bKash: Revolutionizing Mobile Financial Services in Bangladesh

bKashis a revolutionary mobile financial service (MFS) in Bangladesh, operating under the authority of Bangladesh Bankas a subsidiary of BRAC Bank PLC. Since its inception, bKash has played a crucial role in improving financial inclusion, especially in rural areas, where access to traditional banking services is limited.  

The Beginning of bKash  

bKash was founded by Kamal Quadir and Iqbal Quadir, two brothers with a vision to introduce mobile financial services to Bangladesh, inspired by similar successes in countries like the Philippines and Kenya. In 2008, after extensive discussions, the Quadir brothers partnered with BRAC’s founder, Sir Fazle Hasan Abed,to establish a joint venture between Money in Motion LLC(USA) and BRAC Bank. The service officially launched on July 21, 2011.  

At its launch, bKash aimed to offer basic mobile financial services such as Cash In, Cash Out, and Send Money, understanding that over 70% of Bangladesh's population resides in rural areas where access to traditional banking is scarce.  

Funding and Shareholding  

bKash began as a joint venture between BRAC Bank Limitedand Money in Motion LLC. Over time, the service attracted major investors:  

• April 2013: International Finance Corporation (IFC), a member of the World Bank Group, became an equity partner.  
• March 2014: The Bill & Melinda Gates Foundationinvested, aligning with bKash’s mission to promote financial inclusion.  
• April 2018: Ant Financial, the operators of Alipayand an affiliate of Alibaba Group, entered as an equity partner.  
• November 2021: SoftBank Vision Fund IIinvested $250 million, acquiring over a 10% stake and significantly increasing bKash’s valuation.  

This investment marked bKash as the first unicorn startupin Bangladesh, valued at over $1 billion.  

Services Provided by bKash  

bKash has evolved from a simple money transfer service to an integrated platform offering a wide range of financial services. Some of the most popular services include:  

1. Money Transfers: Sending and receiving money domestically, especially for people without access to traditional banks.  
2. Bill Payments: Paying utility bills, mobile recharges, and more.  
3. Loans and Insurance: Digital nano loans, savings schemes, and insurance services.  
4. Mobile Recharge: Recharge both prepaid and postpaid mobile packages.  
5. Remittance Services: Receiving money from abroad through remittance channels.  

bKash also allows users to make payments for education fees, microfinance, donations, and even buy tickets, making it a comprehensive financial solution.  

You can access these services easily through their USSD code(*247#) or their bKash App.  

bKash App: A Game-Changer  

The bKash app, launched in 2018, revolutionized how people in Bangladesh handle money. The app offers several features that have made it widely popular:  

• Transaction Services: Send money, recharge, cash out, pay bills, and more.  
• Financial Products: Savings schemes, micro-loans, and insurance options.  
• Security Features: Two-factor authentication and QR code scanning to ensure secure transactions.  
• Accessibility: With a vast network of agents, merchants, and customer service points, bKash ensures easy access to financial services for all.  

The bKash app’s user-friendly interface, security measures, and broad range of services have earned it accolades, including recognition as the best innovation in the Financial Innovation Categoryat the Bangladesh Innovation Award 2018.  

Impact on Financial Inclusion in Bangladesh  

bKash has significantly impacted Bangladesh’s financial sector, especially by improving financial inclusion. The app has made it easier for the unbanked and underbanked populations, especially in rural areas, to access financial services. According to Prothom Alo, a leading national newspaper, bKash has reached a customer base of over 70 million registered users.  

By allowing users to perform financial transactions like sending money, paying bills, and receiving remittances, bKash has reduced the reliance on cash and made daily financial operations more convenient for millions of Bangladeshis. This accessibility to mobile financial services has enhanced the convenience of financial transactions, which is especially important in a country where many people live in remote areas without access to physical banks.  

Global Recognition  

bKash’s innovation and success have caught the attention of international media and business organizations:  

• Fortune Magazineranked bKash 23rd on its Change the Worldlist in 2017.  
• Asiamoney Magazinerecognized bKash as the Best Digital Solutionin 2018.  

This global recognition speaks volumes about bKash’s role in shaping the future of digital payments in Bangladesh and beyond.  

Sponsorship and Partnerships  

In addition to its financial services, bKash has also ventured into sponsorships to expand its brand visibility and engagement with various audiences:  

• In May 2023, bKash became the regional sponsorfor the Argentina Football Association, aligning itself with one of the most popular sports globally.  
• The same year, it also became the key sponsorfor the D1 Cup Bangladesh 2023, further solidifying its presence in the local market.  

Conclusion  

bKash has played a crucial role in transforming the financial services landscape in Bangladesh. By offering a broad range of services and expanding financial inclusion, bKash has made banking more accessible to millions, contributing to the nation’s economic growth. Its innovation, security features, and wide range of services have made it an integral part of everyday life for many people in Bangladesh.  

As Bangladesh continues to embrace digital financial solutions, bKash’s success will likely serve as a model for other countries in emerging markets looking to boost financial inclusion through mobile financial services.  

Learn more about bKash|     Explore BRAC Bank|     Check out financial inclusionnews