Real-time transfer and investment products to drive remittance market leadership: Experts

The landscape of remittance in Bangladesh is undergoing a seismic shift, moving rapidly from slow, paper-based processes to instant digital transfers. Financial analysts and industry leaders now believe that institutions capable of delivering real-time remittance and offering innovative investment tools will dominate the market.

From the 1970s to the 1990s, the Demand Draft (DD) was the main channel for Bangladeshi expatriates to send money home. This paper-reliant system, involving posting the draft and subsequent bank clearing, often meant recipients had to wait 15-20 days for the funds to reach their families.

Now, with technological advancements, expatriates demand that funds reach their relatives in real-time, either directly into bank accounts or via mobile financial services (MFS) within seconds. Furthermore, they are increasingly seeking additional features, such as investment tools and savings opportunities, to help them secure their future.

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These insights were shared at a daylong workshop titled "The Changing Landscape and Emerging Opportunities of Bangladesh's Remittance," held at a resort in Gazipur on Thursday (25 September). The event was organised by the MFS provider bKash and attended by officials from various banks and financial institutions.

Ali Ahmmed, chief commercial officer of bKash, noted the complete digitisation of the remittance process: "Previously, bank representatives would travel abroad to increase workers' account usage and transactions. Now, the entire process of sending expatriate income has become digital through various MFS and money transfer organisations. We aim to create a roadmap for the next year based on the discussions from this workshop."

Presenting the keynote paper, Mohammad Zahidul Ahsan, head of Expatriate Income at bKash's Commercial Division, highlighted that around 1.5 crore Bangladeshis currently live in 176 countries. However, he cautioned that over half of the country's migrant workforce remains unskilled, limiting the expected growth in remittance inflows. "Many young people in Bangladesh who struggle to succeed at home believe they will find better opportunities abroad."

During a panel discussion, Shahriar Jamil, head of Remittance and Expatriate Banking at BRAC Bank, highlighted the dramatic transformation in how money is collected. He recalled that remittance used to mean "Cash over the Counter," requiring customers to travel long distances to bank branches or NGO offices, incurring both time and cost.

"Currently, almost 70% of the country's expatriate income comes through digital means," he said. However, he cautioned that the demand for sending remittances in cash has not completely disappeared.

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Zahurul Karim Chowdhury, head of treasury at Trust Bank, underscored the critical importance of expatriate income during the recent foreign currency crisis. He also suggested that supervision and policy-making can sometimes negatively impact a bank's ability to receive remittances.

Presenting the keynote in the second session, Jayanta Sen, general manager of bKash's Marketing Division, provided compelling statistics on digital readiness: 92% of remittance-dependent households now use a smartphone, and 77% of these are connected to the internet.

Furthermore, Sudarshan Subhashish Das, head of growth at the FinTech startup TapTap Send, speaking in the third session, stressed the modern consumer's priorities: they want to send money quickly, easily, and with minimal time. He also noted that artificial intelligence (AI) is bringing significant benefits to the remittance sector.

The workshop also featured addresses from other banking officials, including Khandaker Asif Khaled, head of Non-Resident Banking Division at Mutual Trust Bank.