Fast Moving Consumer Goods (FMCG) refers to the final products, goods, and services that are used for household consumption or private consumption. FMCGs are sold rapidly at comparatively low prices and not applied in the production system of other goods and services. Usually, FMCGs have a limited shelf life. FMCG business has acquired its position among the fastest growing industries in Bangladesh. This industry has huge potential as a high volume business with a low margin. Read this article, to know about the top FMCG companies in Bangladesh.

Major Classifications of FMCG Industry in Bangladesh

In Bangladesh, the industry of Fast Moving Consumer Goods (FMCG) is classified into three key categories - Foods and Beverage industry, the Personal Care industry, and Household Care Industries.

Foods and Beverage Industry includes all kinds of food products such as biscuits and bakery, milk and dairy, baby foods, frozen foods, ice cream, tea, tobacco, coffee, soft drinks, health drinks, etc.

Beauty and Personal Care industry include personal care related products such as perfume, cosmetics, hair oil, toiletries products, etc.

Household Care Industry includes the products used for cleaning and decorating homes or offices. This category includes mosquito aerosol, laundry detergent, room sprays, Toilet Cleaner Liquid, Antiseptic Liquids, etc.

Read Best Home Loans in Bangladesh to Build Your Dream Nest.

List of the Top FMCG Companies in Bangladesh

Foods & Beverage Industry

Milk and Dairy Industry

‘Milk Vita’ from Bangladesh Milk Producers’ Cooperative Limited, ‘Aarong’ from BRAC Dairy and Food Project, and ‘Pran Milk’ from Pran Dairy Ltd are the leading brands holding 80% share of the pasteurized milk market in Bangladesh. The rest 20% share is held by the other brands such as ‘Aftab Milk’ from Aftab Milk & Milk Products Ltd, ‘Farm Fresh Milk’ from Akij Food and Beverage Ltd, ‘MOO’ from American Dairy Limited, ‘Dairy Fresh’ from Baro Awlia Dairy Milk & Foods Ltd, ‘Ayran’ from Danish Dairy Farm Ltd, etc.

Biscuit & Bakery Industry

The local brands can fulfill about 90- 95% of the domestic demand for Biscuits in Bangladesh and the rest portion is imported from overseas countries. Occupying about 39% market share, Olympic Industries appears as the dominating player in the branded biscuits market of Bangladesh. The other popular Biscuit and Bakery manufacturing companies include Pran Foods Ltd, Rani Food Industries Ltd, Ifad Multi Products Ltd, Kishwan Snacks Ltd, Haque Food Industries, Danish Foods, Nabisco Bread and Biscuits, Bangas Limited, Al-Amin Bread & Biscuit Industries Ltd, Cocola Food Products Ltd, etc.

Frozen Food Industry

In the segment of processed meat and frozen snacks, Golden Harvest Agro Industries Limited is the pioneer holding 25% of the market. In this line, Lamisa Foods is in the second position with a 15% market share. The other major brands include Brac Chicken, Pran RFL, Kazi farms, CP Bangladesh, Igloo Foods, KFC Bangladesh, Rich Foods, etc.

Ice-Cream Industry

Holding about 36% market share, ‘Igloo’ from Abdul Monem Limited is the most preferred ice-cream brand by the Bangladeshi consumers. ‘Polar’ from Dhaka Ice Cream Industries Limited appears as the second market leader occupying a 26% market share. In this channel, the other major brands are ‘Golden Harvest Ice Cream’ from Golden Harvest Ice Cream Ltd, ‘Bellissimo Creations’ from Bellissimo BD, and ‘Kwality’ from Sanowara Group.

Read Best Personal Loans in Bangladesh to Make Your Dream Come True.

Tobacco Industry

In the tobacco industry of Bangladeshi, the dominating players are British American Tobacco (BATBC), Dhaka Tobacco (under Akij Group), Abul Khair Tobacco, and Nasir Tobacco.

Tea Industry

‘Ispahani Mirzapore’ from M.M Ispahani Limited is the most admired tea brand in Bangladeshi. The other pioneering tea brands of the country are ‘Taaza’ from Unilever and ‘Seylon’ from Abul Khair Consumer Goods and ‘Finlay’ tea from The Consolidated Tea and Lands Company Bangladesh.

Drinks & Beverages

• Bottled Water

‘Mum’ from Partex Beverage Ltd is the market leader in the bottled water segment. ‘Fresh’ from Meghna Group of Industries and ‘Pran’ from Pran Foods holds a significant share in the Bottled Water industry. Besides these, there are some other popular bottled water brands in Bangladesh such as ‘Jibon’ from City Group, ‘Acme’ from The ACME Agrovet & Beverages Ltd, ‘Ifad’ from Ifad Multi Products Ltd, ‘Spa’ from Akij Food & Beverage Ltd, ‘Muskan’ from S.A. Group of Industries, etc.

• Health Food Drinks

In the segment of Health Drinks, the market is dominated by ‘Horlicks’ from GSK Bangladesh (Currently owned by Unilever). Besides this, ‘Complan’ from Transcom Beverage, ‘Maltova’ from GSK Bangladesh, ‘Tang’ from Sajeeb Group, are very popular health drink brands in Bangladesh.

Read Best Car Loans in Bangladesh to Grab Your Dream Car.

• Juice and Carbonated Soft Drinks

Transcom Beverages Ltd (TBL) is the PepsiCo Franchisee for bottling ‘7up’, the most renowned Carbonated Soft drink brand in Bangladesh. TBL also supplies several other popular soft drinks such as Mountain Dew, Pepsi, Mirinda, Slice, 7UP Light, and Pepsi Diet.

