MFS leader reinvests profits to expand financial inclusion

Bangladesh MFS market leader bKash is ploughing its net earnings back into technological infrastructure and algorithmic products, turning simple mobile transfers into data-driven  financial services.

Founded in 2011 as a joint venture between BRAC Bank PLC and US-based Money in Motion LLC, the platform has grown to serve over 84 million verified customers -- roughly a third of Bangladesh’s 250 million registered mobile financial service accounts, according to central bank data.

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Despite robust mobile network coverage, uneven smartphone adoption and spotty high-speed internet continue to impede a full transition to a digital economy. This gap is widened by low digital literacy and a pervasive informal market where cash remains the preferred medium to avoid taxes.

Addressing these barriers demands a coordinated effort combining public-private partnerships, targeted technology deployment, and sustained public awareness campaigns, industry insiders observe.

“By bringing essential financial services -- accessible through the simplest mobile phones -- to the doorsteps of everyday citizens, bKash has fundamentally reshaped the country’s digital transaction ecosystem,” said Shamsuddin Haider Dalim, head of corporate communications at bKash.

To expand digital usage, the platform has integrated over 200 features into its smartphone application while maintaining core access via basic feature phones. Tech integration has allowed over 1,200 readymade garment (RMG) factories to automate wage disbursements for nearly 10 lakh workers via its digital payroll system, while 2,800 billers now process utility payments through the network.

The strategy is generating strong financial returns. Post-tax profits more than doubled in 2025 to Tk 6.60 billion, up 109 percent year-on-year, propelled by higher user retention and product expansion.

Shareholders have opted against taking dividends, choosing instead to reinvest capital into tech expansion, the company said.

CASHLESS EXPANSION PUSH

To encourage customers’ shift, bKash focuses on giving users a ‘complete digital lifestyle.’ Currently, its users can access over 200 financial features and services through its app.

The MFS also offers scope for customers to add money from bank accounts or cash, keep savings and get loans from commercial banks and non-bank financial institutions (NBFIs) through the app.

By analysing transaction histories, bKash is increasingly using machine learning models to assess creditworthiness for individuals without formal credit histories.

Through a partnership with City Bank, 37 lakh users have accessed over Tk 10,000 crore in digital loans ranging from Tk 500 to Tk 50,000 as of May, with credit scoring determined entirely by automated behavioural algorithms.

A similar data-led approach is being rolled out to bridge credit access for small businesses. A pilot programme with BRAC Bank evaluates merchant transaction volumes via QR codes to extend instant, collateral-free microloans directly to vendor accounts.

bKash users can now open digital savings directly through the app with five commercial banks and an NBFI.

Infrastructure upgrades are also driving merchant acceptance. The company has deployed over 800,000 central-bank-standardised ‘Bangla QR’ codes across its network of nearly one million merchants -- the largest deployment by any single firm in Bangladesh.

OVERCOMING THE DIGITAL DIVIDE

It was observed that two primary customer groups remain underserved by the financial sector: those restricted by the digital divide and those lacking traditional credit histories.

For individuals without smartphones or reliable internet, bKash allows anyone with a basic feature phone to access core services.

The second group -- the people without formal credit history -- has traditionally been excluded from formal banking. To bring them into the formal net, bKash has pivoted to developing data-driven financial products.

Meanwhile, to keep customers’ money secure, bKash proactively collaborates with law enforcement agencies to combat illegal transactions like hundi and cyber threats.

Over the past 15 years, the MFS contributed to a behavioural shift towards a cashless economy, Shamsuddin said.

“However, the journey is not over. The primary gap remaining is achieving a sustainable behavioural shift from a cash-reliant mindset to a cashless lifestyle, ensuring every citizen, regardless of digital literacy or geographic location, confidently navigates cashless tools,” he added.