Page 27 - IBT December 2020

SPEARHEADING UNDERSTANDING THE With its massive technological innovation
INNOVATING TECHNOLOGY NEEDS OF THE UNBANKED Nagad also appeared as a disrupter and
already introduced the lowest service charge
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 made
significant portion of the country’s population. through innovative intrusion. As the DFS some other transactions free; which also
This works as an obstacle in ensuring inclusive provider grew and continued progressing, Nagad helped the carrier to secure as a second
banking. Mishuk says, “I believe the lengthy added another tool to cater to the unbanked. player with 30 percent market share.
and convoluted paperwork involved in the With the introduction of SMTAP (Send Money to
process is the biggest deterrent to the Any Phone Number) technology Nagad primed A PROMISE TO KEEP
proliferation of formal banking in Bangladesh. themselves to initiate the unbanked into the
We have to make this process more accessible world of digitalization and digital banking. PROSPERING
for everyone,” he further states, “We have to Mishuk explains, “We introduced a service Digital revolution has changed the growth
make this process more accessible for everyone. where customers can get money even if they pace of Bangladesh in recent years. With the
Also, it will not be feasible to include the entire haven’t got a Nagad account. We ensured total vision to transform Bangladesh into a
population into formal banking.” freedom in sending and receiving money and country of digital economy by 2021 and a
On 23 February 2019, amidst much anticipation facilitated opening accounts within a minute”. knowledge-based economy by 2041, the
Nagad launched the Digital KYC Registration. It Nagad’s SMTAP technology allows transfer of Digital Bangladesh program was launched in
has been introduced to ensure a hassle-free money to non-users, where ultimately the 2009. Nagad as a Digital Financial Services
process for the customers. It will also ensure receiver has to open a Nagad account to cash (DFS) company is working to materialize the
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
registered mobile phones. Pictures of the This is a very effective feature to convert associated products and services to the mass
customer and the ID will be taken immediately non-users to users. This also makes it easier to population. They are ensuring compliance
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 inclusivity and
artificial intelligence. The respective field of the fall under the purview of a formal financial socio- economic development of the country.
Telecommunications and KYC form will be filled up by an automated service Access to financial services is vital for
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 and
screenings, his proposal was less than 30 seconds per customer. historical milestone by launching ‘One Tap encouraging people's personal and social
DIGITALIZING conceded and shortly after Lengthy and convoluted paperwork involved in Account Opening’ to convert the customer base development. Financial inclusion is an
BANGLADESH 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 growth,
POST-OFFICE with the collaboration of proliferation of formal banking in Bangladesh. country ‘Grameenphone’ with 74 million job creation and development. Affordable
access and use of financial services helps
Bangladesh Post Office- the
As of 2018, the percentage of 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
the unbanked clocked at over 65 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
percent of the population relying From the very beginning, making banking accessible. million customer base by converting MNO flow, invest in opportunities, strengthen
heavily on age-old-traditional Nagad has realized the need (Mobile Network Operator) subscribers and they resilience to downturns, and work their way
services. Internet banking had of the industry and has have been brought under the umbrella of out of poverty.
just started off shooting as a started opening its wings to financial inclusion. Today, Nagad stands as the second-largest
concept but didn’t appeal to serve the users. Mishuk As a result, potential users don't need to visit DFS provider in Bangladesh having bagged
users due to its complex explains, “My quest for a agents with their national identification number “We introduced the the WITSA 2020 Digital Innovation Award
user-interface. While internet solution to the problems led and photographs to open an account as mobile and Inclusive Fintech 50 Award for their
banking was in its nascent me to the Bangladesh Post phone operators already have their users service where innovative and inclusive FinTech solutions.
stage, the Mobile Financial Office. I realized, they have registered with their NID and biometric This magnificent rise of Nagad and its
Services (MFS) sector was the most extensive logistics authentication. So any interested users can open customers can get aspiring trajectory has been attained by the
booming rapidly. network in the country and Nagad account only couple of seconds just by money even they relentless efforts and persistence of Tanvir. A
With his hands-on experiences they have been working with dialing *167# from their mobile handset and Mishuk, a man with a bright idea who
of Singapore’s dynamic business payments for more than 200 setting up the four-digit PIN number. haven’t got a Nagad ushered in the second wave of FinTech.
environment and his agile years. We decided to This efficient and effective account opening With this massive success Nagad is now
thinking and analytical ability, approach them with our idea system would help the MFS sector to take a account. We ensured seriously considering moving on to
it was time for Mishuk to march and after getting a positive major leap forward. Of all the accounts currently total freedom in expanding its service into a new horizon by
into new territories – a new response (as they eagerly being opened by Nagad, 85 percent are done introducing digital banking service in the
industry where lack of wanted to do something through the short-code. Since its inception sending and receiving country as the first DFS entity. The
awareness, poor outreach, and digitally) we decided to Nagad has managed to bring about 25 million vanguards at Nagad have taken all-out
evident barriers of monopoly partner up to provide the people under the umbrella of digital financial money and facilitated preparation and are now waiting for
was ruling. Mishuk approached most extensive payment and services and has recorded daily transactions opening accounts regulatory approval which can uplift the
the officials of Bangladesh Post logistics solution in the worth BDT 1.50 billion daily. country into a new dimension of digital
Office and Ministry of Posts, country.” within a minute” service.

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