Corporate
bKash generates Tk70cr profit in March quarter
The country’s leading mobile financial service (MFS) provider bKash has generated Tk70 crore in profit in the first quarter, marking 95% year-on-year growth.
The steady increase in profits can be attributed to the fintech company’s strategic expansion of services, enhanced user experience, and a growing customer base, according to its officials.
They added that it has successfully leveraged technological innovations to streamline operations and offer a diverse range of financial products, from mobile payments to micro-savings and loans.
Moinuddin Mohammed Rahgir, chief financial officer (CFO) of bKash, told the news reporter, “During the early stages, customer-centric fintech companies like bKash with a sustainable business model needed patient capital and a growth mindset. It was a prerequisite to invest in the expansion of technological capabilities, infrastructure, digital literacy, and awareness.”
“bKash remains a textbook example of a company pursuing growth, including the expansion of its service platform, customer acquisition, and maintaining its agent network. Now, steady returns on those investments are bringing revenue growth,” he added.
In the January-March quarter of 2024, the company’s operating profit also jumped over 500% to reach Tk76.22 crore. Besides, its revenue grew by 24%, reaching Tk1,214 crore, compared to the equivalent period of last year.
Meanwhile, the robust growth in profit helped bKash – also a subsidiary of BRAC Bank – offset the accumulated loss after four years, posting Tk15.78 crore as retained earnings in the March quarter.
The financial service provider had been profitable until 2018 since its inception in 2011, but it suffered significant losses between 2019 and 2021.
BRAC Bank holds 51% shares of bKash, while Money in Motion LLC of the US owns 16.45%, Alipay Singapore E-Commerce 14.87%, International Finance Corporation 10.36%, and SVF II BEAM (DE) LLC 7.32% shares.
Bangladesh has taken a significant step towards enhancing its digital financial services as NAGAD Limited and Huawei Technologies signed a landmark agreement. The deal aims to revolutionize the country’s digital transaction experience by integrating world-class smart transaction technologies through NAGAD’s digital banking and mobile financial services.
The agreement, signed on Tuesday (July 9) at Beijing’s Shangri-La Hotel in the presence of Prime Minister Sheikh Hasina, marks a pivotal moment for Bangladesh’s digital economy. It underscores the commitment to bolstering digital banking capabilities, ensuring that customers of NAGAD can enjoy seamless international transactions anytime, anywhere.
Representing NAGAD, the agreement was endorsed by its founder and CEO, Tanvir A. Mishuk. Among the dignitaries present were Finance Minister Abul Hassan Mahmood Ali, Foreign Minister Dr. A.K. Abdul Momen, Adviser to the Prime Minister on Industry and Investment Affairs Salman F Rahman, State Minister for Posts, Telecommunications, and Information Technology Junaid Ahmed Palak, and NAGAD’s Chairman Farid Khan.
Huawei’s South Asia Region President and CEO Pan Yunfei signed the agreement on behalf of Huawei. Several senior officials from the Chinese government were also in attendance, highlighting China’s support for Bangladesh’s economic growth and digital inclusion efforts.
Chairman of NAGAD Digital Bank, Farid Khan, commented on the significance of the agreement, stating that over the past five years, Bangladesh has seen a profound transformation in its financial landscape. Now, with global collaboration on the horizon, NAGAD and Huawei aim to propel Bangladesh towards a smarter future. NAGAD’s digital banking initiative will play a pivotal role in achieving a Smart Bangladesh, fostering significant advancements in the country’s economic framework.
The Bangladesh Telecommunication Regulatory Commission (BTRC) has issued a show cause notice to Grameenphone due to an excessive number of call drops. The telecom operator could face a fine of up to Tk 300 crore if it fails to provide a satisfactory explanation.
The notice was issued on July 1.
Junaid Ahmed Palak, the State Minister for Posts, Telecommunications and Information Technology, informed journalists of this development after inaugurating the GPT platform ‘G-Brain’ at the ICT Tower in Agargaon, Dhaka, on Wednesday afternoon.
“We have issued an initial show cause notice to Grameenphone. Further analysis is underway. If they can provide a valid explanation, they may be pardoned as they were last time. However, if they fail to justify their actions properly, BTRC can impose fines ranging from Tk 100 crore to Tk 300 crore,” stated Palak.
He added, “We had asked for explanations from four mobile network operators (MNOs) regarding our test drive on July 30.”
The BTRC conducts ‘Quality of Service (QoS) Drive Tests’ to verify the service quality of mobile phone operators, checking voice calls, data, and network coverage.
Engineer Md. Mahiuddin Ahmed, Chairman of BTRC, mentioned that voice and data services on Grameenphone’s network did not meet the expected standards in the drive test. The BTRC is investigating the reasons behind this shortfall.
“If any operator fails to maintain the expected service quality, BTRC will take action. Customers should not suffer any inconvenience,” emphasized the BTRC Chairman.
According to the Quality of Service (QoS) guidelines, there is a provision for up to 2% call drops for voice calls. For call setups, BTRC has set a specific time limit of seven seconds. Additionally, a minimum download speed of 7 Mbps is required for 4G technology.
Inspira Hosts Policy Dialogue on MSME Digital Security and Data Protection
Dhaka, June 9, 2024 – Inspira, in collaboration with USAID, DAI, and DCCP, successfully organized a Policy Dialogue addressing the digital security and data protection challenges faced by MSMEs. The event gathered industry leaders and government officials to deliberate on these critical issues.
Md Ziaul Haque Bhuiyan, Chief of Staff of ShopUp and former President of JCI Bangladesh, shared valuable insights during the dialogue. The event was graced by Md Shamsul Arefin, Secretary of the ICT Division, as the Chief Guest. Other notable attendees included Salahuddin Mahmud from the SME Foundation, Khalilur Rahman, Director General of BTRC, Abu Saed Kamruzzaman, Director General of NCSA, and Samira Zuberi Himika, Chairperson of Inspira.
Key Points Discussed:
Restricting Betting Services:
- Issue: Online betting services are causing financial losses for many individuals.
- Discussion: Implementing stricter regulations to limit access and protect users from financial harm.
Regulation of Grey Channel Devices:
- Issue: Unauthorized smartphones and laptops with unmonitored apps are entering the market.
- Discussion: Enhancing regulatory oversight to ensure visibility and security of imported electronic devices.
Data Storage Concerns with CCTV Cameras and VTS:
- Issue: Sensitive data from CCTV cameras and Vehicle Tracking Systems is being stored overseas.
- Discussion: Expanding BTRC’s regulatory scope to include these devices and ensure data security.
Digital Security Education:
- Issue: There is a lack of awareness and education on digital security and data protection.
- Discussion: Integrating these topics into the national education curriculum and enhancing public awareness through eCAB, BASIS, and media campaigns.
Government Officials Using Insecure Email:
- Issue: The use of Gmail by government officials poses security risks.
- Discussion: Promoting the use of secure, government-approved email services for official communication.
OTP Awareness Challenges:
- Issue: Misunderstandings about OTP security are affecting delivery services.
- Discussion: Educating the public on proper OTP usage to enhance security and service efficiency.
Policy on Digital Page Ownership:
- Issue: There is a lack of clear policies on digital page ownership and management.
- Discussion: Developing policies to protect content creators and regulate digital page ownership.
The Policy Dialogue underscored the necessity for comprehensive strategies and collaborative efforts to bolster digital security and data protection for MSMEs in Bangladesh. By addressing these issues, the event aimed to create a safer and more secure digital environment for businesses and individuals alike.
