Bangladesh's mobile financial services (MFS) have witnessed a decrease in transaction volume in recent times.
Overall MFS transactions and inward remittances via the MFS channel reported nearly 1.0 per cent and 2.16 per cent declines respectively in November 2023, according to the Bangladesh Bank data.
In contrast, the number of transactions was 542.07 million in November compared to 573.27 million in October, representing a 5.44-percent decline in transaction volume for November.
MFS witnessed such a decline in November, with the total transaction volume reaching Tk 1.19 trillion in November, compared to Tk 1.20 trillion in October last year, the data show.
Expatriate Bangladeshis sent a total of Tk 5.52 billion in remittance in November whereas it stood at Tk 5.64 billion in October.
MFS statistics are compiled considering both "Nagad" and "MFS through Scheduled Banks", for instance bKash, Rocket, Upay and so on.
MFS accounts offer a versatile range of functionalities, allowing users to withdraw funds, conduct person-to-person transfers, top up mobile balances, settle utility bills and education fees and make payments to merchants.
An official at Nagad on condition of anonymity said there was a minor decrease in total MFS transactions without mentioning the exact reason of such a decline.
Nevertheless, they anticipate a surge in these transactions in the upcoming days, particularly leading up to the holy month of Ramadan and Eid-ul-Fitr, he said.
When addressing the decline in remittance inflow, the official pointed to market instability and a lower dollar rate in formal channels compared to informal ones as contributing factors.
A total of 220.09 million accounts were registered in November whereas it was 217.71 million in October, marking a 1.09-percent increase.
The statistics compiled from both "Nagad" and "MFS" through scheduled banks.
The number of MFS accounts is 220.09 million of which 97.31 million is in urban areas and 122.78 million is in rural areas in November.
The float amount in the month of November is Tk 106.21 billion, marking a 5.22-percent decline, the BB data show.
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