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SUMMARY REPORT
Cash Working Group Workshop With Mobile Money Transfer Financial Service Providers
January 2015
- Prepared by Eun Jung Yi, Technical Coordinator of Bangladesh CWG
TABLE OF CONTENTS
Glossary of acronyms 2
Background to the use of CTPs and MMT in emergencies in Bangladesh 3
Summary of discussion and agreed actions in the workshop 4
bKash 7
DBBL 10
IFIC 13
Next steps 17
Appendices 18
2
Glossary of acronyms
Cash agent Cash for Work CTP
An employee of financial service provider, who redeems mobile money for cash Payment provided as a wage for work, usually in public or community work programmes. The provision of money to beneficiaries (individuals or households). This may be either as emergency relief intended to meet their basic needs for food and non-food items or services, or to buy assets essential for the recovery of livelihoods.
KY C Know Your Customer. A legal customer due diligence process which requires the provision of identification information on the senders and receivers of cash transfers.
Mobile money Digital currency which is stored in an electronic wallet on a mobile phone
Mobile wallet An electronic wallet accessible on a mobile subscribed to a mobile money service
MNO Mobile network operator. A service provider that offers mobile network, coverage and payment transactions.
SIM Subscriber identification module. An integral circuit that securely stores data to identify and authenticate subscribers on mobile telephony devices. The circuit is embedded on a small card, commonly called a SIM card.
Sources: CaLP CTP Glossary (2011) and CaLP E-Transfers in Emergencies: Implementation support guideline
3
Background to the use of Cash Transfer Programmings and Mobile
Money Transfer for emergency response in Bangladesh
Bangladesh is a front-runner when it comes to adopting innovative assistance. The humanitarian
sector is not an exception. The CTPs are becoming more acceptable to use across different sectors
from food security to shelter and WASH. The Bangladesh humanitarian community embraced the
new evolution toward complete cash transfers from in-kind during cyclone Aila response in 2011 and
adopted various CTP modalities from direct to mobile money transfer since tropical storm Mahasen
in 2013.1 As of January 2015 more than 60,000 flood-affected victims received cash support to meet
their basic needs and livelihood support from 13 humanitarian agencies across in the northwest.2
Among them 19,000 families received the cash assistance through mobile money transfer. They
were given a SIM card and PIN number to withdraw their grant from established or roaming cash
agents with the option to conduct other financial transactions such as cash deposit and payments.
Although the emergency CTP was short in nature, the benefits would last longer.
So far, the real success of MMT has been a mixed picture. The Cash Working Group has witnessed
unmet expectations from humanitarian agencies and challenge found in fields. Despite some
recognizable benefits such as flexibility, speed, and dignity to beneficiaries, various problems
occurred. To name a few, the long set-up time, wrongdoings of cash agent, complex agreement
process and slow beneficiary registration process and so on which are against the rationale for doing
MMT rather than direct cash distribution.
It is obvious that the Bangladesh MMT market is promising with much room to make positive change
and develop tailored service for humanitarian cause. However, negotiating with private sector is not
always smooth without much progress. That is why the Cash Working Group collected opinions and
calls for a workshop with MMT financial service providers to share with them the identified problem
and to instruct them to meet the critical demands. This workshop shall be an opportunity for
humanitarian agencies to learn the perspectives of private financial service providers and find
common success factors for better CTPs.
1 The complete set of cash-only assistance took place in 2011 by NARRI consortium. 2012 NW flood was the
first time that MMT was used for emergency response in Bangladesh (Oxfam). 2 For complete display of CTP response, please check
https://docs.google.com/spreadsheets/d/118g8vVi2mamFLAdDM7HNgc6bGyvb0Am6eCnguh523lc/edit#gid=1716781090
4
Summary of workshop
On January 26th, 2015, the Cash Working Group hosted a full-day workshop with mobile money
transfer financial service providers at Concern World Wide office in Dhaka. The workshop was part
of CWG’s 2015 Plan of Actions under Collaborate and coordinate with service providers to design
better CTPs and to negotiate better terms and conditions individually or as consortium.
The purpose of the workshop was to bring together humanitarian agencies and donors to 1) clarify
the financial service range and geographic reach of existing providers’ infrastructure and capability,
2) find out how to gain real benefits from MMT at emergency and how to reduce loss, and 3) plant
seed for longer-term partnership with private sector. The 29 workshop participants (Appendix 1)
represented over 13 organizations, including INGO, UN and donor.
The agenda (Appendix 2) began with an overview by CWG Technical Coordinator of the context of
MMT in humanitarian emergency in Bangladesh; benefits and drawbacks of using MMT from latest
operation, its set-up process, and CWG’s perspectives for minimum level of service from MMT
financial service providers. Participants then shared their ideas on what kinds of support they expect
from service providers to improve their emergency operations; procurement process of SIM and
relations with telecoms, interest rate for savings, cash agent control issues, data protection, and
contingency plan.
