Financial technology or more easily said fin-tech is currently an industry that is growing rapidly all around us. Since people from all backgrounds nowadays are massively dependent on their smartphones to ease everyday tasks- these companies are providing them services of financial management using mobile phones apps. Over the years, the usage of smartphones in Bangladesh has increased by leaps and bounds. Bangladeshi inhabitants are now getting habituated with fintech expeditiously. No surprise that the COVID-19 pandemic had a big impact on the rise of MFS (Mobile Financial Services) all over the country.
Recently Bangladesh has reached new heights of internet penetration. This has helped many upcoming startups as well as existing companies to expand their businesses and provide services to people on a wider scale all over the country. During the pandemic, almost all service-providing businesses adopted the online method of payment. The numbers have surged in the online banking sector too. People are starting to rely heavily on contactless payments after the first two waves.
Besides, the e-commerce sector has also boomed during the pandemic with the help of MFS. Companies like Bkash, Nagad, Rocket, etc. are being used daily around the country for making payments of various services provided by businesses as well as the Govt. People are now paying their electricity bills, gas bills, internet bills, booking bus tickets, and almost every other regular service nowadays using online payment methods. Banks and MFS companies are integrating their services for better customer service. Various transactions are being swiftly made from their bank accounts to their mobile wallets to avail the particular service or product they are buying. The MFS companies are now becoming neo banks for many. These companies are providing people a whole lot of opportunities as well as security.
The pandemic has forced people and businesses alike to quickly adapt to the new normal. Companies providing MFS have also been agile to broaden their service line during this time. Right about now, almost every sort of payment can be made using mobile apps like Bkash, Nagad, and Rocket. These companies have also collaborated with other companies as much as possible. Like Bkash and Uber came together to make contactless payment very smooth. Food delivery services like Foodpanda, HungryNaki, Pathao Food, etc. take payments through online methods. These companies have grown rapidly during the pandemic with consumers opting for their services on their mobile apps to order food online conveniently from various restaurants around them.
MFS providers and banks have been instructed by Bangladesh Bank to open accounts for micro-merchants from all around the country. This process has helped grass-root traders to be included in the digital ecosystem enabling them to build their business around it. Currently, various sorts of online paid shows are being conducted by artists from different sectors. As public gathering is restricted, musicians are doing online shows on digital platforms. 10-minute school, Bohubrihi, etc. are selling online skill development courses using online banking and online payment services.
Moreover, the Government had taken initiative to give cash aids to distressed families- BDT 2,500 each- around the country of a total amount of 50 lakh using Bkash as medium. People used their NID verifications to apply for the cash aids. Bkash as well other MFS companies added options of donating money to various NGOs and foundations that helped people during this pandemic. Bkash had teamed up with various garments in the country and their associated banks to ease the payment of salaries of the workers through Baksh.
These initiatives from the MFS providers are bringing more users to the ecosystem and establishing a long-lasting trust in them, transforming the ever evolving fintech arena of Bangladesh.
