With the digital-first methodology, not just has FinTech made new and creative methods of communicating with existing and potential clients to broaden banking administrations, for example, investment consultancy regularly reserved for the rich, to everybody, yet in addition, emerge as a lifestyle upgrade for the younger generation.
Bangladesh’s digital landscape changing mobile financial service platform ‘Nagad’ is set to transform branch banking into digital banking to meet the ever-increasing needs of fast-service in the digitized world with low expenditure and minimum yet efficient workforce.
Nagad – a dream-cum-reality is a Mobile Financial Service (MFS) platform of the Bangladesh Post office; since its inception in 2018 has acquired around 35 million users and is set to obtain a banking operations license.
The Revolutionary Vision of Nagad
The vision behind establishing Nagad was to overcome one of the biggest issues of ‘Payment and Delivery, and with Bangladesh Post office’s extensive network and exhaustive work experience, it was imperative to collaborate and initiate a joint venture.’
Tanvir A Mishuk, managing director and the man behind the vision, embarked on transforming the E-Commerce sector by digitizing it. For Mishuk, ‘the biggest hurdle in acquiring MFS market [was] viable and sustainable business plan and reshaping the traditional outlook of individuals, clients, and partners towards change from traditional to digitized transactions that were safer than manual ones.’
Tanvir Mishuk, as a Fintech visionary, is a member of Dhaka Chamber of Commerce & Industry (DCCI) and Bangladesh Business Chamber of Singapore. As the former Director and CEO of Sigma Group and Sigma Telecom Limited, Mishuk indulged in transforming the International Telecom Gateway (IGW) business, making it simpler for individuals to communicate over the internet.
The zealous entrepreneur was granted Financial Technology Man of the Year 2020 by ICE Business Times to praise his contribution to the realm of Fintech in Bangladesh. Mishuk additionally made it to the list of Inclusive Fintech 50 cohort list in 2020 for innovation in the Fintech industry in promoting financial inclusion. In 2019, Tanvir Mishuk was celebrated for his outstanding contribution to Technological Development in Bangladesh. And his innovative approach of easy customer acquisition process only by dialing *167# from any mobile network carrier in the country, within few seconds, also honored by the World Information Technology and Services Alliance (WITSA). Mishuk is being honored by so many organisations for his innovative approaches that also starts the milestone with introducing the digital KYC in Bangladesh’s financial industry.
Financial Achievements OfNagadAnd The Time Frame
Within a brief period,Nagad has been successful in acquiring millions of users in a cost-effective manner. For emergency proceedings,setting up and using post office branches as customer-carecenters approximately 10,000in number accounted for the reduction in companies’ expenditure.With cost-effective methods, MFS is set to become one of the fastest-growing MFS in the world. Mishuk further added,‘If we [Nagad] are able to maintain the pace, we will soon be acquiring 50% market share in the fiscal year of 2021.
Cyber-Crime And Security Risks – Nagad’s Security Features
With advancements in technology, it is probable that there may be cyber thefts. However, such thefts are on the service-users end. Due to lack of awareness,the customers share the Personal Identification Number (PIN) and One-Time Passwords (OTP),which is then used illegally by perpetrators to get hold of the account and make unsupervised transactions. Mishuk added, ‘MFSuses up-to-date cyber protection, and there haven’t been any reported incidents on the hack. Nagad is technically advanced, and it is not easy to break into [their] system. All we need right now is to strengthen service-users by imparting awareness on cyber-crime’.
‘All our customers’ identity is also digitally verified that is also an strength of Nagad to protect the theft,’ Mishuk, the change market of the digital transaction service of the country, also showed his confidence.
‘Shob Hobe Nagad-e– Everything is possible with Nagad’ is a campaign initiated by Nagad to increase its digital financial inclusion and ensured the digital life for all walks its users. When they have launched its commercial service they have also started with an impressive campaign ‘Pābēnabēśidēbēnakama – Get more, give less’ to attract customers by keeping the cash-out charge to the lowest in the country – a mere TK 14.50 per thousand and a TK 5.00 per thousand for cash-in. Nagad later remodify their offers and bring the charge of cash-out, a popular service in Bangladesh, to half of the market rate and that also help them to get popularity.
Lately, an MoUhas been signed betweenNagad andRobi – the second largest mobile network operator companyof Bangladesh and a sister concern of Axiata Group Berhad, of Malaysian,to add the existing users to the latter’s financial umbrella.With that deal, customer onboarding become very ease which also signed with other mobile carriers as well including the market leader Grameenphone – majority hold by one of the top global telecom service provider Telenor Group.
The Bottom Line
With the boom in Fintech, the reality of finance in Bangladesh will no longer operate as one block of mortar banks or investment firms working off a spreadsheet. As FinTech companies and financial innovators like TanvirMishuk compete to satisfy market needs, different fledgling organizations keep on molding the fate of finance and lead trends in the niche.