#Title

MFS a revolution
FROM PAGE B1
amount would be higher if information of Nagad is included in the Bangladesh Bank data. Launched in 2019, the MFS arm of Bangladesh Post Office is yet to get a full-fledged licence.
The types of service available has grown gradually. Initially, people opted for only sending and withdrawing money.
Currently, customers can top-up mobiles, make payments at physical shops and e-commerce platforms, pay utility bills, make payments for various fees including schools and colleges, transfer money among banks, send remittance, receive education stipends and many more.
In another major move, bKash joined hands with City Bank to roll out the country’s first digital nano loan, highlighting what people could expect from the burgeoning MFS sector in the coming days.
The collateral-free and instant “Digital Nano Loan” helped Bangladesh enter a new era of digital lending.
Safety net disbursement through the MFS providers was also initiated in May 2020 during the initial wave of the pandemic.
The government disbursed old-age allowance, widow allowance, student stipends, allowances for people with special needs, the underprivileged, and students from financially insolvent families, farmers’ allowance and in other areas using the MFS.
The MFS providers distributed about Tk 14,000 crore in 2021 on behalf of the government.
“People across the country have tremendously benefited from the mobile financial services during the pandemic,” said Atiur Rahman, former governor of Bangladesh Bank, at an event yesterday.
“We have witnessed, during the pandemic, that from the megacities to the remote char areas, low-income people have benefitted from the MFS. So, we may say that mobile financial services have passed the corona exam,” he said.
“When we initiated MFS in Bangladesh a decade ago, our focus was to ensure low-cost and accessible digital financial services to the low-income people living in the remote areas,” said Rahman.
Unayan Shamannay and Knowledge Alliance organised the event on the former’s premises to share the findings of a study on the 10 years of MFS in Bangladesh.
Low-income customers from char areas have opened MFS accounts in great numbers amidst the pandemic to avail government cash transfers, the study found. This was mainly due to the government decision to send cash transfers via MFS.
Consequently, confidence of the char customers has increased to a significant extent, it said, adding that people in remote area were increasingly paying their electricity bills and receiving remittances through MFS.
Khondoker Sakhawat Ali, founder at Knowledge Alliance, said half of the MFS accounts remain dormant as many of those were opened primarily to receive cash transfers from the government amidst the pandemic.
He said operators have to come up with ways to encourage these customers to use those accounts for other purposes.
Economist Ahsan H Mansur said along with sending and receiving money, other uses of MFS need to be increased.
“It is very much possible to advance towards a ‘cashless society’ though effective utilisation of the MFS,” he added.
At the end of last year, Rocket had 2.66 crore customers and top operator bKash over 5.80 crore. Nagad said it had 5.78 crore by the end of 2021.
Last year two MFS providers, Trust Axiata Pay (tap) and Upay, launched operations which further gave a boost to the sector.

BGMEA moves
FROM PAGE B1
AAFA’s comprehensive work ensures the continued success and growth of the global apparel and footwear industry, its suppliers, and customers.
“With this in mind, agreements with strategic partners around the world help reduce trade barriers, encourage sharing of Environment and Social Governance (ESG) best practices, and promote innovation on behalf of our members,” said AAFA President Lamar.
“Today’s collaboration marks increased capacity building to support joint practices and training to advance supply chain sustainability, expand trade opportunities, and improve the buyer-supplier partnership,” he added.
As per the understanding, the AAFA will support Bangladesh in promoting its trade interests in the US market, especially advocating the withdrawal of GSP suspension to recognise the progress made in the local industry in areas of workplace safety, worker well-being and environmental sustainability.
The AAFA, a trusted public policy and political voice of the apparel and footwear industry, will also work closely with the BGMEA to advocate improved trade preferences and programmes between the US and Bangladesh.
The AAFA, which represents more than 1,000 world famous brands, retailers, and manufacturers, along with the BGMEA will try to improve the partnership between buyers and suppliers through responsible purchasing practices.
They will also work collaboratively on capacity building to cut time and cost to make the supply chain more sustainable via developing joint programmes to train workers and mid to top management, and a special collaboration with the BGMEA Center of Innovation.
The two associations will inspire buyer-supplier collaboration to upscale product development and innovation capability to explore untapped segments of the export market via joint research, coaching programmes, sharing of knowledge and information like fashion trend analysis and forecasting, matchmaking events and media campaigns.
They will also work on creating joint scoping missions to explore bilateral investment opportunities, particularly in backward linkage textile industries in Bangladesh, especially in the non-cotton segment.
The AAFA and BGMEA will collaborate to deepen discussions towards a unified code of conduct, or unified approach, for social and environmental audits in manufacturing facilities via setting up of a joint committee with clear terms of engagement.
Earlier, the US government suspended the GSP status for Bangladesh on June 27, 2013, citing the bad working environment in the garment factories and poor labour rights.
However, with the recommendations of the American government, Bangladesh improved the workplace safety, amended labour laws and submitted progress reports to the United States Trade Representative for reinstating GSP status twice.
However, it has not been reinstated by the American government yet.