MMT set-up processes in Bangladesh – Humanitarian agency perspective
Assess the commercial landscape of services and
providers
Negotiate and sign contract
with the chosen service provider
Ensure compliance of
financial service with internal and
donor requirements
Open a bulk account at the
bank of the service provider
Order SIMs/mobiles
Register beneficiaries with
associated account
Train beneficiaries on how to use the MMT service
Populate beneficiary data
and make a transfer
5
Collected expectation on minimum level of service required for MMT financial service providers
• Acceptable transaction limits
• Sufficient presence of cash collection/transaction point
• Acceptable maximum travel distance to cash collection point
• Adequate levels of liquidity
• Technical support
• Willingness to sign CWG member agency’s code of conduct including data protection
• Willingness to train their agents for humanitarian service
• Willingness to expand their service to CSR
The workshop consisted of individual sessions with bKash, DBBL, and IFIC on their service package,
work flow and conditions and discussions to meet CWG’s demands and service provider’s capacity
and willingness. The participants were given a profile of each company’s deal to have a good sense
of the product range. Each session ended with a set of actions agreed by service providers to take.
6
Moving forward
This below is the summary of agreed actions for service providers to take.
Key actions bKash DBBL IFIC
Full processes to undertake the transfer to beneficiary with humanitarian agency
-
Realistic timeline throughout the set-up and disbursement process
-
Breakdown of tariff and cost occurring throughout the processes
Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to share with CWG agencies
Concepts or ideas on tailored service package to CWG agencies
done
Contingency plan or alternative option in operation
Ideas or plans to develop one-stop-service with mobile network operators for CWG agencies in emergency work
Challenges from working with humanitarian agencies
Revision of proposal to CWG
Each company’s presentations are attached as separate document to this report. You will find the
contents are different from the workshop as some part of presentations were deleted or modified
according to the desire of the companies to keep their essential information to themselves.
The CWG will closely work with the companies to take the agreed actions within two months.
7
Presentation and Discussion with MMT providers
1. bKash
ATM Mahbub Alam (Manager, Enterprise&Solutions) presented how bKash collection and
disbursement process, where their agents cover, and what their transaction charges and speed.
According to them, they have 85% share in MMT market with 135,000 agent points. (Attachment 1)
The 4-day set-up time was questioned by workshop participants whether it meant entire process or
only registration. As a response, bkash agreed to provide a full cycle of set-up and disbursement
process with minimum timeline required for each step during emergency response with CWG.
Awareness-raising effort was argued to be very weak in bkash operation. Participants asked for the
provision of training to their cash agents and beneficiary/client. Technical Coordinator agreed to
assist bkash to develop training materials for such use.
The other hot topic was the workload for CWG to conduct beneficiary registration both with MNOs
and finance providers. Participants asked whether they can synchronize the registration with
telecoms and even make a bolder step to offer one-stop-shop for humanitarian agencies. Bkash
agreed to explore the idea.
Other issues discussed are the lack of contingency planning, the difficulty to handle the beneficiary
ID problem, and the higher charge for cash management.
Below is the current capacity of bKash for emergency operation.
Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE bKASH
Services for transferring cash to beneficiaries Answer
Can the delivery system be used for savings or other functions? Yes. They can used for Savings.
Is the cash delivery system and / or database computerized? yes its computerized.
What is the capacity to deal with large number of beneficiaries without disruption or long queues?
We have 140 K agent all over the country so beneficiary can do the cash out from them. We also deploy the extra virtual agent in the project area.
Which organizations have you previously worked with for disaster response?
Oxfam,ACDI-VOCA, English-In-Action, Concern worldwide, Plan Bangladesh, Concern Universals,etc.
Account condition
8
What are dentity documents required by beneficiary? Fill up KYC,NID and photo.
How the cash transfer processes
Please outline of the process. Please find in the attach file.
Lead time required for service provision
How long does it take to register beneficiaries, set up accounts, and etc?
If we got all the documents and fill up KYC it will take 3 working days.
Security precautions
What measures would be provided to prevent theft or ensure money is not stolen or fraudulently accessed? .
Specify any security precautions or insurance provided
Do you sign aid agency's code of conduct for data protection? No
Corporate Social Responsibility policy and activities
Do you have special policy for CSR activities? No
Geographical coverage and accessibility What is the geographical coverage of your
outlets/networks in the country? Is possible, please provide union-level coverage breakdown. 140 k,Land Area :86% , Population 96%
Can the existing service be extended to provide a service in locations not served by your current infrastructure / network? If yes, how?
Yes, We deploy virtual agent to the extented area.
What time scale would be required for providing extended coverage?
What additional cost would be involved in providing increased coverage? No extra cost need for the client.
