mobile banking bangladesh institute of bank management mirpur, dhaka-1216. presented by md. mahbubur...
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Mobile Banking
Bangladesh Institute of Bank ManagementMirpur, Dhaka-1216.
Presented By
Md. Mahbubur Rahman Alam
B. Sc. (Statistics) Dhaka UniversityM. Sc. (Econometrics) Dhaka
UniversityPGD (ICT) BUET, M. Sc. (ICT) BUETAssociate Professor, BIBM, Mirpur,
Dhaka.
Cell: 01556323244 Mail: [email protected]
Website: mralam.net
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Many, Many Excluded
High-Income Economies
89%East Asia &Pacific
55%
Europe &Central Asia
45%
Latin America & Caribbean
39%
South Asia
33%Sub-Sahara Africa
24%
Middle East & North Africa
18%
Source: Global Findex Database, World Bank (2014)
77% of the poor excluded
Percentage of adults with account at formal financial institution
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3
Average Cost Per Transaction (1998)
USA India Bangladesh
Manual Branch Banking
$ 1.27 Rs. 256 Tk. 200
Computerized Branch Banking
$ 1.14 RS. 150 Tk. 150
Phone Banking $0.52 Rs. 15 -
ATM Banking $ 0.27 Rs. 27 Tk. 40
Mobile Phone Banking
$0.16 - -
Internet Banking $0.10 Rs. 11 -
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Average Cost Per Transaction (2013)
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Mobile Subscribers in the World
Source: ITU, 2014
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Mobile Phone Subscribers per 1000 inhabitants and by Region 2014
Source: ITU, 2014
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Share of mobile-cellular subscriptions, by level of development (2000, 2005, 2014*)
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Mobile Subscribers in Selected Countries
Source: ITU, 2014
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Top 20 Countries by Mobile Phone per 100 People
Source: ITU, 2014
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Mobile Subscribers in SAARC Countries
Source: ITU, 2014
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Mobile Phone per 100 Inhabitants in SAARC Countries
Source: ITU, 2014
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Rank Country Usage in 2014
1 South Korea 47%
2 China 42%
3 Hong Kong 41%
4 Singapore 38%
5 India 37%
6 Spain 34%
7 United States 32%
8 Mexico 30%
9 Australia 27%
10 France 26%
10 United Kingdom 26%
12 Thailand 24%
13 Canada 22%
14 Germany 14%
List of Countries by Mobile Banking Usage
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Mobile Banking Users in Europe
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Mobile Banking in US
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Features of Mobile Banking Used by Customers in US
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Mobile Banking in Developing Countries
Source: The Economist: Sep 20th 2014.
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Mobile Users in Bangladesh (in million)
Total: 131.436 Million !Source: BTRC September, 2015
42%
25%
22%
7%
1%3%
Grameen Phone Ltd. (GP)Banglalink Digital Communications Lim-itedRobi Axiata Limited (Robi)Airtel Bangladesh Limited (Airtel)Pacific Bangladesh Telecom Limited (City-cell)Teletalk Bangladesh Ltd. (Teletalk)
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Internet Subscribers (BTRC: September, 2015)
Operator Subscriber
Mobile Internet 51.982
WiMAX 0.165
ISP + PSTN 1.911
Total 54.058
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According to the BTRC the mobile subscriber base in
Bangladesh hit 131.436 million in the September
2015.
On an average (131.436 million x 12 x Tk. 150.00)
Tk. 23,658.48 Crore or (117.577 million x 12 x Tk.
300.00) Tk. 47,316.96 Crore is loaded to the Mobile
Accounts per year!
Mobile Banking? Customers are Ready!
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Purpose of Mobile Financial Services
Source: Data: PSD, BB; Compilation: FSD, BB
Innovations in cost efficient off branch financial services delivery under Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) laws and regulations
Reduce use of cash and its associated costs
Promote access to formal financial services at affordable cost especially for the poor and unbanked population segments
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Purpose of Mobile Financial Services
Source: Data: PSD, BB; Compilation: FSD, BB
Disbursement of inward foreign remittances,
Cash in/cash out into Mobile Accounts through agents/bank branches/ATMs/Mobile Network Operator (MNO) outlets.
Person to Business payments - e.g. Utility bill payments, merchant payments, deposits into savings accounts/schemes with banks, loan repayments to banks/ Nonbank Financial Institutions(NBFIs)/ Micro-Finance Institutions (MFIs), insurance premium payments to insurance companies, and so forth.
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Purpose of Mobile Financial Services
Source: Data: PSD, BB; Compilation: FSD, BB
Business to Person payments e.g. salary disbursements, dividend/refund warrant payments
Loan disbursements to borrowers, vendor payments, etc.
Government to Person payments e.g. pension payments, old age allowances, freedom-fighter allowances, input subsidy payments to farmers, and so forth.
