Banks launching new apps, exchange houses to boost remittance

State-owned and private banks are leaning towards opening new exchange houses abroad along with ramping up new app-based services to increase remittance income. 

City Bank, Agrani Bank, National Bank and many others have already launched an app facility to increase remittance income from Singapore and Malaysia. Bangladeshis staying abroad can send remittances to the country using these smartphone apps, which saves time and labour.

Agrani Exchange House Pte Ltd, Singapore, a flagship remittance company of Agrani Bank Limited, launched the app Agrani Remit on 17 March 2020 to mark the 100th birth centenary of Bangabandhu Sheikh Mujibur Rahman.

In October last year, the City Remit mobile app was launched in Malaysia to make it easier for expatriate Bangladeshis to send remittance via a legal route. Malaysia's CBL Money Transfer, a subsidiary of City Bank of Bangladesh, has launched a cross-border banking remittance channel app.

National Bank Limited's (NBL) QPay app was launched for easily sending money from Malaysia to Bangladesh on 14 May this year. Through this app, remittances can be sent from Malaysia to any bank in Bangladesh at any time, legally, easily and at attractive rates.

Prime Bank has recently launched a state-of-the-art real-time remittance service, RemitPrime, for its subsidiaries in Singapore and the UK.

Islami Bank's Cellfin app allows customers to receive remittances instantly from any country in the world through the Visa Direct service.

According to banks, tif more digital services can be extended to customers, then more remittance will come to the country. For many banks, a large portion of remittance income is coming through their dedicated remittance apps.

New exchange houses being opened abroad

Recently, the state-owned Sonali Bank has decided to open an exchange house in Male, the capital of the Maldives, to boost remittance inflow by 180,000 Bangladeshi expatriates living in the island nation. The bank has already applied to the finance ministry to open the new exchange house.

Sonali's board of directors approved the Maldives exchange house on 13 December last year and decided to send a team to Male to verify the viability of the business. 

The bank wrote to the finance ministry that although the Maldives has been at the 26th position in Bangladesh's remittance list for the last three fiscal years, the amount of remittance is very low due mostly to the huge popularity of informal money transaction channel "hundi". 

Sonali Bank's Foreign Remittance Management Division (FRMD) Co-ordinator and Deputy General Manager Munshi Zahidur Rashid said they are trying to open the exchange house as soon as possible. 

"As we have reviewed, the new exchange house will reduce the cost of money transfer by Bangladeshis and boost the country's remittance inflow," he added.

Not only Sonali, but many private banks are also thinking of opening new exchange houses.

Banks said that having their own exchange house minimises the cost of bringing remittance income. Remittance can be brought by appointing agents from distant places. Due to these reasons, opening exchange houses in countries with higher remittance income is being contemplated.

State-owned banks also increasing services

Banks have improved in the last few years not only in bringing in remittance, but also in customer service. Especially since the state-owned banks have more branches in rural areas, the customers in the remote areas are able to withdraw remittance easily. On the other hand, private banks are focusing on agent banking and opening sub-branches instead of opening new branches in rural areas.

The Business Standard talked about these issues with Masud Sheikh of Bianibazar upazila of Sylhet. He migrated to the UK at least two decades ago. He remits money to his relatives in Bangladesh almost every month through the state-owned Sonali Bank. 

When asked the reason for choosing this bank, he said, "There is a branch of Sonali Bank in my village, walking distance from my home. When I send money, family members get the money very easily. Besides, the ownership of state-owned banks belongs to the people, which means to me too. So I feel comfortable sending money through this bank."

Janata Bank's Paltan Branch Principal Officer Zakir Hossain told TBS that when customers bring remittance, they try to provide the best possible service. 

He told TBS, "A remitter can send remittance from any foreign money exchange through the state-owned bank. In this case, we provide customer service with utmost importance. Besides, regular remittance customers are given gifts every year and are encouraged to bring remittances through legitimate channels."

Mentioning that the process of sending remittances and withdrawing remittances in the country has been made much easier, the official said, "An 8-digit code is given to the remitter when he sends the remittance. He sends this code to the recipient of the remittance in Bangladesh. When a customer comes to us with a photo of the code and National ID card, it takes a few minutes for them to receive the remittance money."

When asked about the new services launched by banks for remittance customers, Bangladesh Foreign Exchange Dealers' Association (Bafeda) Chairman and Sonali Bank MD Afzal Karim told TBS, "The bank waived commission charge for remitters during this crisis period. The remittance house abroad would charge certain commissions from remitters previously but now they can send money home free of cost. Besides, a 2.5% incentive is being given by the government on remittances. We are hopeful of increasing remittances in the coming days."