Nagad Ltd., the leading mobile financial service provider of the Bangladesh Postal Department, has consistently been contributing to state coffers as a top VAT-paying company over the last few years, thus playing a key role in stoking economic growth.
For the fiscal year 2021-22, the MFS operator got into the list of top VAT depositors in the service category at the national level for the second time in a row and was conferred with the "Highest VAT Payers Award" by the National Board of Revenue (NBR). Similarly, for FY20-21, the country's fastest-growing mobile money carrier, emerged as a leading VAT payer.
Experts attribute such accomplishment to Nagad's dedication to providing people with easy and affordable services and its unwavering commitment to ensuring transparent financial practices.
Seeking anonymity, a financial industry analyst said, "Nagad's contribution in the form of VAT payments is commendable. Its depositing of VAT regularly to the government exchequer not only strengthens the government's fiscal position but also injects vitality into the business landscape, creating an environment conducive to expansion and innovation."
From the get-go, the MFS operator has revolutionised the country's financial landscape with one after another disruptive innovation.
The introduction of electronic know-your-customer (e-KYC) was a game-changing innovation that allows the opening of an MFS account on a smartphone without requiring any cumbersome paperwork. Customers can open an account in less than a minute by taking a photo of their National Identity Card and a selfie using a smartphone. As a result, customers no longer need to find an agent, thus saving time and money.
To bring the people having no smartphones into the fold of financial inclusion, it came up with another innovation that allows the opening of an account by simply dialling *167# on a feature phone without requiring the use of the mobile application.
Such a simplified account opening system coupled with customer-centric products and services has earned Nagad a massive customer base at a faster pace, which now stands at 85 million. Daily transactions have reached more than BDT 10 billion. In this way, the MFS operator has been instrumental in boosting VAT contributions.
Economic experts said Nagad's role in economic growth goes beyond numbers. The revenue generated from VAT is expended on development projects, contributing to a robust foundation for sustained growth.
According to officials at Nagad Ltd., the MFS company's inclusion in the top VAT payers' list is attributed to its rapid customer growth, fuelled by innovative service offerings that have led to an upswing in transactions.
Emphasising the broader impact of his company's contributions, Nagad's Founder and Managing Director Tanvir A Mishuk said, "Our commitment to becoming the top VAT payer goes with our vision of contributing meaningfully to Bangladesh's economic growth. Beyond financial transactions, we are also working for innovations, job creation, and business expansion -- all will eventually lead to a thriving business ecosystem in our country."
The Bangladesh Bank has set a target that 75 per cent of the country's total retail transactions is settled digitally by 2027.
Keeping it at the forefront, this company continues to enhance customer experience with products and services tailored to customers' changing needs. "We are now actively working towards launching the country's first digital bank named "Nagad Digital Bank", thus taking cashless transactions to the next level," said Mr Mishuk. The digital bank is expected to get into operation within the next few months.
Moreover, the MFS company has already digitalised the disbursements of social safety net allowances, education stipends, and even distributed cash aid to underprivileged families during the pandemic times.
With Nagad seeking to take the lead in improving the country's economic landscape, the outlook for Bangladesh appears promising. The company's unwavering endeavours to help the country prosper now lead by example for others, which will inspire a collective effort towards a smart economy.