MFS accounts increase by nearly 20m in one year

Mobile financial service (MFS), accounts in Bangladesh have surged by nearly 20 million, marking an 8.71 per cent increase over the past year.

A recent update from Bangladesh Bank revealed that by September 2024, the total number of MFS accounts reached 233.7 million, up from 215 million in the same month in 2023.

This indicates a rise of 18.7 million accounts, reports bdnews24.com.

The data also shows a steady upward trend in the number of MFS accounts. In September 2022, the total was 185.2 million.

Shamsuddin Haider Dalim, head of the communications department at bKash, attributed the growth to the increasing use of mobile financial services, which has gained more trust among consumers.

"People are gradually becoming more accustomed to using mobile financial services," he said.

"bKash and other institutions are always striving to introduce new services for customers. Where people once had to go out to send money, now they can do so from the comfort of their homes," he said.

He also highlighted that various institutions are now accepting payments via bKash, and funds can be transferred from 46 banks to bKash accounts, with transfers from bKash accounts available at 17 banks.

Moreover, bKash allows payments for school and college admissions, as well as for admission tests, while expatriates can send and receive money from home via mobile financial services.

TRANSACTION GROWTH

According to Bangladesh Bank's MFS report, mobile financial service transactions in September 2024 totalled Tk 1.45 trillion, marking the third-highest volume of the year, after Tk 1.55 trillion in June and Tk 1.53 trillion in March.

MFS transactions typically surge during Eid periods.

The data shows that the highest transactions occurred in April during Eid-ul-Fitr and in June during Eid-ul-Azha.

In September 2024, the transaction volume increased by 33.85 percent compared to the same month last year, which had seen transactions of Tk 1.08 trillion.

Mobile banking services, which have been in the country for over a decade, are gaining popularity due to the ease of transferring money instantly from city to village and vice versa.

At present, 13 companies, including bKash, Rocket, mCash, Upay, and Nagad, provide mobile financial services in the country.

Bangladesh Bank permitted mobile banking operations in 2010, and the service officially began in 2011 with the launch of Dutch-Bangla Bank’s mobile banking.

Following that, bKash, a subsidiary of BRAC Bank, launched its service and now holds a dominant share of the market.