Page 24 - IBT December 2020

Cover Focus
Revolutionizing
FinTech
By Marjiya Baktyer Ahmed
Tanvir A Mishuk is regarded as a
torchbearer of digital nancial
inclusion. He is a visionary with a
steadfast commitment to excellence in
managing numerous business ventures
in the country that also helps to
transform a good number of traditional
businesses. He has had tremendous
DIGITALIZING success in transforming business and
BANGLADESH adopting a culture of data-driven
POST-OFFICE decision making.
Using state-of-the-art technology –
As of 2018, the percentage of Nagad – the fastest-growing mobile
the unbanked clocked at over 65
percent of the population relying nancial service provider in Bangladesh
heavily on age-old-traditional ushered in a new era, which has been
services. Internet banking had dubbed by industry observers as the
just started off shooting as a second age for the mobile money
concept but didn’t appeal to industry. This new innovation has
users due to its complex opened the door for anyone to easily
user-interface. While internet activate a wallet account and enter the
banking was in its nascent digital world where they are free to
stage, the Mobile Financial
Services (MFS) sector was pursue their whims through the
booming rapidly. convenience of their smart devices.
With his hands-on experiences Mishuk is known as the disruptor of the
of Singapore’s dynamic business box and has been instrumental in
environment and his agile bringing in the second wave of Fintech
thinking and analytical ability, in Bangladesh. With his keen foresight
it was time for Mishuk to march he has maximized digital nancial
into new territories – a new literacy, widespread smartphone
industry where lack of
awareness, poor outreach, and penetration in Bangladesh ensuring the
evident barriers of monopoly country’s reputation as one of the
was ruling. Mishuk approached world’s leading FinTech hubs. Following
the officials of Bangladesh Post that revolutionary path Nagad also
Office and Ministry of Posts, earned some global attainments.
22
SPEARHEADING UNDERSTANDING THE With its massive technological innovati
INNOVATING TECHNOLOGY NEEDS OF THE UNBANKED Nagad also appeared as a disrupter and
already introduced the lowest service c
significant portion of the country’s population. through innovative intrusion. As the DFS some other transactions free; which als
Formal banking does not account for a
The motto at Nagad has been financial inclusion
Tk 9.99 for cash-out Tk 1,000 and also
provider grew and continued progressing, Nagad
This works as an obstacle in ensuring inclusive
helped the carrier to secure as a secon
banking. Mishuk says, “I believe the lengthy
added another tool to cater to the unbanked.
player with 30 percent market share.
process is the biggest deterrent to the Any Phone Number) technology Nagad primed A PROMISE TO KEEP
With the introduction of SMTAP (Send Money to
and convoluted paperwork involved in the
proliferation of formal banking in Bangladesh.
themselves to initiate the unbanked into the
PROSPERING
world of digitalization and digital banking.
We have to make this process more accessible
Digital revolution has changed the grow
Mishuk explains, “We introduced a service
for everyone,” he further states, “We have to
pace of Bangladesh in recent years. Wit
where customers can get money even if they
make this process more accessible for everyone.
vision to transform Bangladesh into a
Also, it will not be feasible to include the entire
haven’t got a Nagad account. We ensured total
population into formal banking.”
knowledge-based economy by 2041, the
facilitated opening accounts within a minute”.
On 23 February 2019, amidst much anticipation
Digital Bangladesh program was launched
Nagad’s SMTAP technology allows transfer of
Nagad launched the Digital KYC Registration. It freedom in sending and receiving money and country of digital economy by 2021 and
has been introduced to ensure a hassle-free money to non-users, where ultimately the 2009. Nagad as a Digital Financial Serv
process for the customers. It will also ensure receiver has to open a Nagad account to cash (DFS) company is working to materialize
that there will be no chance of duplication and out the sum. The recipient can cash out the vision of a Digital Bangladesh by
fraud. To complete this process, customers are money at more than 0.16 million retail points of maximizing revenue for its partners by
required to bring their national ID card and Nagad and register at their own convenience. marketing digital financial and other
associated products and services to the
registered mobile phones. Pictures of the This is a very effective feature to convert population. They are ensuring complianc
customer and the ID will be taken immediately
non-users to users. This also makes it easier to
and cross matched with the Election send remittance and government disbursements and better customer experience thus
Commission Database in real time through directly to the end users who do not currently contributing to the financial inclusivi
artificial intelligence. The respective field of the fall under the purview of a formal financial socio- economic development of the coun
Telecommunications and KYC form will be filled up by an automated service Access to financial services is vital f
Information Technology. scanning process extracting information for the The DFS provider has teamed with the creating and accelerating sustainable
After numerous bona fide NID. The whole process will be concluded within telecommunication industry and created a economic growth, creating employment an
encouraging people's personal and socia
screenings, his proposal was
conceded and shortly after less than 30 seconds per customer. historical milestone by launching ‘One Tap development. Financial inclusion is an
Account Opening’ to convert the customer base
Lengthy and convoluted paperwork involved in
that, he launched “Nagad” the process is the biggest deterrent to the of the Top Two mobile phone carriers of the enabler and accelerator of economic gro
with the collaboration of proliferation of formal banking in Bangladesh. country ‘Grameenphone’ with 74 million job creation and development. Affordab
access and use of financial services he
Bangladesh Post Office- the
first-ever Digital Financial To include the entire population under the subscribers’ base and the ‘Robi’ which has more families and small business owners to
than 50 million customers base. Currently,
umbrella of formal banking, Nagad’s Digital
Services (DFS) of the country. KYC Registration is digitalizing the process and Nagad is in the process to have about 130 generate income, manage irregular cash
From the very beginning, making banking accessible. million customer base by converting MNO flow, invest in opportunities, strength
Nagad has realized the need (Mobile Network Operator) subscribers and they resilience to downturns, and work their
of the industry and has have been brought under the umbrella of out of poverty.
started opening its wings to financial inclusion. Today, Nagad stands as the second-large
serve the users. Mishuk As a result, potential users don't need to visit DFS provider in Bangladesh having bagge
explains, “My quest for a agents with their national identification number the WITSA 2020 Digital Innovation Award
solution to the problems led and photographs to open an account as mobile and Inclusive Fintech 50 Award for thei
me to the Bangladesh Post phone operators already have their users innovative and inclusive FinTech soluti
Office. I realized, they have registered with their NID and biometric This magnificent rise of Nagad and its
the most extensive logistics authentication. So any interested users can open aspiring trajectory has been attained b
network in the country and Nagad account only couple of seconds just by relentless efforts and persistence of T
they have been working with dialing *167# from their mobile handset and Mishuk, a man with a bright idea who
payments for more than 200 setting up the four-digit PIN number. ushered in the second wave of FinTech.
years. We decided to This efficient and effective account opening With this massive success Nagad is now
approach them with our idea system would help the MFS sector to take a seriously considering moving on to
and after getting a positive major leap forward. Of all the accounts currently expanding its service into a new horizo
response (as they eagerly being opened by Nagad, 85 percent are done introducing digital banking service in
wanted to do something through the short-code. Since its inception country as the first DFS entity. The
digitally) we decided to Nagad has managed to bring about 25 million vanguards at Nagad have taken all-out
partner up to provide the people under the umbrella of digital financial preparation and are now waiting for
most extensive payment and services and has recorded daily transactions regulatory approval which can uplift th
logistics solution in the worth BDT 1.50 billion daily. country into a new dimension of digital
country.” service.