‘Pran Frooto’ is the most popular juice in Bangladesh. It is the flagship beverage of Pran RFL Group. This company also produces some other famous juice and carbonated drinks, like, Fazlee, Pran, Cola, Pran Up, Maxx Cola, Tango, Ody, Bulldozer, Power Drink, Colors Drink, PRAN Apple Fizz, etc.

‘Frutika’ by Akij Food & Beverage Ltd is another leading juice brand of the country. This company also produces some other well-known soft drinks like Clemon, Mojo, Aafi, Speed, etc.

‘Mangolee’ is another popular juice made by GSDL (Globe Soft Drinks Limited). Besides this, GSDL & AST Beverage is a franchisee of some well-known soft drinks and energy drinks, including, URO Cola, FizzUp, URO Lemon, Black Horse, Royal Tiger Energy Drinks, etc.

Abul Khair Consumer Goods Division produces Starship Mango Drink, Starship Chocolate Milk, Starship Fruity, Saad Litchi Drink, Shaad Orange Drink, and Marks Chocolate Milk.

‘Shezan’ juice products from Sajeeb Group and ‘Nectar’ juice from BD Thai Food & Beverage Limited (BTFBL) are also popular in Bangladesh.

AM Beverage limited or Abdul Monem Ltd. (AML) is the authorized bottler of several popular soft drinks such as Coca-Cola, Fanta, and Sprite. International Beverages Private Limited is also associated with the production and distribution of Coca-Cola beverages in Bangladesh.

Partex Beverages produces a bunch of popular soft drinks like RC Cola, RC Lemon, RC Orange, RC Zera Pani, etc.

Food Ingredients & Snacks

In the segment of Atta, Maida, and Suzi related food products, ‘Fresh’ owned by Meghna Group is the top market player. The other significant brands are ‘Teer’ by City Group, ‘Pusti’ by TK Group, ‘ACI Pure’ by ACI Limited, ‘Sajeeb’ by Sajeeb Group, ‘Ifad’ by Ifad Multi Products Ltd, ‘Fouzi’ by Sena Kalyan Sangstha, etc.

In the Spice category, the most popular brands are Radhuni, Pran, BD Food, and Arku. Square Food & Beverage produces Spice products under the ‘Radhuni’ brand that holds around 66% of the local market share in Bangladesh. ‘Pran’ spices produced from Pran Foods Ltd occupies about 19% market share, ‘BD Food’ spices from BD Foods Ltd holds around 7% market share, ‘Arku’ spices from Arku Group Ltd holds about 3% market share.

In the Salt industry of Bangladesh, the chief brands are ‘ACI Pure Salt’ from ACI Limited, ‘Molla Super Salt’ from Molla Super Salt Industry Ltd, ‘Fresh Super Premium Salt’ from Meghna Group, and ‘Confidence Salt’ from Confidence Salt Ltd.

In the sector of Noodles, the most admired brands are ‘Maggi’ from Nestle Bangladesh, ‘Cocola’ from Cocola Food Products Ltd, ‘Mr. Noodles’ from Pran, ‘Doodles’ from New Zealand Dairy, ‘Ifad’ from Ifad Multi Products Ltd, ‘Sajeeb’ from Sajeeb Group, ‘Mama’ from Presidents Foods, ‘Knorr’ from Unilever Bangladesh Ltd, and ‘Chopstick’ from Square Foods.

Read Mobile Insurance Offers in Bangladesh Can Save Lives.

Beauty and Personal Care Industry

In Bangladesh, the local companies produce toiletries and perfumes related products under affordable price ranges. These local brands mainly target the niche of the low to middle price market. Almost 95% of the total market share is dominated by seven companies. Those are Unilever Bangladesh Ltd., Keya Cosmetics Ltd., Lily Cosmetics Ltd., Marks & Allys Ltd., Aromatic Cosmetics Ltd., Square Toiletries Ltd., and Kohinoor Chemical Company Ltd.

In the segment of Toilet Soap, Unilever Bangladesh Ltd solely owns about 43% of the local market share. The other three key players including Keya Cosmetics Ltd, Lily Cosmetics Ltd, and Kohinoor Chemical Company Ltd hold around 10% of the market share each.

Unilever Bangladesh Ltd is the leading company in the segment of Fairness Cream, Lotion, Shampoo, and Oran Care products.

Household Care Industry

In the Mosquito Aerosol category, ‘Xpel’ from Square Toiletries is the top brand in Bangladesh. Among the other popular brands, there are ‘ACI Mosquito Aerosol Spray’ from ACI Limited, ‘Hit’ from Godrej group, and ‘Mortein’ by Reckitt Benckiser Ltd.

In the segment of Laundry Detergent, the most popular brands are Wheel, Surf Excel, and Rin. All of these products are owned by Unilever Bangladesh Limited.

In the Liquid Antiseptic sector, ‘Savlon’ from ACI Limited is the market leader. Then ‘Dettol’ from Reckitt Benckiser Bangladesh Ltd occupies the second place in this category.

In the Plastic goods industry, the dominating players are RFL Plastics Limited, Bengal Plastic, and Partex Plastics Limited.

In the sector of Toilet Cleaner Liquids, the key player is ‘Harpic’ by Reckitt Benckiser Bangladesh. Among the other popular Toilet Cleaner brands, there are ‘Clean Master’ by Kohinoor Chemical Company, and ‘Shakti’ by Square Toiletries Ltd.

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Asian American households saw the biggest income growth of any racial or ethnic group in the United States over the past decade and a half — almost 8%, according to figures released Thursday by the U.S. Census Bureau.

Household income for Latinos grew by nearly 6% over that time, while households led by non-Hispanic whites and Blacks had comparatively stagnant income growth — 3% and almost 2% respectively — over the past decade and a half.

