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Trust Bank has decided to invest Tk 312.5 million to strengthen its position in the rapidly growing mobile financial services industry, aiming to capture a bigger market share.
The listed private commercial bank made the decision at a board meeting on Wednesday, according to a stock exchange filing on Thursday.
"Currently, our customer base is small. We aim to expand it nationwide and capture a larger share of the market, which is why we've decided to invest further in this business," said Trust Bank's Chief Financial Officer Md Mahfuzur Rahman.
At present, Bangladesh has 13 operational MFS providers. Of these, 12 are owned by banks, and one is operated by Bangladesh Post Office. Trust Bank's MFS, branded as Trust Axiata Pay (TAP), currently holds a small market share.
According to Bangladesh Bank's data as of July 2023, BRAC Bank's "bKash" dominates the market with a 39.9 per cent stake while Post Office's "Nagad" holds 18.1 per cent share and Dutch-Bangla Bank's "ROCKET" accounts for 11.7 per cent of the market.
The remaining 30 per cent is divided among other providers, including TAP.
The MFS market in Bangladesh has been growing steadily. In October 2024, total transactions via MFS platforms reached Tk 1.55 trillion, reflecting a 6.75 per cent increase from September 2024.
These platforms offer a wide range of services, including electronic fund transfers, inward foreign remittance payments, cash in/out from ATMs, local remittances (P2P), utility bill payments, and e-top-up purchases.
Trust Axiata Pay (TAP) was launched in July 2021. By the end of 2023, Trust Bank acquired full ownership of TAP, making it a 100 per cent subsidiary.
Following the latest announcement, Trust Bank's share price rose 0.46 per cent to Tk 21.80 each on the Dhaka Stock Exchange on Thursday.