Jump to content
Sign in to follow this  
Julian_Williams

bKash

Recommended Posts

bKash has hardly been discussed on the forum, but it is likely to be very successful - very much modelled on the success of M-Pesa which has largely replaced cash in local currencies in East Africa and reduced corruption in Afghanistan

https://www.ripple.com/insights/views/swell-2019-how-bkash-makes-banking-accessible-to-36-million-in-bangladesh/
 

Quote

 

Citizens of Bangladesh face large financial challenges. More than one third of the population lives below the poverty line and too many have little to no access to services at traditional financial institutions. Enter bKash Ltd., one of the country’s most popular mobile payment providers. 

In just over a decade, the company has driven significant impact throughout the country. Today, 36 million customers are part of the company’s “digital economy”—and 90% of them are newly banked because of the revolutionary services the company offers. This figure also represents 80% of the total market share in Bangladesh and amounts to 6.7 million payment transactions per day. 

For someone whose company has been the catalyst of such impressive change for so many, CEO Kamal Quadir is not only pragmatic, but he is also extremely humble. As the day two keynote speaker at Swell 2019, he was squarely focused on “the social uplift” of bKash’s technology on the lives of the people who use it. 

“We have to be very mindful of the impact of the technology we’re working on,” Quadir remarked. “We have a short life on this earth, and I want to do something meaningful.” 

He shared his experience building this impressive payments ecosystem, piece by piece, during an on-stage conversation with Asheesh Birla, SVP of Product at Ripple—a tale about working within the existing regulatory and financial services system in Bangladesh while also capitalizing on the advent of new mobile phone use throughout the region. 

“In the developed world, we often take being banked for granted. It’s important to consider the story of a real customer’s needs,” explained Quadir. bKash is enabling millions of people who live and work in urban areas to quickly, cheaply send money home to loved ones in rural parts of the region. 

Before bKash, Bangladesh was a largely cash-based economy. This made it difficult to transact, share and save money. Quadir worked with the central bank and regulators in the country to establish a system where digital money was backed by physical cash, and customers could pre-fund accounts that were accessible through their mobile phones. Through this new bKash platform, customers in the country had access to an ecosystem of digital financial services for the very first time. 

Customers are now able to use their mobile phones to send and receive money, pay for goods and services, set up savings accounts and more—bringing unprecedented speed, convenience and reliability to a financial system that was virtually inaccessible before.  

With this new technological innovation, the use of physical currency continues to decrease in the region, according to Quadir. He explained that it has created new opportunities for the previously underbanked. Customers begin to build trust in digital money and services on the bKash platform through remittances, and then they begin to set up accounts and save for the future. 

But Quadir was quick to underscore that “this one solution does not solve the larger problem of transferring cross-border payments.” Too often, global payments are costly, unreliable and slow because the underlying systems are fragmented and complex. Customers—not only in Bangladesh, but around the world—need to send and receive fast, low-cost payments. 

Quadir explained that “one of the great values of leveraging blockchain technology is that it allows companies to meet customer demand for immediate, transparent and low-cost global payments.” This was a common theme discussed throughout Swell 2019—the trust and transparency it brings to the global payment systems—and perhaps a preview of what the new partnership between Ripple and bKash may offer. 

To join the Swell 2019 conversation, visit Insights and follow along today on Twitter, LinkedIn and Facebook.

 

About M-Pesa: https://en.wikipedia.org/wiki/M-Pesa

Edited by Julian_Williams

Share this post


Link to post
Share on other sites
5 hours ago, Julian_Williams said:

bKash has hardly been discussed on the forum, but it is likely to be very successful - very much modelled on the success of M-Pesa which has largely replaced cash in local currencies in East Africa and reduced corruption in Afghanistan

https://www.ripple.com/insights/views/swell-2019-how-bkash-makes-banking-accessible-to-36-million-in-bangladesh/
 

About M-Pesa: https://en.wikipedia.org/wiki/M-Pesa

bKash is such an important partnership -- they already have 60% of the market share for mobile financial providers in Bangladesh. That might be a smaller market, but I think we'll see Ripple adoption more and more in countries where mobile banking is pivotal, especially since it's in keeping with the endless talk we hear about banking the unbanked. If Ripple becomes the go-to-solution for these services, it could represent a trillion dollar market.

Edited by ADingoAteMyXRP

Share this post


Link to post
Share on other sites
2 hours ago, ADingoAteMyXRP said:

bKash is such an important partnership -- they already have 60% of the market share for mobile financial providers in Bangladesh. That might be a smaller market, but I think we'll see Ripple adoption more and more in countries where mobile banking is pivotal, especially since it's in keeping with the endless talk we hear about banking the unbanked. If Ripple becomes the go-to-solution for these services, it could represent a trillion dollar market.

It would become a multi trillion dollar market with ease.  For generations these people have been abandoned by the Western banks as not worth providing services to, it is partly why there economies have remained under developed.  Suddenly they have the same opportunities that we have in the West.  Just like they did not have telephones before mobile technology came along; BANG, today even the nomads and hunter gatherers can keep in touch with each other.  Banking is an even bigger deal for these people than telephony.

Share this post


Link to post
Share on other sites
2 hours ago, Julian_Williams said:

For generations these people have been abandoned by the Western banks as not worth providing services to

Even more reason for wanting to see this becoming successful; righting an enormously over due wrong. And their cell phones will be their great enablers to joining the ranks of the banked.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...