What back-up systems are available to address outages? N/A
What difficulties would you anticipate in using this system to deliver cash to people living in remote rural area?
Insufficient agent. Virtual agent can be managed for there.
Account condition
Is there any minimum balance to keep? Zero
Is there cost to open and shut down account? No
Would beneficiaries have to withdraw all the cash in one transaction or can they make multiple smaller withdrawals?
They can make multiple smaller withdrwals.
Set up charges and fees Registration cost per beneficiary Free
Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider? N/A
Are there any other administrative and overhead chages? No
Are there cost to activate PIN? No
Transaction charges
Cash deposit to all beneficiary account by humanitarian Zero
9
agency
Cash withdrawal by beneficiary 1.85%
Cash deposit by beneficiary Free
in store purchase Free
money transfer 5 BTD
bill payment Free
balance enquiry Free
other recurring or transaction charges No.
As outcomes from the workshop, bKash agreed to perform below actions. The timeline will be given
shortly in consultation with two other service providers.
- Full processes to undertake the transfer to beneficiary with humanitarian agency
- Realistic timeline throughout the set-up and disbursement process
- Breakdown of tariff and cost occurring throughout the processes
- Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to
share with CWG agencies
- Concepts or ideas on tailored service package to CWG agencies
- Contingency plan or alternative option in operation
- Ideas or plans to develop one-stop-service with mobile network operators for CWG
agencies in emergency work
10
2. DBBL
Sahed Sufian Aahmud (Senior Officer, Relationship Manager) gave a presentation on DBBL’s
strengths, coverage, linkage with core bank, cash out process and costs. For its presentation file,
please see Attachment 2.
Workshop participants discussed the DBBL’s pre-arrangement with telecom networks, real-time
requirement for opening an account for a large number of beneficiaries and the lack of preparation
of Plan B in case of breakdown of network. They also asked DBBL to clarify the minimum balance
policy (Tk.20) and interest rate for savings. The other issues raised include the lack of sufficient
presence of cash agent in time and liquidity problem sometimes.
DBBL’s service and capacity is shown in below table.
Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE
DBBL
Services for transferring cash to beneficiaries Answer
Can the delivery system be used for savings or other functions?
YES
Is the cash delivery system and / or database computerized?
YES
What is the capacity to deal with large number of beneficiaries without disruption or long queues?
UNLIMITED
Which organizations have you previously worked with for disaster response?
Soliderity int., Soliderity, ACF, WFP, UNDP, MMS, RDRS, Islamic Relief, D-net MAMA Project, URC L.L.C, ESDO etc
Account condition
What are Identity documents required by beneficiary? 1 Copy Photograph And Any valid Photo ID, KYC
How the cash transfer processes
Please outline of the process. 1. Disburse the amount to all beneficiaries 2. Gathering the beneficiaries in a single venue. 3. Deploy virtual agent. 4. Disburse the required amount to the beneficiaries.
Lead time required for service provision
How long does it take to register beneficiaries, set up accounts, and etc?
5(Five) minutes
Security precautions
What measures would be provided to prevent theft or ensure money is not stolen or fraudulently accessed? .
Specify any security precautions or insurance provided ( Check Digit for minimize wrong input and PIN to prevent theft or ensure money is not stolen.)
Do you sign aid agency's code of conduct for data YES
11
protection?
Corporate Social Responsibility policy and activities
Do you have special policy for CSR activities? We participate in different CSR activities
Geographical coverage and accessibiliy Answer
What is the geographical coverage of your outlets/networks in the country? Is possible, please provide union-level coverage breakdown.
We have 1,08,000 DBBL agents which are covering throughout the nation. Beside this we are serving through 145 DBBL Branch, 1029 Bangladesh Krishi Bank Branch, 376 Rajshahi Krishi Unyan Bank Branch and 4500 UDSC agent.
Can the existing service be extended to provide a service in locations not served by your current infrastructure / network? If yes, how?
Yes, we will create agent to the local people for expanding our service properly.
What time scale would be required for providing extended coverage?
3(Three) Days
What additional cost would be involved in providing increased coverage?
NIL
What back-up systems are available to address outages? To overcome this situation we are initiation Agent Banking.
What difficulties would you anticipate in using this system to deliver cash to people living in remote rural area?
Provide DBBL agent with financial support.
Account condition
Is there any minimum balance to keep? Tk. 20/= only
Is there cost to open and shut down account? NO
Would beneficiaries have to withdraw all the cash in one transaction or can they make multiple smaller withdrawals?
Beneficiaries can withdrawal their amount in one transaction and also by multiple transactions.
Set up charges and fees Answer
Registration cost per beneficiary NIL
Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider?
* Hardware is not required for agent transaction. Because all beneficiaries are avail their cell phone. ** Our mobile banking office is well equipped with computer, scanner, UPS etc.
