Page 34 - ICE BUSINESS TIMES February 2020

Technology
FinTech,
Made in
Bangladesh
The techie with a vision, Dr. Shahadat Khan
candidly talks about the homegrown FinTech
brand SureCash, while articulating how we can
harness technology and data driven e ciency
to spread nancial services across the country.
By Marjiya Baktyer Ahmed
What is FinTech and what is the future of
FinTech in Bangladesh?
FinTech, in short for Financial Technology, means
using technology for financial services. We live in
the era of information technology (IT). IT has made
big changes and influence in all aspects of our lives
such as the way we communicate, entertain
ourselves, consume media etc. FinTech brings in a
lot of possibilities in providing and improving these
financial services. For example, in Bangladesh 98%
people use mobile phones, more than 92 million
people use the internet, but only 25% people have
bank accounts. One use of FinTech is Mobile
Financial Services (MFS), which started about 9
years ago in Bangladesh and we are already one of
the leading countries in the world serving more
than 80 million customers. Customers are sending
money, paying bills, recharging our mobile phones
using MFS. However, we have achieved less than
10% of what FinTech can do for the people of
Bangladesh. We expect to see more expansion of
these services and usage in areas such as deposits,
savings, credits, insurance and simple QR code
based payments.
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Few areas where SureCash is unique is in the payments and we will have a less cash society.
digitization services. For example, in close cooperation with have seen early signs of that in
Rupali Bank, we are doing stipend disbursement under proliferation of FinTech will
some parts of the world but the
the Ministry of Primary and Mass Education (MoPME) and
which 10 million mothers in 80,000 villages get stipends all
definitely improve that significa
over the country. This has helped to increase the attendance
Being able to do your transaction
of the primary school students and empower women across
from your own phone without
the country by providing digital bank accounts. Under this
requiring any POS machine, makes
project 67,000 primary schools have been digitized. This is it very simple and easy to adopt
the largest payment digitization project in Bangladesh
scale in a country like Banglades
inaugurated by Honorable Prime Minister Sheikh Hasina on
For example, if you look at some
the developments in China and
1 March 2017 and we’re very fortunate to be a part of this
India, a lot of the day-to-day
We have also created software-based solutions for 15
transactions, such as grocery
government sugar mills managed by Bangladesh Sugar &
Food Industries Corporation, where the whole process of payments and bus tickets are all
procurement and payment system is automated. Now,
paid just by scanning a QR code
12,000 sugar cane farmers are paid on time with the help of
using the phone.
streamlined, transparent and efficient payment process.
As the use of smartphones grows i
Bangladesh, from the current leve
Why develop FinTech software inhouse instead of
getting quality software from renowned vendors? of 30% penetration, we will see m
people using smartphone based
Being a tech person, it is natural that we will develop our payments and reducing reliance on
From the country perspective, this own software solution. When you want to provide digital cash.
financial services in a country like Bangladesh, you want to
enables providing services to 75% develop solutions which are suitable for its people and When it comes to using
unserved and underserved population. cultural context, and for that we need flexibility and control technology, how do we ensure
Expanding financial services will which is only possible through inhouse development. security so that consumers are
empower common people and SMEs
thus improving their quality of life I have worked with the local talents and I know that we can more encouraged to become
which will drive economic growth of develop very good solutions which are flexible, scalable and cashless?
the country. cost effective. Because sometime in the near future if you Of course, when we talk about
want to have a technology to be used by 100 million people, technology, one needs to think
What is SureCash? Please tell us it will be very expensive. Development using local talents about security as well. Whenever
more about its services. will be cost effective and investment friendly. talk about financial services, we
Furthermore, having our own technology gave us a lot of
SureCash is a leading FinTech brand need to talk about risks and secu
flexibility and strengths in providing services much beyond and FinTech is not beyond that.
in Bangladesh. We are serving more the MFS business. As I’ve mentioned earlier, we provide
than 20 million customers, and 1,000 custom based software solutions to different education and Security should start with the
payment partners in partnership with agro sectors to digitize their system which enhances customers- like customer
4 banks in Bangladesh, including one operational efficiency and end user Bangladesh including Rupali Bank, awareness, and them being careful
of the largest public banks, Rupali experience. one of the largest state-owned about securing their phones and
Bank. We offer comprehensive mobile banks in Bangladesh. With PINs. It will always be that youn
banking and payment services such What do you think about the software and technical support people are more comfortable with
as person-to-person transfers, bill Bank-FinTech collaboration in from SureCash, the bank launched technology than older people. But
payment and education payment. respect to industry? Rupali Bank SureCash - a the rural areas we face the bigge
Customers can cash in/out at more comprehensive mobile financial problem. There is an uncertainty
than 180,000 retail agents FinTech enables creating new services for mass people in people being able to read our
nationwide. customers for financial services and Bangladesh. Here, SureCash is messages or not. Therefore, every
We have developed a digital payment new products and services for providing software and technology time you do a transaction, you ge
platform technology and software that existing customers and businesses. for customers as well as an SMS in Bangla. So, all of us n
is used for SureCash services. The On the other hand, banks form the distribution support for retail to work together to increase
software is developed in-house by foundation of the financial system agents. Our experience working people’s comfort and confidence f
young engineers of Bangladesh in a country. Banks and FinTech with banks is very positive and we digital financial services.
bearing the desires and needs of the organizations have a great still have a long way to go. As for the providers, we need to
people of Bangladesh in mind. Having opportunity to collaborate and concerned with the security risks
our own technology helps us to add benefit from the business How far are we from and employ the latest security
new products and services quickly, expansion. becoming a cashless society? measures available.Collaboration
customize for new use cases, and SureCash is a very good example of all stakeholders including
integrate easily with external a Bank-FinTech collaboration. We It is very difficult to say when we Bangladesh Bank, relevant
payment partners. are working closely with 4 banks in will have a cashless society, but we government departments such as
know for sure that in a few years