BRAC Bank deal with Midland Bank to help boost remittance in-flow

FE Team | Published: December 28, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

FE Desk Report
BRAC Bank has recently signed an agreement with Midland Bank Limited.
Under this agreement, Midland Bank will execute Xpress Money remittance transactions from all of their outlets as a sub-agent of BRAC Bank Limited.
"This agreement is a significant development to increase the remittance inflow through banking channel," an official of Midland Bank told The FE Saturday.
According to a recent World Bank report, Bangladesh is estimated to receive US $15bn as remittance this year.
Bangladesh has a fast-growing labour population, which is increasing every year, as an estimated 0.4 million Bangladeshis migrate to foreign shores in search of a better livelihood.
 The two pre-requisites for increasing the amount of remittance to the country would be, migration of skilled workforce and receiving remittance through legal channels.
The government is making efforts to send skilled workforce to various job markets under the Government-to-Government (G-to-G) system. It has set up several training centres across the country to improve their skill-sets, impart training in different subjects and educate potential migrants on safe remittance practices.
A five percent growth in remittance inflow to developing countries has been projected in the World Bank report.
"Remittance flows into Bangladesh have shown remarkable resilience in the economy, not only during but also after the global crisis. It is growing at a CAGR of 5 per cent with $ 14.22 billion in 2013-14 up from $ 10.98 billion in 2009-10. These remittances through legal channels have helped Bangladesh transform from a least developed country to a middle income nation," an industry insider said.
"One of the main barriers to the growth in remittance is the existence of the undocumented channel - Hawala. With this channel, there is always a risk of the middlemen running away with the money or the money being used for illegal purposes that can pose as a threat to the security of the country," a senior official of Xpress Money said.
"The Bangladeshi government can address this barrier by implementing the free remittance scheme and offer a rebate to the banks or money transfer operators, like few countries in the world have successfully implemented. Additionally, it can also start incentivizing customers who use formal money transfer channels.
Furthermore, the government encourages money transfer operators like us to organize grassroot level activities year-on-year across Bangladesh which talks about safe remittance practices, and sending money through legal channels."
Since a decade now, both banks and money transfer agencies have been hugely contributing to the country's socio-economic development through remittances. People are slowly adapting to the idea of receiving money at bank branches, sent through money transfer operators, and in turn get accustomed to banks and the banking system. Remittances through legal channels have helped Bangladesh transform from a least developed country to a middle income nation.
If all expatriates convert to using legal channels of remittance, Bangladesh can achieve its target of receiving $ 20 billion as remittances by the year 2020.
"Since its inception in 2003, Xpress Money has been playing a very important role in the Bangladesh remittance industry, with a share of around 10 per cent in the organised market. We offer a plethora of services to our customers, catering to different customer needs and requirements.
We have become one of the leading foreign remittance players in Bangladesh with a wide network of 11,000 agent partners with associations with all leading banks in the country. This makes remittances easily accessible to the beneficiaries residing in remote towns and villages at very affordable rates," the Xpress Money source added.
Engaging with the Bangladeshi customers at the grass-root level through financial awareness camps and road shows are an intrinsic part of our marketing plan. We, also, run promotions during festivals such as Eid-ul-Fitr and Eid-ul-Azha, adding value to the transactions through special gifts.
"Infrastructural developments in key send markets with events such as Expo 2020 and FIFA 2022 will lead to a huge demand for skilled and semi skilled Bangladeshi workforce. Owing to this, we are expecting a 15-20 per cent rise in remittances to Bangladesh through our channel," the Xpress Money source said.