Nationwide, median household income grew 2.3% from the 2005-2009 period to the 2015-2019 period, according to the latest 5-year American Community Survey.

Economists said a lot of the difference in income growth among racial and ethnic groups has to do with the thriving job markets where Asian American and Latino-led households are concentrated — cities and communities in the West and Southwest.

“As the labor market tightened more in certain areas and in certain fields we would see more robust income growth for those groups,” Ohio State economist Trevon Logan said in an email. “Also, higher concentration in urban areas with larger job growth and increases in minimum wage can also play a role in income gains.”

While income growth has been comparatively flat in a vast majority of U.S. counties, it has been concentrated in a handful of communities, said William Spriggs, an economist at Howard University.

“So, I suspect recent Asian and Latino immigration has been to these high growth areas,” Spriggs said.

Education also played an important role, said Marlene Kim, an economist at the University of Massachusetts Boston. More than 54% of Asian Americans had a bachelor’s degree, the highest of any racial or ethnic group, compared to 32% overall for U.S. residents, according to the 2015-2019 American Community Survey.

By comparison, 35.8% of non-Hispanic whites, 21.6% of Blacks and 16.4% of Latinos had bachelor’s degrees.

“We are in a knowledge economy and a college education is key to getting professional jobs that pay well. Asians have the highest percentage of getting a college degree and I think you are seeing that effect,” Kim said. “Asians are more likely to be in professional and technical jobs, which are thriving and increasing their pay and income level.”

Read Also: ASEAN, China, other partners set world’s biggest trade pact

But there are wide differences among Asian Americans — a diverse racial category that include Americans with roots in China, India, the Philippines and other Asian nations. Americans of Indian origin had higher rates of college education than those of Cambodian and Hmong origin, according to a report last year from the Pew Research Center.

By the same measure, location and job markets also played a role in the stagnant income growth for Black-led households, with large numbers geographically clustered in the South, economists said.

“For Black households, we continue to see them struggle for the same reasons. Blacks are over-represented in public employment, which experienced anemic income growth,” Logan said. “Also, Blacks in rural areas, especially in the rural South, are located in places with substantial business losses and weak job growth.”

Discrimination in hiring and promotions also are factors as well as policy decisions, he said.

“For example, we know increasing the minimum wage would close racial income gaps, and Blacks are disproportionately located in states, localities that have not done so,” Logan said.

The concentration of Black high tech workers in places like Atlanta and Washington instead of Silicon Valley or Boston also worked against income gains for Black households, Spriggs said.

“As the economy emerged out of the Great Recession, essentially the key factor in what is being measured, discrimination in the labor market locked higher skilled Black workers out,” he said. “The extremely high level of geographic segregation of the Black IT work force prevents bigger gains from the largest middle-class sector for Black workers.”

National Urban League President and CEO Marc Morial said increasing the minimum hourly wage to $15 would create an income floor from which people could take care of their basic needs, but he added high tech needs to do a better job of hiring Black workers.

“This is the direction that jobs are going in,” Morial said. “There has been a lack of commitment to diversity, and in some cases, discriminatory hiring.”

The five-year American Community Survey measures all sorts of demographic traits about the U.S. in half-decade chunks. But the latest data doesn’t capture the economic upheaval caused by the pandemic in 2020, including how the unemployment rate for Asian Americans shot up from 2.6% to 12% before declining to 6.7% in the past year.

Households led by Asian Americans had a median household income of $88,204 over the five year period covered by the 2015-2019 American Community Survey, the highest of any racial or ethnic group. Asian Americans make up almost 6% of the U.S. population.

Nationwide, the median household income for 2015-2019 was $62,843. The median income for Non-Hispanic white households was $68,785. It was $51,811 for Latino-lead households and $41,935 for Black-lead households.

Speakers at a webinar discussion here underscored the need for bilateral cooperation in agriculture between India and Bangladesh to overcome the existing problems caused by COVID-19.

South Asian Network on Economic Modeling (SANEM) and Asian Confluence jointly organised the discussion meeting titled “Regional Cooperation in Trade and Development of Agriculture: Perspectives from Bangladesh and India.”

Conducted by Dr Selim Raihan, Executive Director of SANEM, the webinar hosted an expert panel discussion as academicians, researchers, journalists, agriculture experts, development practitioners, businessmen and students took part in it.

Dr Selim Raihan, also a professor of Economics department at Dhaka University, hoped that SANEM and Asian Confluence will continue to collaborate in fostering intellectual discussions promoting regional cooperation and trade.

“Farmers in Bangladesh don’t have any expertise on marketing of their products and thus they should be trained in this regard. However, increasing bilateral cooperation and trade in agriculture, political willingness is most important,” he added.

Sabyasachi Dutta, Executive Director of Asian Confluence, India East Asia Center at Shillong in India, described the necessity of cooperation between India and Bangladesh in agricultural sector.

“In the context of the ongoing pandemic, cooperation in agriculture has become all the more important. The effective role of think-tanks in increasing regional cooperation,” Dutta pointed out.

Abdus Salam, Managing Director of Organic Bangladesh Limited, said Bangladesh can gain advantage in export of agricultural products, in competition with other countries through regional cooperation.

“Such collaboration can benefit farmers of both countries, increase regional trade and assist in export earning,” he added.

Dr M Nahid Sattar, Associate Professor of Agricultural Economics department at Bangladesh Agricultural University, said the pandemic has affected income and in turn the consumption of the mass people, which has significantly decreased the sale of agricultural products.

To tackle these problems, he stressed the need for commercial transformation of agriculture and development of market management structure in Bangladesh.