Are there any other administrative and overhead charges?
NO
Are there cost to activate PIN? NO
Transaction charges
Cash deposit to all beneficiary account by humanitarian agency
NIL
Cash withdrawal by beneficiary At ATM : Free, At Branch of DBBL, BKB and RAKUB: Tk 10 per TXN, At agent point : 0.9% of total withdrawal
Cash deposit by beneficiary At Branch of DBBL, BKB and RAKUB: Tk 10 per TXN, At agent point : 0.9% of total withdrawal
in store purchase NIL
money transfer Tk. 5/= per TXN
12
bill payment 1% or Tk 5/= which one is higher
balance enquiry NIL
other recurring or transaction charges Top Up: Free
For the follow-up to the workshop, DBBL officials promised to explore and seek for solution to
following actions with support from the CWG. The timeline will be given shortly in consultation with
two other service providers.
- Full processes to undertake the transfer to beneficiary with humanitarian agency
- Realistic timeline throughout the set-up and disbursement process
- Breakdown of tariff and cost occurring throughout the processes
- Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to
share with CWG agencies
- Concepts or ideas on tailored service package to CWG agencies
- Contingency plan or alternative option in operation
- Ideas or plans to develop one-stop-service with mobile network operators for CWG
agencies in emergency work
- Challenges from working with humanitarian agencies
13
3. IFIC Bank
Md. Ariful Mazid Ronju (Relationship Manager - Corporate Sales) presented IFIC’s strengths in
comparison with others in market, which are the availability of MMT menu in Bengli, provision of
printed KYC, reduced time for activation. IFIC currently has seven divisions covered with agent
number of 23,104 with plan to increase.
IFIC brought a proposal tailored to the CWG members: free account opening, no minimum balance,
0.7% of disbursement procession fee (negotiable) and 0.8% of cash out fee (non-negotiable), the
provision of printed KYC if given excel file, the completion of registration of 5,000 beneficiaries in
one day.
Its presentation to the CWG is attached to this report (Attachment 3). Below is the current offer
from IFIC to CWG members.
Humanitarian Disaster Response Purpose MOBILE MONEY TRANSFER PROVIDER PROFILE
IFIC
Services for transferring cash to beneficiaries Answer
Can the delivery system be used for savings or other functions?
Yes. Send Money, All Types of Payment (Merchant Payment, Tuition Fees, Utility Bill, etc), Saving Schemes, Mobile Top Up (Upcoming)
Is the cash delivery system and / or database computerized?
Yes
What is the capacity to deal with large number of beneficiaries without disruption or long queues?
Our Capacity is Flexible and can be customized according to requirements.
Which organizations have you previously worked with for disaster response?
Not Yet
Account condition
What are identity documents required by beneficiary? Photograph and photocopy of National ID Card/Passport/Driving Licence/Any Photo ID (with prior Written Communication to Corporate Sales of IFIC Mobile Banking only for INGO Beneficiaries)
How the cash transfer processes
14
Please outline of the process. 1. Agreement Signing with respective INGO & IFIC Mobile Banking 2. Account Opening for Beneficiaries 3. Respective INGO will deposit the disbursement fund with agreed service fees to any IFIC Bank Branch in a specific Account Number. 4. Respective INGO will email the scanned copy of the deposit slip and disbursement details in prescribed Excel Format. 5. IFIC Mobile Banking will complete the disbursement and confirm through email to the respective INGO. 6. Beneficiaries will withdraw the money from IFIC Agent or Any IFIC Bank Branch.
Lead time required for service provision
How long does it take to register beneficiaries, set up accounts, and etc?
IFIC Mobile Banking Part - 3 Days (1 Day for Bulk KYC Printing, 1 Day for KYC Checking and 1 Day for Bulk Activation). Process: Respective INGO will provide the beneficiary information in a prescribed Excel format which is similar to INGO Beneficiary Data Base through email. Then IFIC Mobile Banking will print the KYC forms and deliver it to respective INGO Office. Then the concern INGO will return the KYC with Beneficiary Signature and other required documents. After that IFIC Mobile Banking with check the KYC and activate the Accounts.
Security precautions
What measures would be provided to prevent theft or ensure money is not stolen or fraudulently accessed? .
1. PIN Code for all Transactions 2. Instant SMS Notification for every transaction 3. Instant Account Blocking in any emergency cases calling 16255 (24/7 Contact Center) 4. Security awareness creation for using Mobile Banking Account (through campaign, training, seminar) 5. However, in case of any incident, IFIC Mobile Banking will investigate the case with high priority and resolve it.
Do you sign aid agency's code of conduct for data protection?
Yes
Corporate Social Responsibility policy and activities
Do you have special policy for CSR activities? Yes
Geographical coverage and accessibility Answer
15
What is the geographical coverage of your outlets/networks in the country? Is possible, please provide union-level coverage breakdown.
