Mobile banking transaction dips over 21pc in July
Internet shutdown to curb student-mass movement primarily caused the decline
FE REPORT | Saturday, 14 September 2024
Mobile banking transaction in Bangladesh dropped by over 21 per cent in July, primarily due to several days of internet shutdown and slowdown aimed at curbing the anti-discrimination student-mass movement.
According to the central bank's data, Tk 1.23 trillion was transacted through mobile banking in July. In comparison, Tk1.56 trillion was transacted in June.
This represents a decline of about Tk $3 billion, accounting for more than a 21 per cent decrease in overall transactions.
According to the Bangladesh Bank report, cash deposits (cash-in) through mobile financial services (MFS) in July totaled Tk353.35 billion, down from Tk435.62 billion in June.
This marks a reduction of Tk82.26 billion.
Similarly, withdrawals (cash-out) through mobile banking dropped to Tk401.14 billion in July, compared to Tk 513.54 billion in June, showing a decline of Tk112.40 billion.
Payments of utility bills through mobile banking also declined, with Tk 25.75 billion paid in July, down from Tk 32.23 billion in June, a decrease of approximately Tk 6.5 billion.
Remittance collection via mobile banking also fell, with expatriates sending Tk 7.14 billion in July, compared to Tk9.94 billion in June, a drop of around Tk 2 billion.
Despite the decline in transactions, the number of mobile banking accounts has continued to grow.
In July, the number of accounts reached 233.13 million, up from 233.42 million in June, an increase of 709,650 accounts.
Of these accounts, 135.65 million belong to male customers, while 97.18 million are held by female customers. Geographically, 109.8 million accounts are from urban areas while 128.94 million are from rural regions.
Mobile banking was first introduced in Bangladesh in 2010. The country's mobile financial services officially began on March 31, 2011, with Dutch-Bangla Bank launching mobile banking services.
Shortly afterward, bKash, a subsidiary of BRAC Bank, entered the market. Today, bKash dominates the MFS sector, followed by Nagad.
In addition to basic transactions, mobile banking now supports various services, including utility payments (for electricity, gas, and water), shopping, mobile recharge, salary disbursement, and receiving remittances from abroad.
Currently, around 13 banks and financial institutions, including bKash, Rocket, Upay, MyCash, and SureCash, provide mobile financial services in the country.