 

Life is full of uncertainties. We can’t always anticipate what is coming ahead. Sometimes, destiny puts us in situations – whether good or bad – when we face an instant need for money. Sometimes our instant financial need overflows our budget or bank balance. Then we have no other choice left but to borrow money. Many of us feel ashamed of borrowing money from friends and relatives due to self-respect issues. Now, what’s the way out?

Nowadays, many banks and financial organizations in Bangladesh are offering ‘Advanced Loan against Salary’ to salaried executives. This type ‘Personal Loan’ is provided on the basis of an individual’s monthly salary multiples. This loan is also popular as ‘Any Purpose Loan’ as it is provided to fulfill any legitimate need of the borrower. Self-employed professionals, business owners, and landlords also get loans under these schemes.

You can take a personal loan to meet any ‘legitimate’ personal financial need, like medical treatment, education, tourism, marriage, home renovation, interior designing, purchasing consumer goods, purchasing different tools and equipment for office set up, etc.

In this article, we are gonna introduce you to some renowned scheduled banks and financial organizations that are currently offering worthwhile Personal Loan Deals in Bangladesh.

Read Top FMCG Companies in Bangladesh: At a Glance

How to Choose the Best Personal Deals in Bangladesh?

In this section, we have focused on some vital parameters to find which bank is providing the best personal loan deal for you.

Rate of Interest

Interest rates are basically two types: fixed and floating. From our survey, it revealed that the banks mostly set floating interest rates on their loan products.

The above info-graph shows the initial rate of interest for ‘Personal Loan’ for different banks in Bangladesh. Averagely, the initial interest rate fluctuates around 11 to 13 percent. A few banks like BCB demand a higher (about 17%) rate of interest. However, the rate of interest is about to change any time depending on respective bank policy.

Loan Ceiling

If you need a good deal of money for medical treatment or marriage or any other legitimate purpose, it is wise to check out which banks are offering the highest loan ceiling.

On average, most of the banks in Bangladesh sanction a maximum of 10 to 20 lacs in BDT under Personal Loan/ Any Purpose Loan/Advanced Loan against Salary scheme. For some banks the loan ceiling may be lower. For instance, NCC Bank offers maximum 1 lac BDT under ‘Personal Loan’ scheme.

Loan Amount at Salary Multiplications

Some banks are offering ‘Advanced Loan against Salary’. This kind of loan product is especially designed for salaried executives who draw salary through any government approved bank in Bangladesh. It depends on the bank policy how much money can you get against your current monthly salary.

The above graph reveals the trend of advanced loan against salary multiples offered by several reputed banks in Bangladesh. Researching a number of renowned scheduled banks in Bangladesh, we noticed that generally banks offer 10 to 15 multiples of the monthly salary amounts as ‘Advanced Loan against Salary’. However, EBL stands out from the other banks in offering the maximum multiples (up to 20 times) of salary as advanced loan.

Lowest Amount of Loan

For sudden financial requirement you may need to borrow a small range loan. The scheduled Banks in Bangladesh provide personal loan starting from minimum 25000 BDT.

Our research shows that most of the scheduled banks in Bangladesh provide a minimum 50 thousands BDT for ‘personal loan’ or ‘any purpose loan’. However, some banks – like City Bank and EBL – don’t approve applications for personal loan when the expected loan amount falls below one lac BDT.

Loan Repayment Tenure

Though loan tenure depends on the policy of respective bank, the tenure can be cut short depending on the borrower’s age. For instant, if banks set maximum age limit 60 years on loan-maturity. Then, a 59 year old person can get Personal Loan; but s/he gets only one year for repaying the total loan amount.

Starting from a minimum six months, an individual borrower usually avails 5 years period to repay his/her loan including interest. However, a few banks like NCC Bank and BCB sanction loan for limited tenure (3 years). On the other hand, NRBC Bank offers extensive tenure (6 years) for loan repayment.

How Banks Choose Potential Borrower for Personal Loan

The scheduled banks in Bangladesh provide ‘Any Purpose Loan’ or ‘personal loan’ or ‘Advanced Loan against Salary’ to the deserved customers who can meet the specific standards set by respective bank policy. In this section, we are gonna discuss some significant factors which the banks tend to evaluate before sanctioning any personal loan.

Debt Burden Ratio (DBR)

While evaluating any loan application, the banks evaluate the client’s income-expenditure profile and calculate the Debt Burden Ratio (DBR). In simple words, DBR calculates the burden of your liabilities (loan EMI, and other monthly expenditure) over your earning (monthly).

The maximum allowed range of DBR varies depending on monthly earning. For instance, banks may allow up to 60% DBR when you earn two lacs BDT per month. The same banks may not approve your loan loans when the DBR crosses 40%, if your monthly earning falls below fifty thousand BDT.

Our research shows that the renowned scheduled banks choose prospective clients with lesser DBR profiles. It seems that the possibility of loan approval increases while the DBR value decreases. While approving ‘personal loan’ the scheduled banks tend to keep the DBR range within 40 to 60 percentages, in general.

Age Limit

If you are a salaried executive you can’t get a loan after taking retirement from your office according to Government policy. In Bangladesh, the age of retirement is mostly 60 or 65 years. The scheduled banks approve ‘personal loan’ calculating the borrower’s age of retirement at the end of loan tenure. Usually, the banks want their clients to complete the loan tenure before hitting retirement age. However, the maximum age limit for getting a loan may vary depending on the borrower’s occupation type. And the minimum age of getting any loan starts from 18 years.