District Covered-61, Upazilla & Thana Covered - 470
Can the existing service be extended to provide a service in locations not served by your current infrastructure / network? If yes, how?
Yes. We are still expanding our coverage. Therefore coverage can be ensured as per requirements.
What time scale would be required for providing extended coverage?
7-15 Days depending on the geographical location and business feasibility & Potentiality of IFIC Mobile Banking.
What additional cost would be involved in providing increased coverage?
None for the client. IFIC Mobile Banking will bear the cost.
What back-up systems are available to address outages? We will follow standard procedure to address outages.
What difficulties would you anticipate in using this system to deliver cash to people living in remote rural area?
1. Geographical Barriers (Poor transportation) 2. Liquidity Management for Ultra Remote Areas 3. Security in Ultra Remote Areas 4. Availability of Mobile Operators Network
Account condition
Is there any minimum balance to keep? No
Is there cost to open and shut down account? No
Would beneficiaries have to withdraw all the cash in one transaction or can they make multiple smaller withdrawals?
No. They can make multiple smaller withdrawals.
Set up charges and fees Answer
Registration cost per beneficiary Zero (0)
Provide details of costs of providing any hardware (e.g. point-of-sale devices, card readers, etc) Are these costs met by the service provider?
All these cost will be borne by the Service Provider
Are there any other administrative and overhead charges?
No
Are there cost to activate PIN? No
Transaction charges
Cash deposit to all beneficiary account by humanitarian agency
0.70% of the Total Amount Disbursed
Cash withdrawal by beneficiary 0.80% of the Total Amount Cash Out
Cash deposit by beneficiary 0.80% of the Total Amount Cash In
in store purchase Free
money transfer Tk. 3 Per Transfer
bill payment Free
balance enquiry Free
other recurring or transaction charges None
16
As outcome of the workshop, IFIC agreed to act on following issues.
- Breakdown of tariff and cost occurring throughout the processes
- Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to
share with CWG agencies
- Contingency plan or alternative option in operation
- Ideas or plans to develop one-stop-service with mobile network operators for CWG
agencies in emergency work
IFIC will revise the package and come up with a better one and present it to the CWG in due course.
17
Next Steps
This below is the summary of agreed actions for service providers to take.
The CWG will closely work with the companies to take the agreed actions within two months.
Key actions bKash DBBL IFIC
Full processes to undertake the transfer to beneficiary with humanitarian agency
-
Realistic timeline throughout the set-up and disbursement process
-
Breakdown of tariff and cost occurring throughout the processes
Training plans toward 1)beneficiary, 2)cash agent also virtual agent, if any, 3) materials to share with CWG agencies
Concepts or ideas on tailored service package to CWG agencies
done
Contingency plan or alternative option in operation
Ideas or plans to develop one-stop-service with mobile network operators for CWG agencies in emergency work
Challenges from working with humanitarian agencies
Revision of proposal to CWG
18
Appendix 1. Workshop participant list
Name
Organization
Jannat Noor OXFAM
Nasir Uddin Action Aid
Seongmin Lee WFP
Siddiqul Islam Khan WFP
Mizanur Rahman Concern Universal
Dulon Gomes Christian Aid
Ripon Bhowmik Terre des homes
Mohammad Shamsuzzaman Save the Children
Kaiser Khan FAO
Gerardus Wilbers FAO
Md. Mamud Hossain Rony FAO
Poggi Valeria FAO
David Doolan FAO
Md. Abdul Quayyum OXFAM
Al-Mamun Azad Concern World Wide
Alam Mahbud bKash
Alejandro Caballero Embassy of USA
Jason Guffey Embassy of USA
Md. Noor Alam Sohel bKash
Somel Reza Khan bKash
Fazlur Rahman Danish Church Aid
Bijoy Nath Concern World Wide
Golam M Billah Islamic Relief
Akbar Kabir DBBL
Sahed Sufian Aahmud DBBL
Asad-Uz Saman IFIC
Md. Ariful Mazid Ronju IFIC
Shaker IFIC
Eun Jung Yi OXFAM
19
Appendix 2. Workshop agenda
09:00-09:30 : Introduction of workshop - opportunities and limitations
09:30-11:00 : bKash
- Presentation of lessons learned and work flow in emergency
- Finding enabling factors for partnership
11:00-11:30 : Coffee break
11:15-13:00 : DBBL
- Presentation of lessons learned and work flow in emergency
- Finding enabling factors for partnership
13:00-14:00 : Lunch
14:00-15:00 : IFIC
- Presentation of lessons learned and work flow in emergency
- Finding enabling factors for partnership
15:00-16:00 : Outlining actions for furthering engagement
END
20
Cash Working group, Bangladesh Introduction: Cash transfer has been a practice and useful tool to support disaster affected people not only in Bangladesh but around the world as well in an emergency situation. Cash transfer also been used in slow onset chronic disaster, seasonal disaster. During emergency cash transfer and vouchers can be appropriate and effective tool to support affected populations through maintaining dignity and choices for beneficiaries and boosting local economy. Hence, Bangladesh Cash Working Group (CWG) has been formed to strengthen Cash Transfer Program (CTP) for disaster response in a better coordinated and harmonized way across clusters and sectors. In the long term, the CWG aims to scale up the government social safety net to include humanitarian CTPs. The principal objectives of the CWG are: to serve as multi-sector forum with a wide range of humanitarian actors,
to promote knowledge sharing practice through coordinated research and capacity building
to coordinate and provide lesson learnt (e.g. harmonization of CTP during northwest flood)
to develop evidence-based advocacy to influence decision makers for effective CTPs in emergency.
