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

The Daily Star (TDS): How is Bangladesh progressing in its transition to a cashless economy?

Selim R. F. Hussain (SRFH): The government and financial institutions are putting numerous plans into action to encourage digital payments. These days, customers use banking apps and mobile financial services (MFS) like bKash for cashless payments. Digital transactions are becoming popular daily, and people increasingly prefer cards, mobile apps, and MFS wallets instead of cash payments for greater convenience.

TDS: What innovative steps has your bank taken to accelerate the shift toward a cashless economy, and how have they impacted customers?

SRFH: BRAC Bank works closely with its customers, partners, regulators, and government to advance toward a cashless economy. It has played a leading role in every initiative by the Bangladesh Bank toward digital payment.

We provide charge-free data for our app 'Astha', offering the highest fund transfer limit using the app. To promote digital transactions, we keep fund transfers charge-free for our 'Astha' users. The app is now a family of more than 7 lac users with monthly transactions of BDT 17,000 crore.

We are issuing dual-interface cards to our customers, through which our customers can perform a certain amount of transactions only by tapping the card. We provide discounts and cashback offers to our cardholders and mobile app users to promote cashless transactions.

Our internet banking platform for corporate and commercial customers, 'CORPnet', provides seamless transaction banking services with a straight-through payment facility. The bank has already established API connectivity with the National Board of Revenue, WASA, City Corporation, and other entities to facilitate digital bill and fee payments. Our customers enjoy e-commerce payment through VISA and MasterCard using our state-of-the-art Online Merchant Service Portal.

As a leader, we have connected to the highest number of MFS providers, offering customers the convenience of transferring funds between their bank account and MFS wallet, reducing the need for cash transactions.

We also offer corporates the option to pay salaries to their workers through bank to bKash, which is contributing to reducing cash transactions.

 This Ramadan, BRAC Bank offers exclusive discounts at over 1,200 partner outlets nationwide, where customers can go cashless in transaction. They do not need to carry cash at this time of Eid shopping spree when malls are over-crowded.

TDS: What policy changes or government initiatives do you believe are crucial for making digital transactions more inclusive, secure and widely adopted?

SRFH: A strong partnership between the government and the private sector is key to building a cashless ecosystem. Reliable, high-speed internet is essential to prevent transaction delays, enhancing customer experience and eliminating fears of transaction loss. Financial institutions, mobile operators, and the government should offer free or low-cost data for digital payments.

Smartphones are necessary for QR code and mobile app payments, yet many still use outdated button phones. Financial institutions and telecom providers could offer loans for smartphone purchases, while the government should take measures to reduce costs. Incentives and promotional offers should be introduced to make cash payments expensive and to reward digital payments.

Finally, cybersecurity is crucial as digital transactions grow. Bangladesh Bank could establish a central cybersecurity forum with financial institutions, MFS providers, regulators, and cybersecurity experts to share knowledge, issue alerts, and mitigate emerging cyber threats effectively.