Case on a Local Company: bKash
Methodology
We have gathered both primary and secondary data to conduct the research. For primary data, we
have interviewed two Executives of bKash, who worked in Sales and Data Analytics
departments. It was a face-to-face interview to understand and analyze the overview of the
current position of the company. We have also carried out secondary research and studied the
reviewed and news articles on bKash, MFS and DFS industry published online. After collecting
the data, we have come up with interpretations analyzing the relevant numbers, information and
percentages. Finally, we have started working on this project combining all the research analysis.
Company Introduction
bkash, a subsidiary of Brac bank now has become the simplest, safest and fastest medium of our
day-to-day’s financial transaction. The rising use of mobile phone gave the founder of bKash,
Kamal Quadir an idea to utilize these electronic devices for financial transactions. As a
consequence, it was late 2011, when a new word ‘bkash’ repeatedly started popping up on top of
our minds, starting from local storefronts to billboards to TVCs to other advertisement platforms.
Since its inception, through partnerships with all the major mobile operators of Bangladesh,
bKash's technology has allowed 98% of the country's mobile users to access its services and
facilities.
For 9 years, bKash has brought millions of unbanked and underbanked people under financial
ecosystem by providing services that are convenient, affordable and reliable. Be it *247# or App,
bKash has always made sure people have access to financial solutions ready at their fingertips
all-round the clock. bKash understands, the best use of money is in its fluidity. It creates a
universe of services that make it possible for people to do almost any kind of financial
transactions at any time from any place.
Currently, bKash is serving 42 Million customers with 230,000+ agent network nationwide. To
enable digital payments 190,000+ merchant universe is created. Till now 40% of bKash
customer base have been converted as app users which makes it the most used financial app in
the country. All these numbers tell how focused bKash has been so far in reaching out to mass
with relevant services (Mobile recharge, Pay Bill, Bank connectivity, App-in-app solutions and
many more) and effective communications.
Service universe:
It is possible to use bKash to perform financial transactions at every touchpoint from dawn to
dusk.
Mobile Financial Service Industry of Bangladesh
The Mobile Financial Services (MFS) industry has been in the country for 12 years, but the
market is yet monopolistic due to its high commission structure. Mobile financial service is a
life-changing tool to facilitate people with legitimate transaction process without the help of
conventional banking system. Anyone from urban, semi-urban and rural area can avail the
service if he/she has thee access to mobile phone network. Hence, it covers the remotest location
of a country with least possible cost incurred. This service is very effective in a country that is
geographically challenged like Bangladesh.
Backed up by Brac Bank, bKash started their Mobile Financial Service program in 2011, which
is currently the major player in the field of MFS in Bangladesh. By 2020, it has got 42 million of
customers along with 40% app users. In 2012, Dutch Bangla Bank Limited (DBBL) launched a
new platform named ‘Rocket’ specialized in mobile banking services and financial facilities
using the mobile communication network for the very first time in Bangladesh. In 2018, Nagad,
a joint venture of the Bangladesh Post Office (BPO) and Third Wave Technologies, entered the
market and grabbed second position in this market within seven months of its inception.
Moreover, 15 banks in the country are providing mobile banking services with over 1 million
agents countrywide
Figure: Share of top MFS accounts opened in April 2020 / Source: The Daily Star
By June 2020, bKash being the largest MFS provider in the country possesses 4.5 crore
registered clients this year. It holds 48 percent of market share as of today, while Nagad has
around 30 percent, Rocket around 20 percent, and others hold the rest. Given that around 50 per
cent of its population remain unbanked, MFS market has already positioned itself as a significant
market share nationwide.
Not to mention, amidst the pandemic of COVID-19, MFS has witnessed overwhelming demands
backed by the inability to make physical payments and the need for safe and secure transactions.
According to the data of Bangladesh Bank, this year, September's MFS transaction amount stood
at BDT 49,121 crore, up 18.6 per cent from that one month ago and 38.63 per cent from that one
year earlier. Moreover, digital payment methods have been facilitated by the Government to
mitigate the economic impact on the sufferers of COVID-19, which will influence the
transactions furthermore.
