Customers of financial services companies have opened more than 32 lakh DPS in five banks and non-bank financial institutions from Bikash app without documents and bank accounts.
In a press release, Bikash said, these DPS accounts have been opened on a weekly and monthly basis in the last three years.
Banks and financial companies are Mutual Trust Bank, Dhaka Bank, City Bank, BRAC Bank and IDLC finance.
According to the notification,the service was launched in September 2021 with the monthly DPS of IDLC Finance in MFS company Bikash. Then DPS of the remaining four banks were gradually added. And weekly DPS service on bikash App will be launched in the first half of 2024.
Deputy Governor of Bangladesh Bank. Zakir Hossain chowdhury said, “Central Bank Payment Service Department is working continuously to make payments more efficient. Thanks to Vikas for also playing a role in this process.”
IDLC finance CEO and Managing Director M jamal Uddin said, “After joining Bikash, we got 1.2 lakh customers so quickly, which is unprecedented. We did not understand the interest of the people of Bangladesh in saving before development came.”
Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank said, “The future is stagnant without collaboration and co-creation. Reaching out to marginalized populations alone is costly for banks. MFS has facilitated this process.”
Dhaka Bank managing Director Sheikh Mohammad Maruf said, “Encouragement and incentives from the goverment are also needed to bring people to a place of trust in digital transactions.”
Masrur Arefin, Managing Director and CEO of City Bank said, “Banking services are reaching people from all corners of the country through Bank-MFS collaboration.”
BRAC Bank Managing Director and CEO Selim R. F.Hossain said, “If we compare Bangladesh with many other countries, it can be seen that the savings rate is still quite low. Which means there is scope for more work in this sector.”
Kamal Kadir, founder and CEO of BKash, said on the occasion, “Prosperity starts with savings. The day the first rupee is saved, the future planning begins. Herein lies the beauty of savings on the Bikash app.”
According to the press release, depending on the type of institution and DPS (weekly or monthly), customers can deposit from Tk 250 to Tk 10,000 for a period of 6 months to a maximum of 4 years.
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What are the advantages of using mobile apps like Bikash for financial services compared to conventional banking methods?
Interview between Time.news Editor and Financial Services Expert
Time.news Editor (TNE): welcome to our show! Today, we’re discussing a fascinating development in the financial sector. Recently, we’ve seen over 3.2 million Depositor Protection Schemes (DPS) opened through the bikash app, allowing customers to bypass traditional documentation and bank accounts. Joining us is Dr. Anaya Verma, a noted expert in fintech and digital banking. Dr. Verma, thank you for being here.
Dr. Anaya Verma (AV): Thank you for having me! It’s an exciting time for the financial services industry.
TNE: Absolutely! This figure of over 3.2 million DPS opened through a mobile app is staggering.What do you think this indicates about the current trends in financial services?
AV: It highlights a significant shift towards digitalization and convenience in banking. The fact that customers can open DPS without traditional documentation marks a move towards financial inclusion, allowing many who previously lacked access to participate in the financial ecosystem.
TNE: That’s an important point. Can you elaborate on how this change might impact those who typically face barriers to banking?
AV: Certainly. Many individuals in underserved regions may lack the necessary documents or have difficulty accessing physical bank branches. Digital platforms like the Bikash app provide a simplified process, empowering these individuals by providing them savings options and financial security without the usual hurdles.
TNE: You’ve mentioned financial inclusion, which is a critical issue. How do you see apps like Bikash addressing this challenge further?
AV: Apps like Bikash not only simplify the account-opening process but also educate users about saving and financial management. By leveraging technology, these apps can reach a broader audience, including rural populations, and provide services such as microloans, insurance, and savings products that align with their needs.
TNE: It sounds like a win-win situation. But are ther any risks associated with opening DPS without traditional banking checks?
AV: Yes, while convenience is a major advantage, it does come with risks. The lack of thorough documentation can raise concerns about identity verification and fraud. Regulatory bodies will need to keep a close eye to ensure that proper safeguards are in place to protect consumers and prevent abuse of the system.
TNE: That’s a valid concern. How can users protect themselves while benefiting from these digital services?
AV: Users should be vigilant about the platforms they choose to use, ensuring that they have strong security measures in place. Educating themselves about the features of the app, such as two-factor authentication and transaction alerts, can bolster their security. Additionally, they should stay informed about their rights and the protections available to them under local regulations.
TNE: Wise advice! Looking ahead, what trends do you foresee in the financial services landscape, especially with the rise of mobile apps?
AV: I believe we will continue to see the convergence of technology and finance, leading to even more innovative services.Artificial intelligence and machine learning will play significant roles in personalizing financial products and fraud detection. Moreover,we might see collaborations between fintech companies and traditional banks to create hybrid solutions that merge security with convenience.
TNE: That sounds promising! Thank you, Dr. Verma, for sharing yoru insights today. It’s clear that the financial landscape is evolving rapidly with technology at its forefront, and we’re excited to see where it goes next.
AV: Thank you for having me! I look forward to keeping an eye on these developments as they unfold.
TNE: And thank you to our viewers for tuning in.Stay informed about these changes, and join us next time for more discussions on today’s trends shaping our world!