Wednesday, September 23, 2020 | ePaper

Income erosion slows down mobile banking

  • Print
Economic Reporter :
Mobile banking registered negative growth in terms of transactions in June, with a significant number of people losing their incomes as a result of the coronavirus pandemic.
Many people have gone back to their villages after losing jobs during the last two to three months. They thus lost the ability and need for using mobile financial services.
According to central bank data, in June, person-to-person transactions made through mobile phones decreased by 11.4 percent compared to those in May. The number of transactions dropped by 9.1 percent and the total amount of transactions fell by 5.8 percent in the month.
Shamsuddin Haider Dalim, head of Corporate Communications and Public Relations at bKash Limited, a subsidiary of Brac Bank, told that "In May, Eid-ul-Fitr was one of the reasons for an increase in transactions. In June, mobile banking activities, especially person-to-person money transfers, slowed down a bit due to many people's income losses at this time of the pandemic."
Average daily transactions made through mobile phones came down to Tk1,494 crore in June from Tk1,535 crore a month earlier, according to the latest data from Bangladesh Bank.
However, in June the number of active users of mobile financial services increased by 8.8 percent to around 3.86 crore. Dalim expressed his satisfaction over the opening of fresh accounts and use of active accounts.
He hoped that transactions would increase ahead of Eid-ul-Adha.
Sector insiders said the country's mobile banking service providers had come by a fresh 62.21 lakh registered clients due to transfer of wages of export-oriented factories under the stimulus package of Tk5,000 crore - which later increased to Tk7,500 crore -  in the last three months (April to June).
Although there was a countrywide shutdown from March 26 to May 31, the number of fresh registered clients reached 69.40 lakh, a tremendous growth in account opening, during the period.
In June, salary disbursement through mobile banking increased by 7.2 percent, payments of utility bills by 66 percent and merchant payment by 73 percent, according to the central bank data.

More News For this Category

Mercantile Bank Limited (MBL) signed Memorandum of Understanding (MoU) with PrimaDollar, UK to facilitate Fintech based Export Factoring services to the customers of MBL exporting under Open Account credit terms on Monday. Under Export Factoring, exporters of MBL may be eligible to receive up to 95 per cent of the deferred value of the goods on sight basis from PrimaDollar, UK. Shamim Ahmed, DMD of the bank and Munawar Uddin, Country Manager of PrimaDollar, signed the MoU on behalf of their respective organizations at bank's premises. Senior officials from both the organizations were also present.

Mercantile Bank Limited (MBL) signed Memorandum of Understanding (MoU) with PrimaDollar, UK to facilitate Fintech based Export Factoring services to the customers of MBL exporting under Open Account credit terms on Monday. Under Export Factoring, exporters of MBL may be eligible to receive up to 95 per cent of the deferred value of the goods on sight basis from PrimaDollar, UK. Shamim Ahmed, DMD of the bank and Munawar Uddin, Country Manager of PrimaDollar, signed the MoU on behalf of their respective organizations at bank's premises. Senior officials from both the organizations were also present.

BEPZA signs $56.33m new investment agreement during pandemic

BEPZA signs $56.33m new investment agreement during pandemic

Business Desk :Bangladesh Export Processing Zones Authority (BEPZA) has signed 56.33 million US dollar new investment agreement with seven companies during Coronavirus (Covid-19) pandemic.Among them, five companies are foreign owned

Speakers for master-plan under one specific observing authority

Business Desk :Speakers at a webinar on Tuesday observed that adequate development, diverse logistics infrastructure, including ports and multimodal sub-regional transport connectivity are important to improve Bangladesh's trade competitiveness and

Emirates collaborates with Huawei to Chinese market

Business Desk :Emirates has enhanced collaboration with Huawei, one of the world's top smartphone brands, to promote the Emirates app to Huawei phone users.Since January 2020, Emirates passengers have been

BUILD for creating opportunities for women

Business Desk :Business Initiative Leading Development (BUILD) on Tuesday underscored the need for creating more opportunities for women Micro, Small and Medium Enterprises (MSMEs) in stimulus package.BUILD made the observation

148 businesses fined for adulteration

Business Desk :With a view to stopping sale of adulterated food items and goods as well as freeing the consumers from clutches of unscrupulous traders, the Directorate of National Consumer

Stocks continue downbeat

Economic Reporter :Country's both the bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) continued downbeat maintaining the trend of previous three sessions' correction as risk-averse investors rushed to

NHFIL gets top bosses

Business DeskMahbubur Rahman and Syed M. Altaf Hussain have been elected as the Chairman and Vice-Chairman of National Housing Finance and Investments Limited respectively. The 219th board of directors meeting

ABM Mokammel Hoque Chowdhury, Managing Director of Union Bank Limited, inaugurating its Adhunagar Sub-Branch in Lohagara in Chattogram through video conference from head office recently. Hasan Iqbal, DMD, high officials, managers of different branches of the bank, AKM Fazlul Hoque, Principal of Alhaj Mostafizur Rahman College, Lohagara and local elites were also present.

ABM Mokammel Hoque Chowdhury, Managing Director of Union Bank Limited, inaugurating its Adhunagar Sub-Branch in Lohagara in Chattogram through video conference from head office recently. Hasan Iqbal, DMD, high officials, managers of different branches of the bank, AKM Fazlul Hoque, Principal of Alhaj Mostafizur Rahman College, Lohagara and local elites were also present.

.

HSBC, StanChart's Hong Kong shares drop after 'FinCEN' leak

Reuters :HSBC and Standard Chartered's Hong Kong shares dropped on Monday after media reports that they and other banks moved large sums of allegedly illicit funds over nearly two