Open up MFS to telcos: Tarana

Mobile operators and other players should be allowed to provide mobile financial services (MFS), in a bid to ensure competition and benefit the masses through financial inclusion, State Minister for Telecom Tarana Halim said at a roundtable yesterday.

Tarana said the telecom and banking regulators should work together to formulate a model of regulation, which will help the operators and existing players to enter digital financial services.

Such a move will allow MFS to cover more unbanked people, she said. “I think mobile operators are deprived of the opportunity,” she said.

Marginal people and others who live in hard-to-reach areas need to be brought under the banking network, Tarana said at the discussion on "financial inclusion in Bangladesh: opportunities, challenges and way forward through digital financial services" organised by Telecom Reporters' Network, Bangladesh (TRNB). To overcome the challenges, Tarana said the two regulators -- Bangladesh Telecommu-nication Regulatory Commission and Bangladesh Bank -- should work closely, and if possible, sign a memorandum of understanding to regulate the sector jointly.

Emphasising partnerships for an MFS ecosystem, she said there is no monopoly created by the government. Rather, bKash, an MFS provider, has established a monopoly on the industry by dint of its own quality and services, she added.

To foster competitiveness, partnership should be strengthened, she said.

Of the total mobile money, bKash controls more than 90 percent, by their outstanding efforts in bringing people under the banking network.

By the end of June, the total number of registered MFS clients in Bangladesh stood at 3.62 crore and total transactions reached Tk 23,151.24 crore with average transaction at Tk 771.71 crore a day, according to BB.

Das Gupta Ashim Kumar, an adviser of bKash, said the company is working to offer more pro-people services. This is a properly regulated institution, and there is a move to destroy its success, he added.

Zulfiqar Ali, BTRC director (system and service), said, “Partnerships in the sector should be opened and the market would decide who will run the business. The issue of monopoly won't come.”

Everybody should forget whether the service is bank-led or mobile-led and rather, the regulator should think about a business-led policy and go for financial inclusion, he said. Current regulations are not increasing inclusion, he added.

Shah Alam, deputy inspector general of the Criminal Investigation Department of Bangladesh Police, highlighted the nature of the crimes in the sector and emphasised building more awareness.

Financial crimes are increasing every day and less than one percent of those crimes are reported, he added.

The situation went out of control for a lack of regulation in this segment, he said.

Progya Paramita Saha, deputy director of BB, said they are working on a new policy for the sector.

TIM Nurul Kabir, secretary general of Association of Mobile Telecom Operators of Bangladesh, said boosting digital financial inclusion is a must, and to head to that goal, digital regulation is needed.

Rashed Mehedi, president of TRNB, presided over the discussion, while Secretary Shamim Ahamed made a presentation.