Leading figures from regional financial institutions have lauded ‘Nagad’, the Bangladesh government’s mobile financial service operated through a public-private partnership (PPP) with the postal department. They stated that ‘Nagad’ can serve as a model for reintegrating people who are financially excluded.
Leaders of regional financial institutions expressed interest in accelerating economic inclusion in their respective countries following Nagad innovation during a webinar titled ‘Innovative Technologies for Financial Inclusion in Public-Private Partnerships.’
Tanvir A Mishuk, Managing Director and Co-Founder of ‘Nagad, stated during the that if the private sector has the necessary machinery and initiative, the government is willing to assist it in PPP mode despite various obstacles. Mishuk, a prominent figure in the country’s fintech industry also said that by 2022, he plans to launch a digital bank that will provide 360-degree financial services to the country’s citizens.
Participating in the programme, Syed Abdullah Al Mamun, CEO of Bangladesh Rating Agency said that he is witnessing the incredible growth of ‘Nagad’ and views the organisation as a benchmark in Bangladesh’s startup scene.
“I look forward to Nagad’s journey,” he stated adding that “they have developed innovations at the institutional level, which will make the process even faster in the future.”
Sharing his views, Sanjeev Shubh, an intern CEO at Nepal’s Electronic Payment Systems Limited, predicted that the traditional banking system would collapse soon. That may happen within the next decade. And digital startups will accelerate this process and establish a global leadership position.
Sanjib, an intern CEO at Electronic Payment Systems Limited in Nepal, added, “I am confident that the ‘Nagad’ innovation is enhancing the greatness of digital KVC and will serve as a game changer in the future.” This digital KYC can be implemented in my country as well; I believe that the linguistic complexity at the customer level can be overcome.’
Former Deputy Governor of Sri Lanka’s Central Bank M Nurul Alam, former Chief Complaints Officer of Banglalink, and CPA Kornatilak, a former senior official of the Central Bank of Sri Lanka, participated in the webinar. They all stated that with the success and learning of Nagad, a similar mobile banking system could be implemented in other countries.
On challenges, Mishuk said, “In the beginning, we encountered numerous roadblocks from our partners. Later on, they joined forces with us, and with the government’s sincere courage, we were able to overcome the obstacles. With the right solution and sufficient effort, the deadlock can be broken.”
He added: “For a long period of time, the postal department was viewed as a loss-making venture. Following that, we collaborate with the organisation on our plans. At first, there were some roadblocks. However, I am aware that changes can be made to the postal infrastructure.”
‘Nagad’, which began operations in 2019, has grown to become one of the country’s best mobile financial services (MFS). The fintech is already widely recognised as a successful business model. Today it is one of most downloaded fintech app in the Bangladesh.