Nagad strives to promote digital money

FE REPORT | Published: April 30, 2024 00:57:50

Nagad, a popular mobile financial service provider in Bangladesh, is now going all the way towards making cashless transactions people's first choice.
In line with the government's goal that 75 per cent of all retail transactions are settled digitally, this MFS operator has taken its affordable, convenient products and services to people's reach and encourages them to avail those according to their needs from anywhere anytime in the comfort of their homes.
To promote cashless transactions, apart from its year-round offers, Nagad comes up with mega campaigns to reward its customers ahead of festivals like Eid. In 2023, the mobile money carrier dangled a mega offer for its customers to win a BMW car on payments and recharge, thus promoting Bangladesh's transition to the cashless society. There were many more gifts up for the grab, which included sedan cars, motorbikes, smartphones, notepads, refrigerators, televisions, smartphones, smartwatches, and headphones.
According to sources at Nagad Ltd., during the mega campaign, the company registered a robust 10-time growth in financial transactions, which was much higher than the entire MFS industry's growth, riding on its ongoing BMW campaign. Following a successful giveaway of a BMW, this year Nagad has introduced a never-seen-before offer for its customers to win plots in Dhaka. It has already handed over a couple to plots to the winners.
Nagad customers have now reached 90 million with its daily financial transactions hitting about Tk 18 billion. Such a massive growth in terms of customers and financial transactions over a short period has been possible on the back of easy and affordable services designed in keeping with the growing needs of customers, say a Nagad high official seeking anonymity.
Talking about how Nagad has achieved such an enviable success, the Nagad official said, "We always think of people's affordability and comfort while designing any product or service. Before our entry, the MFS market ran into a monopolistic situation where a single player, who got hold of 93 per cent of the market, would charge exorbitantly, keeping lower-class people, at bay when it comes to getting access to digital financial services. Nagad from the day one has been offering services in a simplified way possible at half the charges that the then leading operator would levy."
An easy customer onboarding, minimal service charges and continuous rewards have contributed to Nagad's robust growth, resulting in a large number of people across the country choosing digital money over cash - be it for mobile recharge or bill payments or products purchase.
Refatullah Mridha, a private employee in Dhaka, said, "I use Nagad because it costs the lowest, gives me comfort and secures my money."
Nagad has developed all the services in such a way that the people of all classes can easily avail of.
A garment factory worker in Narayanganj Runa Begum said, "I send money to my village home through Nagad as it is easy to use, and the charge is low."
The world's fastest-growing fintech company is now bringing together all financial services -- many of them cannot be offered by MFS owing to regulatory limitations -- on a single platform.
Once its digital bank takes shape, Nagad will introduce digital lending and savings solutions among many services that are off-limits to informal sector people in the traditional banking system. Individuals from all walks of life will have access to credit and manage their finances conveniently through their smartphones, said Muhammad Zahidul Islam, vice president and head of Media and Communications at Nagad.
He also said, "Nagad has kept going ahead with its mission to promote cashless transactions and benefit disadvantaged people and the country as a whole. We look to contribute to bridging the digital divide by integrating the people in rural areas into our digital financial system. In this case, we believe the digital bank will fit the bill."
The country's people and the economy get priority in every initiative that Nagad takes up, he also noted, adding, "A smart Bangladesh cannot be built if our people and economy do not become smart."
"If we all work together from our respective positions, our country will gain its status of a developed country with a mature and sophisticated economy, advanced technological infrastructure, and diverse industries much ahead of the stipulated timeframe -- 2041," he concluded.