With over 40 million registered users, mobile banking has been revolutionary in increasing the financial participation of those who have long been excluded from conventional banking.
The rapid increase in the number of users of mobile financial services illustrates the efficiency with which technology can be used to reach people in remote and rural areas -- all through the initiative of the private sector.
Most Bangladeshis own a mobile phone now -- using this technology for banking is clearly the right way to go
Because of the high overhead costs of operating conventional banks, it is usually not feasible for traditional banks to accommodate the poor and underprivileged, who often it hard to maintain the minimum balance required to make maintaining an account worthwhile for a private bank.
The obvious solution to this problem, as the numbers show, is mobile banking -- mobile banking does not require a physical location or large savings.
It is feasible for MFS to cater to people who would not be considered attractive customers by conventional banks from a profit-making viewpoint.
For many years, financial inclusion has been used as an excuse to prop up loss-making and inefficient state-owned banks.
But paying for these SOBs hurts the economy, and is not the long-term solution when there is the alternative for using digital technology to enable cheap, fast transactions via mobile phones.
Right now, countries all around the world are adapting to mobile banking as an easy mode of banking. Bangladesh, which its vast mobile-banking user base, has the chance to be a pioneer in this area.
Most Bangladeshis own a mobile phone now -- using this technology for banking is clearly the right way to go.