Inbound remittances via MFS jumped 95% in October

Highlights

• Tk 1,102.22 crore was sent via MFS in October 2024, a year-on-year increase of 95.22%

• MFS transactions in October totaled Tk 1,54,857.32 crore, up 8.80 per cent from September.

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• MFS registered users reached 2,342.50 lakh in October 2024

• Higher exchange rates and reliable services boost fund flows through platforms like bKash and Nagad

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Bangladeshi migrant workers sent home Tk 1,102.22 crore as remittances through mobile financial service (MFS) providers in October 2024, according to Bangladesh Bank data.

This figure represents a remarkable 95.22% year-on-year (YoY) increase from the Tk 564.61 crore sent home via MFS providers in October 2023.

This increase reflects the growing popularity of MFS, which includes platforms like Nagad and services such as bKash, Rocket and Upay offered by scheduled banks.

As of September 2024, Tk 1,021.99 crore worth of remittances were disbursed through MFS platforms. Remittances also marked an increase of 7.85% in October compared to September.

Expatriate Bangladeshis sent back Tk 1,101.81 crore in August, compared to Tk 714.48 crore in July.

As of October 2024, the number of registered MFS customers reached 2,342.50 lakh, with 1,379.80 lakh male customers and 962.70 lakh female customers.

The number of transactions was 64.37 crore in October compared to 59.16 crore in September, representing an increase of 8.80% in the transaction volume for October this year.

MFS witnessed such a surge in October with the total transaction volume reaching over Tk 1,54,857.32 crore in October, compared to over Tk 1,45,067.63 crore in September this year, the data showed.

Speaking to BSS, Shamsuddin Haider Dalim, Head of Corporate Communications and Public Relations at bKash Ltd, the largest MFS provider in Bangladesh, said that due to the convenience of digital transactions, the MFS sector has seen substantial growth in customer cashless spending. in recent years.

Among the services provided by MFS operators, inbound remittances are gaining popularity day by day, he added.

He said customer confidence in formal channels has increased significantly in recent times, contributing substantially to the increase in inbound remittances.

He noted that customers also benefit from higher dollar exchange rates when sending remittances to the country.

“Through bKash, expatriate Bangladeshis from over 110 countries can send money to their loved ones in a short time. They can help their families even in emergencies,” he added.

Additionally, withdrawal fees have become more affordable and customers enjoy instant fund transfer facilities, he said.

Bangladesh Bank introduced efficient off-branch MFS in 2011 as the country gained a ubiquitous mobile phone network, large number of mobile phone users and improved IT infrastructure. In ten years, this exponentially growing bank-led MFS model has become the largest MFS market in the world.

Bangladesh Bank allows money inflow and outflow payment services, person to person (P2P), person to business (P2B), business to person (B2P), person to government (P2G) ) and government-to-person (G2P) via MFS at the national level.

No cross-border money transfers are permitted under this service. However, local disbursement of incoming foreign remittances through the banking channel is permitted.

Any adult can open an MFS account with any provider at an agent point or bank branch with a photo and legal ID. In this case, it is not permitted to have more than one MFS account by the same person with the same provider.