Banglalink, the leading operator in Bangladesh, has won the International Association of the Money Transfer Networks (IAMTN) ‘Best New Service’ Award for Mobile Remittance services, powered by Comviva’s mobiquity mMoney.
Remittance inflows contribute $10 billion in foreign exchange annually equivalent to 9% of Bangladesh’s GDP. However 40% of remittance inflows bypass formal channels primarily because of asymmetries in access to retail payment infrastructure. Many beneficiaries who receive remittances live in rural areas and incur high travel and opportunity costs when going to the nearest payout point, which functions as a disincentive to transfer money over formal channels.
Banglalink’s Mobile Remittance service in collaboration with its partner banks Dhaka bank and Eastern Bank transforms the mobile into a convenient cash-free and card-free transaction medium, enabling customers to receive funds from overseas foreign workers into a secure, wallet account. Beneficiaries can convert the electronic value into cash at any partner bank accredited outlet branded as ‘banglalink Mobile cash Point’.
Speaking on the occasion, , Bangladesh said, ‘We are honoured to win this award as it stands testament to our goal of making a difference to people’s lives by bringing new and affordable services to everyone. We chose to partner with Comviva due to its leadership in the mobile financial services space and its ability to deliver mobile money services efficiently. Besides we have also carefully partnered with two of the most advanced private commercial banks of the country namely Dhaka Bank Ltd and Eastern Bank Ltd as our banking partner for the service which gives us access to their global network of partnership with significant number of exchange houses all over the world. As a result, Banglalink customers now have affordable, convenient and easy access to mobile money services. We see mobile money services having a positive and far-reaching effect on the overall economy.’
‘Monies sent home by migrants constitute a critical livelihood strategy for an approximate 7 million households in Bangladesh,’ said Solaiman Alam, head, m-commerce, Banglalink. ‘High fees charged by remittance service providers, and low level of banking penetration among rural people compels a sizeable segment of non-resident Bangladeshis (NRBs) to use informal channels to remit money. This remittance shadow market represents a substantial welfare loss for remitters, who are forced to send money home via unreliable, time-consuming and inefficient remittance channels.’
Banglalink has teamed up with leading banks in Bangladesh to ensure the Mobile remittance service is available widely. Banglalink mobile remittance service is already available at more than 1,000 Mobile Cash points throughout Bangladesh as well as 100,000 agent locations in 20 countries.