Person to Government payments e.g. tax, fee, levy payments etc.
Person to Person payments (from one Mobile Account to another Mobile Account).
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2013 2014 2015 ( Only October)
Number of Banks Permitted 28 28 28
Started MFS Operation 19 19 20
Registered Customers 1,31,80,000 2,51,86,250 2,92,12,180
Agents 1,88,647 5,40,984 5,42,400
Number of Transactions (Millions) 228.85 589.48 106.42
Transactions ( BDT Billion ) 664 1,031.55 150.65
A Holistic View of the Mobile Financial Service Status
Source: Data: PSD, BB; Compilation: FSD, BB
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Mobile Financial Service Status (August-October, 2015)
Source: Data: PSD, BB; Compilation: FSD, BB
Serial no.
Description August, 2015 September, 2015
1 No. of approved Banks 28 28
2 No. of Banks started to convey the service 20 20
3 No. of agents 533,898 542,400
4 No. of registered clients in Lac 282.57 292.12
5 No. of active accounts in Lac 95.63 117.27
6 No. of total transaction 102,073,061 106,429,626
7 Total transaction in taka(in crore BDT) 12,841.62 15,065.75
8 No. of daily average transaction 3,402,435 3,547,654
9 Average daily transaction (in crore BDT) 428.05 502.19
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Mobile Financial Service Status (August-October, 2015)
Source: Data: PSD, BB; Compilation: FSD, BB
Serial no.
Description August, 2015 September, 2015
1 Inward Remittance 2.54 3.56
2 Cash In transaction 5,399.36 6,465.76
3 Cash Out Transaction 4,689.25 5,472.80
4 P2P transaction 2,246.05 2,492.33
5 Salary Disbursement (B2P) 119.00 146.63
6 Utility Bill Payment (P2B) 117.64 168.21
7 Others 267.78 316.47
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Volume of Transaction in Different Delivery Channels (2011-2014)
ATM
Debit Card
Credit Card
Internet Banking
Mobile Banking
Mobile Commerce
100 300 500 700 900 1100ATM Debit Card Credit Card Internet Bank-
ing Mobile Banking Mobile Com-
merce
2011 374.9 454.2 39.6 41.6 NaN NaN
2012 565.8 585 57 48.7 71.23 NaN
2013 654.3 775.7 62.7 90.5 517.83 982.1
2014 685.9 805.9 140.8 217.3 1031.55 NaN
Volume of Transaction in Billion Taka
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Demand of Time
We will not Survive
It’s a CSR
Introduction of Micro Credit and Micro Savings
Will increase and Diversify Banking Business
Minimize usage of cash, its cost and fake note
Will be profitable in the long run
New job market will be created
Reduction of administrative cost
Government, MNOs and Agents will be benefited highly
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Economic Benefits (CTOs’ Opinion)
Source: BIBM Survey
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Customers’ Awareness and Readiness
0% 10% 20% 30% 40% 50% 60% 70% 80%
I see no value in using it
I don't believe it is safe
I don't want to pay for it
I don't have enough knowledge about it
I don't know how much it would cost
I don't know whether my bank offer it
It is complicated to use
My bank does not offer it
I can't find enough information about it
I like to visit bank branch/ATM
My cell phone is not enough for banking
I dno't know what is mobile banking
I want to enjoy it
I think It will help to grow savings habit
I believe it will help to eliminate corruption
Source: BIBM Survey 2011.
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Economic Benefits
Bank will get a large amount of
deposit without paying interest
Lowest transaction cost
Revenue for MNOs
Credit through mobile channel will
be increased
More Information less fraud (Less
fraudulent transaction)
Less time and cost for transaction
Bank at door step/hand
Less administrative cost
New employment
Less transportation cost
Reduction of corruption
Govt. revenue will be
increased
New business development
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Roles of Government
Govt. may take initiatives that all govt. collections, subsidies and allowances
will be distributed and collected through mobile banking channels.
This will create an indirect pressure and encourage the people to open and
operate a mobile bank account.
Corruption and hassles of govt. agencies will also be eliminated.
Govt. may help through govt. media like ‘BTV’ or ‘Bangladesh Betar’ to
encourage people to achieve the mobile banking target.
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Role of BB
Regulatory Framework
Payment Gateway
Audit and Monitoring
Liaison with Govt. to help for the adoption of MB.
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32
Mobile Banking Problems
Awarness/Illiteracy of Customers
Providing Security
Marketing
Help Desk support
Increased Fraud
Cash Management
Model Selection
Ensuring KYC information
Application Specific Handset
Non Cooperation of Telco
Agent Selection/Management/Training
Reveneu Sharing
0 10 20 30 40 50 60 70 80 90 100
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?Questions
are Welcome