The above graph depicts the age range for personal loan approval by the government approved banks in Bangladesh. Mostly the banks are comfortable to offer loans to 21 years or older clients. The maximum limit of age is hovering around 60 to 65, on average. However, some banks like NCC Bank don't approve loan to clients over 50 years; whereas DBBL allows up to 70 years – at the end of loan tenure.

Monthly Earning

Banks are highly interested to offer ‘personal loan’ to salaried executives, professionals, business owners, landlords, self-employed and government employees who make handsome amounts per month on a regular basis. However, the minimum earning requirement for loan approval may vary depending on the prospective borrower’s occupation type. For instance, earning requirement is a bit flexible for government professionals.

The above graph represents the trend of minimum required monthly earning for salaried executives working in private sector organizations. A good number of banks are ready to offer ‘Personal Loan’ for minimum monthly earning of 15 thousands BDT. Average banks require 20 to 25 thousands earning per month. While a few financial organization and banks (like IPDC and NRB Bank) expect a bit higher level of earning.

Work Experience

The required length of work experience varies for government employees, private salaried executives, self-employed professionals, businessmen and landlords. Usually, the scheduled banks have flexible earning requirement for the renowned businessmen, Government officials, successful professional, etc.

The above info graph reveals the length of required work experience for salaried executives working in private sector. Mostly the scheduled banks are comfortable to provide loans to permanent executives working in well-known organizations. A significant number of banks want 2 to 3 years of continuous work experience with at least one year working history with the current employer.

Bottom Line

Opportunity of getting Advanced Loan against Salary is a windfall for many salaried executives in the moment of crisis. People from other profession can avail this opportunity taking ‘Personal Loan’ or ‘Any Purpose Loan’. Some banks are providing ‘Special Loan’ to professionals working under some specific sectors. Therefore, it behooves upon you to find an appropriate Loan Scheme that complies with your specific legitimate financial need.

Our research also shows that a good number of banks are offering as high as 20 lacs BDT as ‘Personal Loan’. However, under the scheme of Advanced Loan against Salary, the banks decide the loan ceiling counting monthly salary multiplications of the salaried executives. On average, the scheduled banks sanction 10 to 20 times of monthly salary as loan amount.

And, most of the banks provide 50 thousands BDT as minimum amount under ‘Personal Loan’ category. Though the scheduled banks in Bangladesh allow 5 years loan tenure, this term might be shorter depending upon the maximum age limit set by respective bank as well as the retirement age of the borrower from his/her current working place. Usually, banks prefer clients aged not less than 21 years and not more than 65 years.

Minimum required monthly earning ranges from 15 to 30 thousands BDT depending on specific policy set by respective bank. And, for work experience the scheduled banks require 1 to 3 years of continuous experience under reputed institutions.

In this article, we have analyzed ‘Personal Loan’ schemes offered by different scheduled banks and financial organizations in Bangladesh. Due to the inadequacy of time, budget, and manpower, we couldn’t research all banks. But we have tried our level best to overview the lucrative offers for Personal Loan in Bangladesh. Hope it helps!

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Also Read: Home Loans in Bangladesh

 

The emphasis on inclusiveness in finance means that not only are the days gone when you had to go to the bank for certain transactions like paying bills, withdrawals, etc. The advent of digital innovations in the field heralded a new era of paperless money transactions in the world during the Nineties. Appearing on the scene as the handmaiden of Fintech (Financial Technology) is the innovative approach to managing money called Mobile Financial Services (MFS).

MFS refers to branchless banking whereby financial services are offered to both banked and unbanked people efficiently under reasonable charge-rates. MFS offers advanced-level financial services combining traditional banking system with wireless telecommunication technology to assure instant and secured money transaction process.

What are the benefits of MFS? Like the formal banking system, you can do savings, send and withdraw money via MFS. You can also pay your utility bills using this platform. Nowadays, MFS platforms through their ‘mobile wallets’ are offering wide-ranging facilities like remittance, purchasing goods and services, etc. MFS has speeded up the process of making deposits, withdrawing cash, sending or receiving funds using a registered mobile account. In simple words, MFS provides easy access to the formal banking system.

In Bangladesh, MFS got popular in the name of Mobile Banking. Generally, the agents of respective banks enable these services after registering the mobile account. Under this platform, a mobile account owner can withdraw cash and send/receive money via the independent agent locations without visiting any bank. By virtue of MFS, people living in remote locations of the country can save money to their mobile accounts at nominal amounts without going through the hassle of moving to banks physically.

The concept of Mobile Financial Services (MFS) is still new in Bangladesh. Our report aims to introduce the readers to the leading MFS provider companies and compare their offered services in Bangladesh.

Read Top FMCG Companies in Bangladesh: At a Glance

The Best Mobile Financial Service (MFS) Providers in Bangladesh

Mobile financial services (MFS) are revolutionizing the traditional money transaction process via formal banks. Bangladesh Bank has allowed 16 leading banks to offer MFS in Bangladesh. In this special report, we are going to focus on the top-performing MFS providers in Bangladesh.

Leading the way: bKash

The spectacularly successful bKash is the major player in the field of MFS in Bangladesh. Backed up by Brac Bank, bKash started their MFS program in 2011. By 2019 it had 3.1 crores, active users. With some 180,000 agents countrywide effectively acting as bank branches to facilitate their user base, bKash is holding above 80 percent share of the total MFS market in Bangladesh. Up to July 2019, more than TK 37,477.35 crore has been transacted through bKash MFS.

They offer MFS include cash-in, cash-out, bill payments, mobile recharge, remittance, donation, purchasing movie tickets, saving, etc. These can be availed through the prominent telecommunication networks in Bangladesh.

