Anindita Das | Session: 2017-18 | Department of Finance
bKash's achievement of unicorn status signifies its remarkable growth and impact in the financial technology sector within Bangladesh. Its valuation surpassing the billion-dollar mark is indicative of the substantial market demand for its services and its ability to attract significant investments. Being the first unicorn in Bangladesh not only highlights bKash's success but also reflects the potential of the country's developing digital economy and its capacity to foster innovative financial solutions.
This achievement has positioned bKash as a trailblazer, setting an example for other startups and companies in the region to aim for similar heights of growth and success. In the bustling landscape of Bangladesh, a nation rich in culture and heritage, a significant portion of the population had long struggled to access basic financial services. Managing finances, securing their future, and safeguarding against financial uncertainties were formidable challenges. Traditional banks found it difficult to cater to the financial needs of individuals with modest income levels. Recognizing this gap and fueled by a strong drive towards digitization, mobile financial services (MFS) emerged as a transformative solution, unlocking access to financial services for all.
The Birth of bKash
At the heart of this transformation were two visionary brothers, Kamal Quadir and Iqbal Quadir. The Quadir brothers had already established their footprint in Bangladesh's telecom and e-commerce sectors. Iqbal Quadir's pioneering role in the mobile telecom industry and Kamal Quadir's creation of Cellbazaar, the first mobile phone-based e-commerce platform, showcased their insight into the potential of mobile technology. It was against this backdrop that the concept of bKash was conceived.
Harnessing the Power of Mobile Phones
Bangladesh boasted a remarkably high mobile phone penetration rate, with over 185.13 million users across the nation. This penetration offered a unique opportunity to leverage mobile technology for delivering financial services to those who had been excluded from the traditional banking paradigm. Thus, bKash was founded with a core premise: to utilize mobile phones as instruments for seamless money transfers, bill payments, and accessing an array of financial services.
Kamal Quadir and Iqbal Quadir came up with the concept for bKash. Historically, the Qudir brothers played an important role in Bangladesh's telecom and e-commerce industries. As a pioneer in the mobile telecom industry in Bangladesh, Iqbal Quadir has long advocated the transformative potential of mobile phones. Kamal Quadir, on the other hand, established Cellbazaar, the first mobile phone-based e-commerce platform in Bangladesh, which he subsequently sold to Grameenphone. The Quadir brothers' insight into the potential of mobile phones made them ideal protagonists for an enterprise like bKash.
Evolution of bKash Over the Years
A retrospective journey through the evolution of bKash reveals a remarkable saga of growth and empowerment.
1. Inception (2011-2012):
bKash made its debut on the Robi Networks in 2011, simplifying fund transfers via mobile phones. Over 2 million users adopted bKash by 2012. The partnership with BRAC Bank introduced ATM cash-out services, providing users with flexible options to access their funds.
2. Expansion (2013-2014):
The year 2013 witnessed a significant milestone with the establishment of a nationwide network of 50,000 agent locations. These points served as hubs for both deposit and withdrawal transactions, extending bKash's reach to even the most remote regions. This period also marked bKash's entry into remittances, facilitating cost-effective international money transfers. The International Finance Corporation (IFC) invested in bKash, strengthening its financial position.
3. Scaling Heights (2015-2016):
In 2015, bKash achieved a significant milestone by reaching a user base of 20 million, a testament to its growing influence. This accomplishment was duly recognized as bKash received the prestigious Millionth Award, solidifying its position as a trailblazer in the mobile financial sector.
The year 2016 marked a period of remarkable achievements for bKash, showcasing the company's innovative prowess and industry leadership. Firstly, bKash garnered global recognition by being ranked as the foremost provider of mobile money services, a remarkable feat that underscored its impact on a worldwide scale. This achievement not only highlighted bKash's pioneering efforts but also its commitment to shaping the future of financial transactions. In the same year, bKash introduced an instrumental service: the ability for Bangladeshis living abroad to seamlessly send money to their loved ones back home through their bKash accounts. This innovative remittance service addressed a crucial need for the Bangladeshi diaspora, offering them a convenient and cost-effective solution for cross-border money transfers. The introduction of this service not only eased the financial burdens of families but also strengthened bKash's position as a facilitator of accessible and efficient financial services.
Since its inception, bKash's remittance service has yielded substantial positive effects. It has revolutionized the way Bangladeshis receive money from abroad, providing a secure channel directly into their mobile wallets. The efficiency of this process has significantly reduced both the time and expenses typically associated with international money transfers. Consequently, this advancement has played a pivotal role in fostering financial inclusion across Bangladesh, contributing to the expansion of the nation's digital economy.
In Fortune magazine's 2017 'Change the World' roster, bKash secured the 23rd position for its positive impact through operational practices. The list spotlights companies that have brought about advantageous societal changes. Notably, bKash achieved a significant milestone by successfully increasing its customer base to more than 30 million, marking a noteworthy achievement.
4. Pinnacle of Success (2018-2020):
bKash, a prominent mobile financial service provider in Bangladesh, garnered several prestigious awards in recognition of its excellence and customer loyalty. In 2018, it was bestowed with the Best Brand Award for Mobile Financial Service, acknowledging its reputation as a trustworthy and widely recognized mobile money service. This recognition coincided with a strategic partnership with Ant Financial, affiliated with Alibaba Group.
In 2019, bKash further solidified its reputation by winning the Most Loved Brands Award for Mobile Financial Service. This accolade was reinforced by customers' enthusiastic support, evident in their votes for bKash to receive the American Express Brand Loyalty Award. The introduction of the bKash NEXT app showcased the company's commitment to enhancing its offerings and customer experience.
Continuing its trajectory of success, bKash secured the Best Brand award in 2020 for its unwavering reliability and strong market presence. Notably, bKash also attained the status of being the most popular mobile money service in Bangladesh during the same year. These achievements reflect bKash's exceptional dedication to innovation, customer service, and market leadership.
5. Continued Impact (2021 and beyond):
In 2021, bKash, a leading mobile financial services provider, achieved recognition from prominent research firm Nielsen as the best place to work in Bangladesh. In November 2021, bKash secured funding from SoftBank Vision Fund 2, disclosing a valuation of $2 billion. Notably, it stands out as the sole privately owned company in Bangladesh to surpass a valuation of $ 1 billion.
Empowerment and Challenges in Digital Payments
With over a decade of operation, bKash manages a remarkable daily average of 13 million digital transactions. The company's unique approach involves a widespread network of 330,000 agents acting as "human ATMs," facilitating the conversion between physical and digital currency. This innovative model significantly contributes to enhancing accessibility to formal financial services. bKash offers its services through a network of 500,000 merchants, providing an alternative to traditional currency.
According to Quadir, the company's efforts have led to substantial empowerment, particularly among women, who constitute 46% of their customer base. "People are empowered, especially women, who make up 46% of our customers" stated Quadir. Bangladesh has made strides in digital payments, mainly due to mobile banking services like bKash. However, challenges such as limited tech familiarity, costly internet, and a knowledge gap hinder wider adoption. Despite this, the government and stakeholders are working to overcome these issues and support digital payment growth.
