Agrani Bank to launch remittance cards for expats
Tuesday, 2 June 2009
A Z M Anas
Agrani Bank has struck partnership with a local private company to introduce an electronic card that would allow rural recipients to draw remittances in a faster way, officials said Sunday.
The country's third largest state lender has contracted out Cask Link, an electronic banking solutions leader, to design the "Probashi Remittance Card," which will enable family members of Bangladeshi migrants to receive money even in far-flung areas, they said.
"It's going to cut uncertainty factors," Fida Huq, chief operating officer of Cash Link, said.
"We aim to launch the card early next month. The card will enable nominated persons of a migrant worker to draw money from the bank's designated branches", he added.
Agrani's move comes at a time when state-owned banks are fast losing their dominance over the country's multi-billion dollars remittance market.
Last year, Bangladesh was among the top 10 recipient nations in developing world as far as remittance receipt was concerned, according to the World Bank.
Cash Link, majority controlled by a group of local banks, is a dedicated company involved in electronic banking, backed by ATMs (Automated Teller Machines) and PoS (Point of Sale) terminals.
Agrani will issue the card for a charge of Tk 100 before a potential overseas job-seeker leaves the country for the destination nation and the nominee can use it, officials involved in the process said.
The nominee of migrant workers will be able to draw money from the nearest bank branch by using the card, Mr Huq said.
With 876 nationwide branches, experts say Agrani is well-placed to deliver remittances at the remotest corners of the country.
Last year, Bangladeshi workers remitted US$ 9.0 billion in remittances, but bankers say the bulk of it came in trickles.
Some 60 per cent of Bangladeshi remitters fall into the category of retail remitters, with each transfer often not exceeding Tk 50,000.
Bangladesh's remittance flow set new record in 2008, helped by 875,000 overseas jobs.
This year's outlook is also promising and the Bangladesh Bank officials expect the flow to reach $ 10 billion.
Money sent home by an estimated 6.3 million Bangladeshis and millions others who live and work abroad is only second its exports. It also surpassed the overseas aid and foreign investments combined.
A Cash Link top official said the company plans to install PoS terminals in as many as 200 Agrani branches by the end of this year.
Cash Link officials said it would also supply POS terminal to 125 BURO branches across the country.
The terminals will be able to accept card transactions for processing remittance payments and other purpose of CBL member and non-member banks' cards.
The company will provide transaction processing services and complete package end-to-end solutions for payment automation and rollout of Electronic Fund Transfer Point-of-Sale.
Agrani Bank officials are hopeful that the new deal would allow it to significantly scale up its shares in the competitive remittance market.
Agrani Bank has struck partnership with a local private company to introduce an electronic card that would allow rural recipients to draw remittances in a faster way, officials said Sunday.
The country's third largest state lender has contracted out Cask Link, an electronic banking solutions leader, to design the "Probashi Remittance Card," which will enable family members of Bangladeshi migrants to receive money even in far-flung areas, they said.
"It's going to cut uncertainty factors," Fida Huq, chief operating officer of Cash Link, said.
"We aim to launch the card early next month. The card will enable nominated persons of a migrant worker to draw money from the bank's designated branches", he added.
Agrani's move comes at a time when state-owned banks are fast losing their dominance over the country's multi-billion dollars remittance market.
Last year, Bangladesh was among the top 10 recipient nations in developing world as far as remittance receipt was concerned, according to the World Bank.
Cash Link, majority controlled by a group of local banks, is a dedicated company involved in electronic banking, backed by ATMs (Automated Teller Machines) and PoS (Point of Sale) terminals.
Agrani will issue the card for a charge of Tk 100 before a potential overseas job-seeker leaves the country for the destination nation and the nominee can use it, officials involved in the process said.
The nominee of migrant workers will be able to draw money from the nearest bank branch by using the card, Mr Huq said.
With 876 nationwide branches, experts say Agrani is well-placed to deliver remittances at the remotest corners of the country.
Last year, Bangladeshi workers remitted US$ 9.0 billion in remittances, but bankers say the bulk of it came in trickles.
Some 60 per cent of Bangladeshi remitters fall into the category of retail remitters, with each transfer often not exceeding Tk 50,000.
Bangladesh's remittance flow set new record in 2008, helped by 875,000 overseas jobs.
This year's outlook is also promising and the Bangladesh Bank officials expect the flow to reach $ 10 billion.
Money sent home by an estimated 6.3 million Bangladeshis and millions others who live and work abroad is only second its exports. It also surpassed the overseas aid and foreign investments combined.
A Cash Link top official said the company plans to install PoS terminals in as many as 200 Agrani branches by the end of this year.
Cash Link officials said it would also supply POS terminal to 125 BURO branches across the country.
The terminals will be able to accept card transactions for processing remittance payments and other purpose of CBL member and non-member banks' cards.
The company will provide transaction processing services and complete package end-to-end solutions for payment automation and rollout of Electronic Fund Transfer Point-of-Sale.
Agrani Bank officials are hopeful that the new deal would allow it to significantly scale up its shares in the competitive remittance market.