Rocket

Dutch Bangla Bank Limited (DBBL) was the first bank that launched banking services and financial facilities using the mobile communication network in 2012. DBBL provided bank-led mobile banking services that were re-branded as ‘Rocket’. DBBL’s Rocket is currently the second-largest player holding around 17 percent market share in the domain of the mobile banking sector of Bangladesh.

Rocket services include cash deposit, cash withdrawal, ATM money withdrawal, mobile top-up, person to person (P2P) Transfer, bank account to Rocket account transfer, merchant payment, international remittance, utility bill payment, salary disbursement, government allowance disbursement, etc. Customers can easily avail of the DBBL provided mobile banking services via the ‘Rocket’ app.

SureCash

SureCash is another potential MFS platform launched by Progoti Systems Ltd in 2015. SureCash represents an open network of payment incorporation with several local banks, with above 1,000 payment partners. SureCash developed their exclusive mechanism focusing on government education programs, schools, colleges, utilities, etc.

SureCash MFS offers money transfers via cash-in and/or cash-out, person-to-person (P2P) money transactions, inward foreign remittances, utility bill payments, government charges/payments, educational institute fee payments, purchasing goods and services, etc. Clients can enjoy SureCash MFS platform by downloading the SureCash app from the Play Store.

Nagad

Bangladesh Post Office (BPO) launched ‘Nagad’ a Digital Financial Service (DFS) in November 2018. Nagad is a re-branded version combining the Electronic Money Transfer System (EMTS) and Postal Cash Card service previously announced by BPO.

Nagad MFS platform covers money transactions via Cash-In, Cash-Out, and Send Money. These MFS also include popular services like mobile recharge. The upcoming services include utility bills payment and an e-commerce payment gateway. Nagad MFS can be availed by ‘Nagad’ mobile Apps.

Ease of Opening Account

Forget those days, when people need to visit the bank physically to perform formalities – like filling out an account opening form, submitting documents personally – and then had to wait for around 2 weeks to receive the checkbook. The popular MFS platforms in Bangladesh offer a simple account opening procedure. You can open bKash, Rocket, SureCash, and Nagad accounts through Robi, Airtel, Teletalk, Grameenphone, and Banglalink.

For bKash

You can open a bKash account visiting their service centers with necessary documents like National ID or Driving License or Passport, Photograph, and your mobile phone with SIM card. All you need to do is fill out the bKash Account Opening Form, then press your thumbprint and finally put your signature properly.

After the verification, you can avail all MFS services including Cash Out, Mobile Recharge, make Payments, etc. offered by bKash. Dialing *247# you can enjoy bKash MFS services 24 hours a day, and 7 days a week.

Via ‘bKash’ App.

If you would like to open a bKash account via the app, it might take only a few minutes. First, download the bKash app from Google Playstore. Then, tap new account registration and carry on the process. After successful submission of all this information, bKash will send you a confirmation PIN. Then you can dial at *247# to avail bKash MFS services 24 hours a day, and 7 days a week.

Rocket

You can open a Rocket Account via Visiting Centers. First, you need to fill up and submit the KYC Form to the agent along with your photograph and National ID (NID). Then, the agent will help you to complete the process. Your Rocket account will be created in the DBBL system which is your mobile SIM number plus one check digit. You will receive a confirmation SMS containing your Rocket account Number You are also recommended to remember the check digit.

You can easily open an account via the ‘Rocket’ app after downloading it from the Play store.

SureCash

You can open your SureCash account by visiting the nearest SureCash center or authorized SureCash agent. To open a SureCash mobile banking account you need to bring your own mobile phone, one copy passport size photo, and a photocopy of your own NID or passport or driving license. First, an authorized SureCash agent will help you to carry out the registration process.

When the registration is done successfully, you will get an SMS on your mobile containing a 12 digits wallet number. The first 11 digits are your mobile number and the 12th digit is the check digit. Check digit will you security against any kind of incorrect transaction.

You can also do the registration process via ‘SureCash’ app after downloading it from the Google Play Store.

Nagad

For opening Nagad account, first, download the ‘Nagad’ App from Google Play Store or App Store. All you need is your original National Identity card (NID). Navigate to the account opening tab and follow the system.

Money Transaction Service

Bkash Money Transaction Service

Industry leader bKash MFS platform allows you to transact money in several ways, like recharging money to your own bKash account, releasing money from your bKash account, and sending money to another owner’s bKash account.

bKash Cash In (Cash Deposit)

You can deposit money to your bKash Account via ‘Cash-in’ service. For this purpose, you need to visit any bKash agent. Then, inform that agent how much amount you wanna Cash In. Then the bKash agent would help you to complete the procedure. If the desired amount is BDT 5,000 or higher, you are required to mention your National ID Card number. Bkash Cash-in is a free service. So you don’t have to pay any extra charge besides the cashed-in money.

bKash Cash Out (Cash Withdrawal)

If you have adequate balance in your bKash Account, you can use the ‘Cash Out’ service under bKash MFS to withdraw money from your bKash account whenever you want. You can avail of the ‘Cash Out’ service either from any bKash agent or ATM.

Bkash ‘Cash-out From Agent’ service allows a minimum withdrawal limit of BDT 50 to BDT 25000 at maximum. For any amount of withdrawal, the charge is 1.85%. To Cash Out from your bKash Account, visit any bKash agent. If the amount is BDT 5,000 or higher, you would’ve to mention your National ID Card number.

After completion of the procedure, both you and the agent will receive a confirmation message. Don’t forget to count the amount provided by the agent before signing the Register. Bkash's‘ Cash-out From Agent (via app)’ limit is 50 BDT to 25000 BDT. The charge is 1.5%.

