How MFS acts as the green catalyst in Bangladesh's financial ecosystem

Paperless transactions are faster, cheaper, accurate and transparent which at the same time enable customers to take part in environmental conservation

Climate change is considered one of the significant global challenges of the 21st century that demands urgent action across all industries. When it comes to the financial sector, financial technology (FinTech) companiesare leading the global efforts to reduce carbon footprint, both within their own operations as well as customers' value chains. In Bangladesh, Mobile Financial Service (MFS), introducing innovative digital financial solutions, has taken the charge towards a greener future in the financial ecosystem by reducing its own carbon footprint as well as enabling customers to adopt more sustainable practices.
Green transformation involves implementing policies and strategies that promote environmental, social, and economic sustainability. It encompasses initiatives like energy efficiency, reducing carbon emissions, resource conservation, minimising environmental degradation and last but not the least, community engagement.
In Bangladesh, MFS providers like bKash has been playing instrumental role in driving cashless journey to achieve financial inclusion that eventually helped adapting green transformation through innovative products and services. Since inception, bKash has focused on financial inclusion of unbanked and underbanked population by ensuring their access to essential financial services. Empowering customers to access financial services even through simplest mobile phone from the comfort of home, bKash has meaningfully reduced the need for physical currency, which evidently reduced carbon footprint in daily transactions. Over the years, MFS industry has also contributed to a behavioural shift among the customers towards cashless lifestyle by providing products and services that are secure, convenient and easy to use.
Simultaneously, bKash has been developing an ecosystem for digital transactions through collaboration with commercial banks, financial institutions, utility services providers, telecom operators, government service providers, etc. Such broader ecosystem has been stimulating overall green transformation of the country's financial sector by limiting need for commuting from one service providers to another and cutting use of paperwork, thus, consuming less energy that results in lower carbon release.
A decade ago, it was normal for majority of the people to travel long distances spending time and money, particularly in the countryside, to avail a simple financial transaction, for say, paying utility bills. However, it is no more a case, because people now can pay bills through their bKash account in seconds without even setting their foot outside home. Like this, the leading MFS provider, in addition to its own products, has integrated financial tools and services of different banks, financial institutions and other service providers in its platform, enabling the customers to embrace wider digital lifestyle. Aligned with the global agenda of net zero emissions, such lifestyle greatly cuts emissions and use of papers, mitigating carbon footprint in customers' daily life as well as service provider's operation, as they need fewer physical infrastructure and human engagement to provide services. As digital lifestyle saves time and energy, one can concentrate more on livelihood as well as manage time to pursue passion, resulting in better productivity.
bKash has introduced financial products, such as 'digital loan', 'pay later', weekly and monthly DPS in collaboration with commercial banks, which customers can avail in paperless manner. Paperless transactions are faster, cheaper, accurate and transparent which at the same time enable customers to take part in environmental conservation. Instead of paper receipt, customers get digital receipt for every transaction through bKash. To make the concept of digital payments sustainable, the MFS provider has developed a network of over 850,000 merchant points across the country where businesses can accept payments through paperless and contactless QR code scanning, promoting overall green transformation of payment industry.
It can be said that FinTech companies like bKash has emerged as powerful ally in the fight against climate change by practicing green transformation in daily operation. By providing innovative financial solutions, promoting sustainable consumption, and improving the efficiency of financial systems, companies like bKash can contribute more in sustainable and environment-friendly future.