Selim R. F. Hussain,
Managing Director and CEO, BRAC Bank

The Daily Star (TDS): How BRAC Bank is digitally integrated with MFS platforms? How does its partnerships with multiple MFS providers empower its customers?

Selim R. F. Hussain (SRFH): BRAC Bank is one of the most connected banks for integrating mobile financial services (MFS) providers. Since 2019, it has been fully integrated with bKash and Rocket, the country's two largest MFS companies. Later, the bank onboarded Upay and Tap and payment services companies OK Wallet, iPay, and Cashbaba. The respective customers of BRAC Bank and MFS partners can transfer money both ways—from bank to wallet and wallet to bank.

BRAC Bank is proudly a pioneer as the first bank in Bangladesh to revolutionize SME loan instalment payments through the bKash App, enhancing our cutting-edge omnichannel customer service strategy. This ground-breaking solution offers instant SME loan adjustments from bKash wallets, empowering businesses to make seamless loan repayments even on weekends. It provides unparalleled convenience for SME customers nationwide, eliminating the hassle of bank visits. Moreover, this innovative facility propels our CMSME clients towards embracing digital payments via bKash, significantly boosting cashless transactions and driving financial inclusion.

Furthermore, bKash agents and distributors can now enjoy 24/7 cash management services of BRAC Bank for emoney recharge and encashment. More than 6,000 agents and distributors from the SME segment have so far availed of the services, transacting BDT 2,200 crore. Such 24/7 Cash Management Services are also well-aligned with our strategy to position ourselves as the Preferred Transactional Bank for SMEs.

The bank's corporate and institutional clients use bulk transfers to pay the salaries of garment factory employees through bKash. bKash merchants and other bank customers use BRAC Bank's online payment gateway for ecommerce transactions and pull money service. Another extraordinary convenience is that any bKash account holder can make cash out from BRAC Bank ATM. With seven crore bKash customers, the impact of ATM cash withdrawal is of great significance.

The partnership with MFS aims to provide banking convenience and a delightful customer experience.

TDS: How MFS providers help BRAC Bank expand its outreach taking banking services to grassroots level where physical branch setup is not financially viable?

SRFH: Mobile financial services have revolutionized the financial and banking ecosystem in Bangladesh. People living in remote areas of the country can now avail themselves of everyday banking services, as many banks have forged partnerships with MFS companies. This collaboration serves the banks in a significant way, as the brick-and-mortar branch model is not financially viable in many rural areas.

For example, more than 800,000 Astha App users can now send money and do digital transactions with bKash, Rocket, Upay, and TAP customers. A completely digital transaction opens up vast opportunities as there is no need for a branch or customer to visit a branch or outlet for the transaction.

BRAC Bank has embarked on a digital transformation journey with massive technology overhaul projects, including integration with MFS companies. The bank has four objectives for digital transformation: the first is to enhance customer service, the second is to increase revenues and the number of customers, the third is to reduce operational costs, and the fourth is to make our system more transparent and auditable.

TDS: What new things BRAC Bank will bring to the customers in future to provide benefits through MFS partners?

SRFH: BRAC Bank will partner with other MFS companies to provide customers with more transaction options. Along with the SME customers, loan repayment and disbursement facilities through MFS will be expanded to other customers.

MFS has boosted business growth, increased productivity, and helped small entrepreneurs expand their operations, particularly in rural areas. Moreover, mobile financial services have revolutionised the remittance landscape in Bangladesh. Given these multi-faceted benefits, BRAC Bank will scale up integration with MFS in many ways.