Bkash ‘Cash-out From ATM’ service offered money withdrawal limit ranges from BDT 2000 BDT to 25000 BDT. The cash withdrawal charge is 1.5%, which accounts for BDT 30 for withdrawal of BDT 2000. When you are requesting ATM Cash Out, the process is a bit different. Get the required security code to withdraw cash from BRAC Bank and any Q-Cash ATM.

To withdraw cash from BRAC Bank ATM, visit a booth where Cash Out from bKash Account is enabled. The ATM screen will guide you to carry out the process. Don’t forget to check the entered information on the ATM screen. After the cash withdrawal, collect your receipt. You will receive a confirmation SMS from bKash.

bKash Send Money

Send Money is another great bKash MFS feature that allows you in transferring money from your bKash Account to another owner’s bKash Account. Limit ranges from minimum BDT 10 to BDT 25000. Bkash tariff is BDT 5 for sending any amount. To send money navigate your bKash Mobile Menu by dialing *247#. Pick the “Send Money” option and follow the system. When the process is done, both you and the receiver will receive a confirmation message from bKash. You can 'Send Money' free of cost via the bKash App!

Bank to Bkash money transaction is free. Now bKash clients can transfer money instantly from Bank account to bKash account number via Internet Banking. You will find the list of banks on the bKash website, to transfer money using the bank’s internet banking.

Money transfer from Card to Bkash is totally free. You can deposit money to bKash customer account from Mastercard. A bKash account owner (active account) can draw money from any Mastercard, Debit card, Credit card and Prepaid card issued by any Government approved Bank or Financial Institutions in Bangladesh.

Rocket Money Transaction Service

Like bKash, the Rocket MFS allows cash deposits, cash withdrawals, and sending money services. You can get this service both from agents and the ‘Rocket’ app.

You can avail of the cash-in (deposit) service from any DBBL Branch and DBBL agent. This service is also available at UISC, Banglalink, Airtel, and Citycell retail points as well as Mobicash marked outlets of Grameen Phone.

When you hand over the cash to the DBBL Agent, s/he will initiate the transaction from his/her mobile account by dialing *322#. The Agent will issue you (customer) a receipt. The system will send an SMS to your (customer) mobile Rocket account number. For security, don’t forget to check the received amount

You can get cash-out (withdraw) service from any DBBL Branch and ATM, DBBL authorized or own agent, Citycell, UISC, Banglalink, Airtel retail points, and Grameenphone Mobicash outlets. First, you need to ask the DBBL Agent how much money you want to withdraw. Then, the agent will initiate the transaction from his/her mobile account by dialing *322#. After completion of the procedure, the system sends an SMS to your (customer's) mobile. The agent will hand over the money to you (customer).

You can also get the cash-out (withdraw) service using any DBBL ATM Booth. In a normal situation, a screen will pop up on the ATM monitor indicating that the ATM is ready for designated financial transactions. For cash ‘Rocket’ withdrawal service, press the ‘Mobile Banking’ Button. Then type your 12-digit Rocket account number on the ATM screen. Press the ‘Correct’ button after checking and collect the money with the receipt.

DBBL Rocket offers the ‘Send money’ service, which allows you to transfer money from one Rocket account to another Rocket account. To enjoy this service from the DBBL Rocket account, all you need to do is just dial at *322# and follow the procedure mentioned on the DBBL website.

You can also transfer money from bank account to your DBBL Rocket account or vice versa. This MFS also allows you to transfer money from any DBBL Debit Card to DBBL Rocket account. Dial at *322# to avail this service and complete the procedure according to in DBBL website.

SureCash Money Transaction Service

You can send money from your SureCash mobile account to another SureCash account within a few seconds. The money transaction process is simple and fast. To get this service, just dial at *495# and navigate to SureCash USSD menu. Then press ‘REPLY’ and enter ‘1’ (Send Money). When the procedure is done, both you and the recipient will get a confirmation SMS from SureCash.

Table: SureCash Transaction Limit

Note. Reprinted from SureCash. (n.d) ‘Transaction Limit’. Retrieved January 21, 2020 from surecash.net/transaction-limit/.

Nagad Money Transaction Service

Like bKash, Rocket, and SureCash, the ‘Nagad’ MFS platform includes the ‘Send money’ service. It will allow you in sending or transferring money from your ‘Nagad’ mobile account to another owner’s ‘Nagad’ account. The process is very easy. Go to your Nagad mobile menu to navigate the send money option. On completion of the procedure, both you and the recipient will get a confirmation SMS on your respective mobiles from the Nagad system.

Ease of payments

The leading MFS providers in Bangladesh have made the purchasing procedure easier and faster than ever before. Now you can make the payment – for purchasing goods or utility bills or different types of fees and charges – within a few moments without going through the hassle of physical movements.

Payment via bKash

You can easily send payments from your own bKash mobile account to another “Merchant” who accepts “bKash Payment”. This MFS is available at more than 47,000 outlets countrywide. To bKash your Payment navigates to your bKash Mobile Menu by dialing *247#. Then, choose the “Payment” option and follow the method mentioned on bKash website.

Many people suffer electricity line cut for not paying the bill on time due to many reasons like sickness, lack of time, traffic jams on the road, etc. Thanks to bKash MFS for initiating the ‘Pay Bill’ service. Now you can pay your Electricity bill and other utility bills anytime and from anywhere using bKash ‘Pay Bill’ service. Just dial at *247# to recharge your DESCO Smart Pre-paid Meter.

Payment via SureCash

SureCash MFS platform includes an exclusive service for sending fees to schools and colleges. Now you don’t need to visit the school or college physically for paying the education fees; rather you can pay while staying at home. It not only saves you time but also reduces hassle. To get this service, dial at *495# and navigate to SureCash USSD menu. Then, press the REPLY tab and enter 3 (for Payment). And follow the system mentioned on SureCash website.