To consider gender and protection are important aspects in CWG’s work.
Working modality of CWG Bangladesh: The Cash Working Group (CWG) has been led by Oxfam as an anchoring secretariat of the CWG Bangladesh. A Technical Coordinator has been assigned by OXFAM to coordinate and oversee the forum since August 2014.
As a whole, membership into the CWG is open but not limited to humanitarian partners.
Particularly, Representative from national NGOs, international NGOs, Government (Department of Disaster Management, Bank), relevant private sectors (money transfer agency), multi sector-clusters, Red Cross and Red Crescent Societies, Donors, and the Humanitarian Affairs Advisor Primarily organizations with previous experience in cash and voucher based interventions and those are planning to work on such kind of interventions in future.
The structure of the CWG is first, a monthly meeting convened by the Technical Coordinator to review the CTPs in the country and to carry out the Plan of Actions. Second, the Technical Advisory Group consisting of four agencies has been formed to provide the strategic direction of the CWG. Third, during initial and early emergency response ad-hoc meetings are summoned to determine CTP intervention area and set rate and size.
Currently there are more than 30 organizations who are actively participating in the CWG. Please visit the Bangladesh CWG web site below. http://www.cashlearning.org/bangladesh-cwg/bangladesh-cash-working-group
Development Partner
Technology Partner
Network Partner
Regulator
Equity Partner
bKash Partners
Money in Motion
Mobile Payment + Mobile Finance + M-Commerce (Wages/Collection/Disbursement) (Loan Repayment, Insurance Premium)
bKash Services
It’s a BRAC Bank Company deals with Mobile Financial Services. Services includes:
Money transfer
Cash Out Mobile top up
Loan Repayments
Merchant Payments
Cash In ATM Withdrawal
Foreign Remittance
Payment Disbursement
For Consumers
Payment collection
For Enterprises
bKash Portfolio
bKash Collection Process
- Individual goes to bKash agent, - fill the KYC & gives required documents;
bKash agent opens account
Lead time: 4 Days (Post activation process)
Individual make payment to the company Master Wallet
bKash settle the amount in the designated bank account after deducting the Settlement Charge (%)
Beneficiary Account Opening
Corporate Collection
bKash Disbursement Process
Company Deposits Money (Principal + Cash Out Fees+ Disbursement Fees) to a designated BRAC Bank Account
Company Sends a disbursement request in a template to bKash
BRAC Bank notify to bKash
bKash converts the amount into e-money and disburse to the instructed beneficiaries after deducting the disbursement fees(%)
Beneficiary receives a text & cash out from bKash agent
- Individual goes to bKash agent, - fill the KYC & gives required documents;
bKash agent opens account
Lead time: 4 Days (Post activation process)
Beneficiary Account Opening
Corporate Disburseme
nt
1. Wallet Opening or Registration
Goes to your nearby bKash agent Fills up the registration form Submits required documents
2. Deposit Money or Cash In
Pays cash to agent Receives e-money in your bKash wallet in
exchange
3. Ready to Fly
Now customer has a bKash wallet
• At Point of Sale, the customer can only acquire service or product with bKash Wallet. • Merchant will receive a SMS instantly confirming the payment.
4. Payment to Merchant
5. Money Settlement in the Designated Bank Account
• The amount will be transferred to any bank as instructed.
Acc
ou
nt
Op
enin
g C
ash
-In
Pay
men
t A Typical Payment Flow – MerchantPlus
Our Strengths…
Customer Service
Dedicated Account Manager
Agent Coverage Widest Coverage
with Quality Services
Best Network Partner
Best Technology 135 K+ Agent
85%+ Market Share
400 + Corporate Client
Benefits of our Solutions..
