corporate Office accumulate each account no. correspondent to each staff in a single excel file (as per pre-formatted excel file shared by DBBL)

Corporate Office share monthly file (pre-formatted excel) containing disbursement details with DBBL each month

DBBL disburses staff’s salary according to the Corporate Office guidelines

Beneficiaries of Corporate Clients

Corporate Clients

Client will get a notification SMS about their salary payment in to their mobile account.

Corporate Office’s appointed personnel will notified through email after ending the salary disbursement process .

Corporate Office

Corporate House

Corporate Office have to open an Enterprise account with Core Banking in order to avail Salary Disbursement service. During disbursing, this enterprise account will be debited and individual salary account will be credited accordingly.

Client can withdraw cash from any DBBL ATM, DBBL branch , BKB, RAKUB or agent point.

Salary Disbursement Charge Free

Salary Disbursement Charge : Free

Cash Out / Withdrawal By ATM

Client Visits any DBBL ATM Booth

Press Mobile Banking button on the ATM

Enter your Mobile Account Number 01XXXXXXXXXX

Customer enter his/her DBBL mobile account number on ATM

Enter Amount

1000

Customer enter amount on ATM

Enter PIN

Customer enter PIN on ATM

Customer enters his/her PIN from his/her mobile

System debits customer’s account for the same amount and dispense money, customer also get a notification message to his/her mobile

“You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN” ****

DBBL system sends prompt menu or IVR call to the customer’s mobile

****

Cash-Out from ATM Free

Cash-Out from Branch Taka 10/- Flat

Cash-Out at Agent Point .9%

Process of ATM Withdrawal

In normal (idle state) condition following screens will pop up in ATM monitor and ATM is ready for financial transaction. For withdrawal cash press Mobile Banking Button.

After pressing Mobile Banking Button at ATM, the following screen will be appeared then type 12 digits mobile account number and if it is correct press Correct button otherwise press Incorrect button.

After that following screen will be appeared and customer will enter four digits PIN (Personal Identification Number):

Now customer has to enter amount and press correct button. (If any wrong amount is given, customer may press incorrect button for a fresh entry)

Now customer will get an USSD Push/IVR call to input his/her account PIN number. If the PIN is correct, customer will get the following screen

After completion of the transaction, following screen will appeared:

If customers want to do another transaction press ‘YES’ else press ‘NO’ to exit.

ATM Withdrawal Charge : FREE

Cash Out From DBBL Branch, BKB, RAKUB Branches

Customer going to branch for cash out (withdrawal) their salary

DBBL/BKB/RAKUB Official collect the account no. and generate a SMS to the Customer

You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”


****

Customer enters his/her PIN from his/her mobile

System debits customer’s account for the same amount and branch official provide the same amount to the customer, customer also get a notification message to his/her mobile

Cash-in / Cash-out charge from Branch: Tk. 10 for any transaction

DBBL authorized Agent

Cash Out From Agent

Customer going to DBBL authorized agent for cash out (withdrawal) their deposit.

DBBL Agent collect the account no. of the Customer

DBBL Agent generate a SMS to the BGB staff Mobile for debiting the amount

You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”


**** Customer enters his/her PIN from his/her mobile

System will debit Customer’s account for the same amount and DBBL Agent provide the same amount to the Staff.

He/ She will also get a notification message to his/her mobile

Cash-out Charge From Agent : 0.9% of total Deposit / Withdrawal amount

Example: (Taka 9/- Per 1,000/-)

Type Number Nationwide Additional details

DBBL Mobile Bank

Offices

Throughout the

country

868+ DBBL owned manpower

Support Customer registration

Support all types of Customer complain related to Mobile Banking

Union Information

Service Center (UISC)

2,500+ Covering almost all the unions

Rest are expected to be completed by march ‘2015

ATMs 2,600+ Including 350 fast track

24/7 Service

Agent Points 1,11,000+ • Throughout the country covering almost all the Unions.

Merchants 3,700+ Location wise, business wise Mostly grocery, confectionary, dispensary,

cosmetics, fast-food shops

Bangladesh Kirishi

Bank (BKB) 1029 Covering all districts except Rajshahi and Rangpur Div. (16 Dist)

Rajshahi Krishi

Unnayan Bank

(RAKUB)

376 Covering all districts of Rajshahi and Rangpur Division. (16 District)

Branches of DBBL 145 Covering most of the districts

Our Coverage

Service Name DBBL Mobile Banking Other Service Provider

Customer Registration with all Mobile Network

Operators Yes No

Customer access to Bank branches Yes No

ATM withdrawal charge Free Yes

Check Digit to minimize wrong payments Yes No

Payment Disbursement charge Free Yes

Local office support Yes No

Comparison between DBBL & Other Bank

Why DBBL Mobile Banking?

Communication Channel

Handset/ Mobile Operator Independent

Three factor authentication (Check Digit, PIN & Mobile number)

Transparency

Bank- lead

Know Your Customer (KYC)

Reliable and Secured

Success Story: Case_1 (WFP Beneficiaries)

WFP beneficiaries are at the training session on DBBL Mobile Banking

WFP beneficiaries are filling up KYCs before opening their DBBL Mobile Banking account with the help of DBBL officers

WFP beneficiaries are opening their DBBL Mobile Banking account with the help of DBBL officers

Success Story: Case_2 (Hulhulia)

Hulhulia (An Ideal Village), Singra, Natore 100% Literacy rate

100% Sanitation

No Police case after 1971

200 doctors, engineers among 350 families

Own Constitution

100% Penetration of DBBL Mobile Banking

Villagers of Hulhulia are at the training session on DBBL Mobile Banking

Villagers of Hulhulia are opening their DBBL Mobile Banking account with the help of DBBL officers

Success Story: Case_3 (Garments’ Worker)

Garments workers are at the training session on DBBL Mobile Banking

Garments workers are filling up KYCs before opening their DBBL Mobile Banking account with the help of DBBL officers

Awards Received So Far……

The ComputerWorld (USA) Laureate – 2012 For Economic

Development

cash working group workshop with mobile money transfer ... · pdf filewere given a sim card...

Documents