Tech-based initiatives needed to boost remittance inflow

The speakers came up with the information at a recent workshop titled “The Changing Landscape and Emerging Potential of Remittance in Bangladesh” organised by bKash, the country's largest mobile financial service provider, said a press release issued on Thursday.

According to them, if sender’s satisfaction can be achieved more, the rate of remittance flow through legal channels will increase further.

Therefore, the workshop recommended taking swift policy initiatives to keep pace with the changing global practices.

The workshop featured participation from top officials of numerous banks, including Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank, Pubali Bank, BRAC Bank, Mutual Trust Bank, Trust Bank, City Bank, Eastern Bank, Social Islami Bank, Al-Arafah Islami Bank, Shahjalal Islami Bank, Prime Bank, and Mercantile Bank. Also, several officials from leading international Money Transfer Operators (MTOs) joined the workshop, such as Western Union, MoneyGram, TerraPay, NEC Corporation, Mastercard, Instant Cash, National Exchange Company, Simpaisa, Hometown, Taptap Send, and EzyRemit.

The keynote paper on the growth, potential, and challenges of Bangladesh's remittance sector was presented by Zahidul Ahasan, Head of Remittance at bKash. Ali Ahmmed, Chief Commercial Officer at bKash, stated that it is crucial for all institutions in the remittance ecosystem to work collaboratively to make remittance platforms faster, cost-effective, and interoperable. He added that this is the right time for investing in technology-based infrastructure that will transform the remittance sending experience.

According to representatives of global MTOs, the remittance sector is becoming highly competitive due to app-based services, making customer experience the single most important factor.

Expanding instant services demands data-driven decision-making. Since expatriates’ remit funds for essential needs like investment, housing, and children’s future, they also require secure savings options and access to credit. Transactions must be ensured through safe, easy, and the fastest technological methods.

Representatives from the country's top banks stated that remittance historically meant ‘Cash over the Counter’ with significant processing delays. Thanks to various initiatives, services now allow money to be sent instantly to MFS platforms like bKash. However, they noted that there is still room to broaden its reach. They concluded that integrated efforts by all ecosystem partners are essential to make the remittance experience even more easy, instant, and secure.

Notably, more than 15 million expatriates worldwide send their income to Bangladesh every year from 176 different countries. Although expatriate numbers are highest in Cumilla, Chattogram, Brahmanbaria, Feni and Noakhali, expatriates from nearly all districts are now contributing to the flow of funds.

The process of sending remittances has become significantly faster and simpler due to the widespread adoption of digital platforms by local banks, MFS, and MTOs, reports UNB.