Mobile Financial Services (MFS) have been around for about 10 years now, marking a significant technological and financial advancement of the country. Such services have not only made transactions as simple as the act of a mere tap, they have also boosted the confidence of entrepreneurs and other individuals who are new to the world of business. This aspect has been especially helpful during the pandemic for both suppliers and consumers. As a result, one particular sector that has benefitted from this is the food industry. Cloud kitchens have boomed experiencing massive expansion. Thanks to the existence of a cashless and card-less transaction system, cloud kitchens were able to reach a large consumer base. In doing so, this has also diluted certain class differences within the population and created more and more financially stable individuals, especially among the young generation.

Cloud kitchens:

Cloud kitchens operate without a physical store-front, hence their transactions must occur online. This was initially challenging in a place like Bangladesh since only a small proportion of the population had access to credit/debit cards. Obtaining such payment methods required meeting certain criteria that not many can afford since owning a bank account is a privilege itself. However, upon the emergence of MFS, a larger portion of the population has access to digital money, especially students, who make up the majority of the food market. This 

allowed cloud kitchens to flourish and expand their customer base. This phenomenon has acted as a confidence booster for both businesses and their customers. This payment method allows cloud kitchen owners to have a secure method for receiving their money while also being able to keep a record of their transactions. This takes a large amount of work off their hands allowing them to invest more time into their business. Moreover, this system does not discriminate. It allows the participation of all kinds of businesses regardless of their size. Be it a home cook supplying smaller products or a large organization with a mass production line producing restaurant style food. The boom of cloud kitchens demonstrates how MFSs have made the business scene of Bangladesh much more inclusive.

The consumer aspect:

This system has also made it very convenient for the consumers as they are able to save and spend money without too much hassle and over a secure route. They know exactly where their money is going and are also able to keep track of their expenditure. This is especially good for the younger crowd as they learn to manage their money from an early age. It helps to build their financial confidence too. This also encourages them towards banking by making the process easy and convenient. As a result, this builds financially capable individuals, ensuring that the future will be in capable hands. Lastly, the more one’s spending capacity increases, the more likely individuals are to participate in and push the country towards economic growth.

Diluted Differences:

The availability of a cashless and cardless system has significantly diluted class differences as many are now able to make digital payments, as mentioned earlier. Previously, in order to be able to make digital payments, one needed to be in possession of a payment card which only a few could afford since it required having a bank account, with a certain amount of money, against which they could subscribe to a payment card. MFS don’t have any such requirements making obtaining a digital payment method affordable. This has opened up the opportunity of online shopping/transactions to people of all walks of life, leveling the field for everyone in terms of spending ability. One no longer needs to window shop online and feel bad for not having the appropriate payment method. Services like Bkash, Nagad, and Rocket have allowed banks to widen their client base by making banking available to a larger portion of the population. Moreover, it has made banking possible even in remote areas, encouraging more people towards financial stability by having a way to safeguard their money without having to purchase a bank account. This is somewhat diluted class differences as these facilities are no longer limited to the rich but also available to the poor and the marginalized. As a result, thanks to MFSs, general nationwide spending capacity is increasing, a factor that indicates the development.

To conclude, the impacts and benefits of MFSs go beyond just making banking simpler and more convenient. While there is no doubt that such financial systems bring us a step closer to having a cashless society, it also takes us a step closer to a society with more confident and capable individuals. Cloud kitchens are just one of the many examples that have experienced significant growth under the MFS system. With so many sectors experiencing such growth, we shall soon have a society that is much more economically developed and much more welcoming to individuals of all economic backgrounds. Thanks to MFS, as all aspects of the nation experience growth and expansion, we can look forward to a more economically sustainable future.

– Written By Faiza Nuren Rafa