Electronic Payment in least cost
Highly Secured No hassle of Change
Fastest Mode of disbursement
Easy & Better Reconciliation
Minimize Cash Carrying Risk
Benefits of
Disbursement
Solution
24/7 Transaction
Anywhere in the Country
Electronic Payment in least cost
No hassle of Fake, & Torn Currency
No hassle of Change
Incremental Sell
24/7 Online Report
Direct Bank Settlement
Benefits of Collection Solution
Easy & Better Reconciliation
Remote Payment
Thank You!!
Banking for the Unbanked
What is Mobile Banking?
Mobile Banking is a Banking process without bank branch which provides financial services to unbanked communities efficiently and at affordable cost with the help of mobile telecommunication devices i.e. mobile phone.
Cash-In/Cash-Out
Salary Disburse
Introducing DBBL Mobile Banking
DBBL Mobile Banking started its journey on 31st March, 2011 targeting delivery of financial services at affordable costs to sections of disadvantaged and low income segments of the society
A Small Step for Mankind……….
Opportunities of Mobile Banking in Bangladesh
Banking Coverage
Inward Remittance
Low Income Group
Urban Centric Banking
Domestic Remittance
Banking Coverage
Source: BTRC, BB, BBS
Only 27% Bangladeshi have bank accounts but 65% have mobile phones
Financial Inclusion
Inward Remittance
Bangladesh is 6th largest remittance receiving country in the world.
Receive remittance directly in the account.
Increase savings tendency.
Closing unofficial & unsafe channels i.e. hundi, friends & families, etc.
Low Income Group
Low income group i.e. Readymade Garments that is a $20 billion dollar industry in Bangladesh. Employing about 3.5 million people and contributing significantly to social inclusion.
Source: IFC study
Urban Centric Banking
Branch Opening Strategy Previously: 4 (Urban) : 1 (Rural) (Note: Practiced for long time) Now: 1 (Urban) : 1 (Rural) (Note: Branch opening significantly reduced as so many branch has already been opened before)
Target Unbanked Community
Existence of Unbanked Community
Resu
lts
Domestic Remittance
Fund Transfer within country
Channel used so far Channel for Now
Courier, Friends & Family, Bank (TT,DD), etc.
Mobile Banking
Time Consuming Costly
AML Issue Unsafe
Concerns
Instant Access Cheaper
No AML Issue (Account to Account)
Safe (Account to Account)
Concerns
ATM Withdrawal
Real Card-less ATM Transactions
For the First Time in the World
Check Digit
DBBL Mobile Account Number (12 digit) = 11 digit Mobile Number + 1 Check Digit
Check Digit For?
To Eliminate Mistakes/Typing Error
Security Safe
Operator Independence
A person with any mobile number from any Mobile Operator of Bangladesh can avail DBBL mobile Banking services.
We Accept
Mobile Top-Up
Mobile Top-Up with DBBL Mobile Banking
For the First Time in Bangladesh
A/C Linkage with Core Bank
• A Mobile Banking Account Holder may transfer his fund from Core Bank Account to his Mobile Bank Account.
• He/She may also transfer his fund from Mobile Bank Account to his Core Bank Account.
What DBBL Mobile Banking Offers?
DBBL Mobile Banking
Free Customer Registration
Cash - In (Deposit)
Cash - Out (Withdrawal)
P2P ( Fund Transfer)
ATM Withdrawal
Airtime Top – Up
Foreign Remittance
Merchant Payment
A/C Linkage
Salary / Payment Disbursement
Client opening their DBBL mobile account with the help of DBBL MB Officer
Corporate Office accumulate each account no. correspondent to each staff in a single excel file (as per pre-formatted excel file shared by DBBL)
Corporate Office share monthly file (pre-formatted excel) containing disbursement details with DBBL each month
DBBL disburses staff’s salary according to the Corporate Office guidelines
Beneficiaries of Corporate Clients
Corporate Clients
Client will get a notification SMS about their salary payment in to their mobile account.
Corporate Office’s appointed personnel will notified through email after ending the salary disbursement process .
Corporate Office
Corporate House
Corporate Office have to open an Enterprise account with Core Banking in order to avail Salary Disbursement service. During disbursing, this enterprise account will be debited and individual salary account will be credited accordingly.
Client can withdraw cash from any DBBL ATM, DBBL branch , BKB, RAKUB or agent point.
Salary Disbursement Charge Free
Salary Disbursement Charge : Free
Cash Out / Withdrawal By ATM
Client Visits any DBBL ATM Booth
Press Mobile Banking button on the ATM
Enter your Mobile Account Number 01XXXXXXXXXX
Customer enter his/her DBBL mobile account number on ATM
Enter Amount
1000
Customer enter amount on ATM
Enter PIN
Customer enter PIN on ATM
Customer enters his/her PIN from his/her mobile
System debits customer’s account for the same amount and dispense money, customer also get a notification message to his/her mobile
“You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN” ****
DBBL system sends prompt menu or IVR call to the customer’s mobile
****
Cash-Out from ATM Free
Cash-Out from Branch Taka 10/- Flat
Cash-Out at Agent Point .9%
Process of ATM Withdrawal
In normal (idle state) condition following screens will pop up in ATM monitor and ATM is ready for financial transaction. For withdrawal cash press Mobile Banking Button.
