Bringing MFS Providers Under a Platform Remains a Challenge in Bangladesh
Monday, October 5, 2015
The Bangladesh Bank move to integrate a total of seven business entities including four commercial banks into Mobile Financial Services platform poses challenge.
According to the MFS revised guidelines, mobile phone operators will now enjoy beneficial ownership.
Led by four commercial banks, each Mobile Financial Services platform will incorporate two non-bank entities, plus one mobile phone operator as share holders into its business.
The commercial banks will hold majority of beneficial ownership, with non-banks not exceeding 15% and Mobile Network Operators (MNO) 30% in their total equities.
The central bank made the revised guideline to provide the poor and unbanked population segments in rural areas with greater access to formal financial services at an affordable cost.
Most mobile phone operators, however, are opposed to the guidelines due to its forthcoming implementation complexity.