Like bKash, SureCash MFS offers the utility bill payment service. You can pay municipality bills as well as utility bills via SureCash. It gets you rid from the stress of visiting any utility office or bank branch for paying bills. Just dial at *495# and open your SureCash USSD menu. Press REPLY tab and enter 3 (Payment). And follow the designated system.

Surecash E-commerce Payment

SureCash MFS allows you to purchase goods online, which is a boon for busy people. The process is quite simple. Just pick your desired product and go to cart (payment). Then, select SureCash as a payment option and enter your SureCash wallet number. When the payment is done, you will receive a confirmation SMS.

Another feature of SureCash MFS is the Credit Card Payment option. To enjoy this service, dial at *495# and navigate to your SureCash USSD menu. After Pressing on the REPLY tab, enter ‘3’ (Payment). Then, enter ‘credit card payment’ as KEYWORD. Choose credit card type and insert your credit card number. After completion of the payment process, you will receive a confirmation SMS.

Does it pay to save?

Many people, especially those living in remote places, don’t practice saving to avoid the annoyance of visiting banks physically. Thanks to the latest technology of Mobile Financial Services (MFS). This platform not only allows the user to transact money or purchase products; but also encourages users to build the habit of savings at nominal amounts any time they feel convenient.

Bkash Savings Facility

Additionally bKash MFS promises to keep your money safe. In addition to this, bKash offers up to 4% Interest (annual rate) on the Savings of your bKash mobile account. However, this interest offer is applicable to the bKash Customer Accounts only. Dial at 16247 from your bKash mobile account to avail this service.

Table: bKash Slab wise Interest Rate Per Annum

Note. Reprinted from bKash. (n.d) ‘Interest on Savings’. Retrieved January 21, 2020 from bkash.com/products-services/interest-on-savings.

For example, if an individual (bKash account owner) keeps a minimum balance of BDT 1,000 in his/her bKash account throughout a month, does at least 2 transactions, and keeps an average day end balance between BDT 1,000 to BDT 5,000.99 in that month. Then, that individual (bKash account owner) will receive 1.5% rate of interest (at an annual rate) upon the average balance of that specific month. VAT & AIT charges will be deducted as per the rules of the Government of Bangladesh.

Nagad Sanchay Details

Bangladesh Post Office (BPO) has initiated a praiseworthy saving plan through their MFS platform ‘Nagad’. Nagad claims that their customers will get the highest profit for saving money in their Nagad accounts. All regular Nagad customers are eligible for availing the profit as per the table below.

Table: Nagad Profit Rates

Note. Reprinted from Nagad. (n.d) ‘Sanchay Details’. Retrieved January 21, 2020, from nagad.com.bd/service/sanchay/.

Other MFS Benefits

Both bKash and Rocket MFS provide international remittance transfer services. Remitter can transfer the remittance from an Exchange House (nominated by bKash or DBBL) through a partner Bangladeshi Bank (nominated by bKash or DBBL). The remitted money will be transferred to the beneficiary's bKash/Rocket account within a few days and the beneficiary will instantly receive an SMS when the deposit takes place.

Bkash MFS allows ‘donation’ services for healthcare service, education, and zakat. You will find a list of donation-receiving organizations in the bKash website.

Mobile Recharge service is available for any bKash/ Rocket/ Nagad/ SureCash Account holder to recharge any Grameenphone, Banglalink, Robi, Teletalk, and Airtel number. You can recharge to your own mobile account or other owner’s mobile account number.

Bottom Line

According to Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, about 33% of the total population of Bangladesh has no access to formal banking service or any micro-financial institution. In this situation, MFS appeared as a boon for the rural unbanked people in Bangladesh. MFS has successfully brought around five crores, unbanked Bangladeshi people, under formal financial services in the last few years. According to Bangladesh Bank data, the average daily transaction through MFS is about Tk 1263.96 crores in November 2019.

Recently, Mobile Financial Service (MFS) initiatives are flourishing in Bangladesh. With the aim to develop a highly competitive, economical, commercially-viable, and secure MFS market in the country, Bangladesh Bank issued MFS guidelines for Banks in 2011.

bKash (BRAC Bank) currently dominates the MFS space accounting for 80% of the market followed by Rocket (DBBL) claiming 17% of the total market share. The two leading MFS providers (bKash and Rocket) are dominating 97% of the country’s total MFS market share.

So far we have highlighted the major features offered by the top 4 (bKash, Rocket, SureCash, and Nagad) MFS platforms in Bangladesh. All of these MFS platforms are easy to use. The customers can avail of these MFS services through downing respective apps from the Google Playstore.

All of our discussed MFS platforms provide cash deposit and cash withdrawal services. But Bkash and Rocket MFS are leading ahead of the MFS platforms by virtue of their wide-ranging money transaction service that includes money transfer to the mobile account from bank and debit card.

MFS platforms in Bangladesh have created new opportunities for purchasing goods online from e-commerce websites. In this race, bKash and SureCash MFS left the others behind. You can send online payments and utility bills via bKash MFS. You can also send utility bills and e-commerce payments through SureCash MFS. Besides these, using SureCash platform, you can pay educational institute fees, which is certainly a huge plus.

The banks provide interest on deposits, whereas the MFS platforms in Bangladesh offer interest on your mobile financial balance. bKash offers a good amount of interest per annum for keeping money in your bkash mobile account. Nagad provides a considerably higher rate of interest for saving in your Nagad account.

Undoubtedly, the current MFS platforms have created new opportunities for people in doing business, education, saving, and other personal tasks in a faster and smarter way.

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