After pressing Mobile Banking Button at ATM, the following screen will be appeared then type 12 digits mobile account number and if it is correct press Correct button otherwise press Incorrect button.
After that following screen will be appeared and customer will enter four digits PIN (Personal Identification Number):
Now customer has to enter amount and press correct button. (If any wrong amount is given, customer may press incorrect button for a fresh entry)
Now customer will get an USSD Push/IVR call to input his/her account PIN number. If the PIN is correct, customer will get the following screen
After completion of the transaction, following screen will appeared:
If customers want to do another transaction press ‘YES’ else press ‘NO’ to exit.
ATM Withdrawal Charge : FREE
Cash Out From DBBL Branch, BKB, RAKUB Branches
Customer going to branch for cash out (withdrawal) their salary
DBBL/BKB/RAKUB Official collect the account no. and generate a SMS to the Customer
You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”
DBBL system sends prompt menu or IVR call to the customer’s mobile
****
Customer enters his/her PIN from his/her mobile
System debits customer’s account for the same amount and branch official provide the same amount to the customer, customer also get a notification message to his/her mobile
Cash-in / Cash-out charge from Branch: Tk. 10 for any transaction
DBBL authorized Agent
Cash Out From Agent
Customer going to DBBL authorized agent for cash out (withdrawal) their deposit.
DBBL Agent collect the account no. of the Customer
DBBL Agent generate a SMS to the BGB staff Mobile for debiting the amount
You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”
DBBL system sends prompt menu or IVR call to the customer’s mobile
**** Customer enters his/her PIN from his/her mobile
System will debit Customer’s account for the same amount and DBBL Agent provide the same amount to the Staff.
He/ She will also get a notification message to his/her mobile
Cash-out Charge From Agent : 0.9% of total Deposit / Withdrawal amount
Example: (Taka 9/- Per 1,000/-)
Type Number Nationwide Additional details
DBBL Mobile Bank
Offices
Throughout the
country
868+ DBBL owned manpower
Support Customer registration
Support all types of Customer complain related to Mobile Banking
Union Information
Service Center (UISC)
2,500+ Covering almost all the unions
Rest are expected to be completed by march ‘2015
ATMs 2,600+ Including 350 fast track
24/7 Service
Agent Points 1,11,000+ • Throughout the country covering almost all the Unions.
Merchants 3,700+ Location wise, business wise Mostly grocery, confectionary, dispensary,
cosmetics, fast-food shops
Bangladesh Kirishi
Bank (BKB) 1029 Covering all districts except Rajshahi and Rangpur Div. (16 Dist)
Rajshahi Krishi
Unnayan Bank
(RAKUB)
376 Covering all districts of Rajshahi and Rangpur Division. (16 District)
Branches of DBBL 145 Covering most of the districts
Our Coverage
Service Name DBBL Mobile Banking Other Service Provider
Customer Registration with all Mobile Network
Operators Yes No
Customer access to Bank branches Yes No
ATM withdrawal charge Free Yes
Check Digit to minimize wrong payments Yes No
Payment Disbursement charge Free Yes
Local office support Yes No
Comparison between DBBL & Other Bank
Why DBBL Mobile Banking?
Communication Channel
Handset/ Mobile Operator Independent
Three factor authentication (Check Digit, PIN & Mobile number)
Transparency
Bank- lead
Know Your Customer (KYC)
Reliable and Secured
Success Story: Case_1 (WFP Beneficiaries)
WFP beneficiaries are at the training session on DBBL Mobile Banking
WFP beneficiaries are filling up KYCs before opening their DBBL Mobile Banking account with the help of DBBL officers
WFP beneficiaries are opening their DBBL Mobile Banking account with the help of DBBL officers
Success Story: Case_2 (Hulhulia)
Hulhulia (An Ideal Village), Singra, Natore 100% Literacy rate
100% Sanitation
No Police case after 1971
200 doctors, engineers among 350 families
Own Constitution
100% Penetration of DBBL Mobile Banking
Villagers of Hulhulia are at the training session on DBBL Mobile Banking
Villagers of Hulhulia are opening their DBBL Mobile Banking account with the help of DBBL officers
Success Story: Case_3 (Garments’ Worker)
Garments workers are at the training session on DBBL Mobile Banking
Garments workers are filling up KYCs before opening their DBBL Mobile Banking account with the help of DBBL officers
Awards Received So Far……
The ComputerWorld (USA) Laureate – 2012 For Economic
Development