Acknowledgement

Executive Summary
bKash Limited is a subsidiary of BRAC Bank. It was first originated in 2010 as a joint venture
between BRAC Bank Limited, Bangladesh and Money in Motion LLC, USA. Mainly it is a
private limited company which is created specially to provide mobile financial services in
Bangladesh. Its mission is to provide affordable, suitable, convenient and consistent financial
service towards the consumers. More than 70 people among each 100 of the population of the
country live in rural areas where access of the formal financial services is difficult. But these are
the people mostly in need of such services. And that is why bKash’s main focus is to serve the
deep rural people. bKash is promising their users to make life more easy and comfortable day by
day by providing attractive and extraordinary products and services. bKash is proud to serve
more than three crores of its consumers through a number of two lac agents. Consumers can now
send money anywhere, pay bill, shop and buy airtime through bKash. bKash provides some core
and experiential benefits to their users. bKash ensures its users to be fast, secure, convenient,
affordable and nationwide.

Market Type
Mobile Financial Services (MFS) is an approach to offering financial services that combines
banking with mobile wireless networks which enables users to execute banking transactions.
This means the ability to make deposits, withdraw, and to send or receive funds from a mobile
account. Often these services are enabled by the use of bank agents that allow mobile account
holders to transact at independent agent locations outside of bank branches. MFS is still new in
Bangladesh and this report aims to capture its early development and learn lessons.

Access to formal financial services can help households to better plan and manage their lives.
MFS offers the opportunity to build another channel beyond the bank branch and ATM network
to enable millions to have easier access to the formal banking system. Bangladesh Bank aims to
build a commercially viable, competitive and safe MFS market. Bangladesh has a big market for
mobile telecom business and the industry is expanding quickly. This MFS services is given by
the mobile operators. The estimated total population of Bangladesh was 152,518,015 on 16th
July and the total numbers of active mobile phone subscribers are 92,120,000 at the end of May
2019, i.e. around 60.40% of total population use mobile phones. So, MFS have the opportunity
to reach around 60.40% of total population in Bangladesh.

Mobile banking or mobile financial service is mainly dominated by the banks operating in
Bangladesh. The major players of the industry are BRAC Bank (Baksh) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islamic Bank Bangladesh Limited,
Bank Asia, Mercantile Bank limited. The industry consists of twenty-eight licensed banks and
twenty of them started their operation. Mobile financial service is a Bangladesh Bank’s initiative
to execute financial inclusion of the people who do not have access to traditional banking
services. The aim the industry is to provide banking service to 115.627 million mobile phone
users of Bangladesh. The targeted customer group is rural people who can enjoy banking facility
via using their mobile phone. The key suppliers of this industry are the mobile phone network
operators. Currently there are six network operators in Bangladesh and they are Grameen phone
limited, Banglalink Digital Communication Limited, Robi Axiata Limited, Airtel Bangladesh
Limited, Pacific Bangladesh Telecom Limited (Citycell) and Tele talk Bangladesh limited.
Among them Grameen Phone holds the top customer base and followed by Banglalink, Robi,
Airtel, Citycell and Teletalk. Another major supplier is the IT companies who support or manage
the IT systems of the companies and vendors of IT system consists of both foreign and local
entities. Funding is one of the major concerns for any financial service provider. In mobile
banking industry of Bangladesh there are foreign investors, general public (deposits), parent
banks, and non-deposit borrowing are available for funding the service.

Traditional banking service and micro finance service industries are major competitors of the
industry. Since banking industry is at mature stage in Bangladesh, mobile financial service
industry struggling to attain the financial service market of Bangladesh. Cross boarder
transaction service companies (such as Western Money Union) are also major competitor of
mobile financial service industry.
The major substitutes for mobile banking can be credit and debit cards issued by banks, online
transaction services, payment by checks, cash payment. Unofficial and non-regulatory payment
services are also potential substitutes for this service.
In Bangladesh there are 56 scheduled banks operating in banking industry and 28 of them had
been approved to operate mobile banking service. Currently 20 out 28 approved banks have
started their operation. Remaining banks are very likely to enter in the industry. Moreover, above
30 non-banking financial institutes and mobile phone operators are also potential entrants of the
industry.
Major Competition
Traditional banking service and micro finance service industries are major competitors of the
industry. Since banking industry is at mature stage in Bangladesh, mobile financial service
industry struggling to attain the financial service market of Bangladesh. Cross boarder
transaction service companies (such as Western Money Union) are also major competitor of
mobile financial service industry. The major substitutes for mobile banking can be credit and
debit cards issued by banks, online transaction services, payment by checks, cash payment.
Unofficial and non-regulatory payment services are also potential substitutes for this service. In
Bangladesh there are 56 scheduled banks operating in banking industry and 28 of them had been
approved to operate mobile banking service. Currently 20 out 28 approved banks have started
their operation. Remaining banks are very likely to enter in the industry. Moreover, above 30
non-banking financial institutes and mobile phone operators are also potential entrants of the
industry.

Bangladesh Bank introduced a new rule that every Bank should have mobile banking service. So,
it is not that much hard to enter the industry. But beside this Bangladesh Bank also has some
regulations for new entrants. Existing companies have created brand positioning and economies
of scale in coverage that also act as entry barrier. In addition, there is price battle between the
competitors regarding service charge. So potential direct entry to the industry is relatively
restricted at the moment, due to control over licenses. However, companies are finding other
ways to enter the industry, i.e. through merging with existing operators’ mobile financing
industry. Mobile banking is a high-tech industry and the substitutes that would replace the
services of today are strongly related to the factor of innovation. In case of Bangladesh mobile
banking industry, substitutes exist in the form of government post office and some private
courier service providers. However, there is no strong competitive substitute for mobile banking
industry as the existing alternatives are either nearly obsolete or in embryonic stage and thus
posing very little threat to the industry. bKash is the only company in the country who provides
services through huge number of agents and ATM booths.

Promotional Planning Strategy

Marketing Strategy of bKash
The marketing logic by which the company hopes to create this customer value and achieve
these profitable relationships with the customers are the marketing strategies. The company
decides which customers it will serve (segmentation and targeting) and how (differentiation and
positioning). It identifies the total market and then divides it into smaller segments, selects the
most promising segments, and focuses on serving and satisfying the customers in these
segments. Guided by marketing strategy, the company designs an integrated marketing mix made
up of factors under its control—product, price, place, and promotion (the four Ps). To find the
best marketing strategy and mix, the company engages in marketing analysis, planning,
implementation, and control. Through these activities, the company watches and adapts to the
Marketing Strategy of bKash the marketing logic by which the company hopes to create this
customer value and achieve these profitable relationships with the customers is the marketing
strategies. The company decides which customers it will serve (segmentation and targeting) and
how (differentiation and positioning). It identifies the total market and then divides it into
smaller segments, selects the most promising segments, and focuses on serving and satisfying the
customers in these segments. Guided by marketing strategy, the company designs an integrated
marketing mix made up of factors under its control—product, price, place, and promotion (the
four Ps). To find the best marketing strategy and mix, the company engages in marketing
analysis, planning, implementation, and control. Through these activities, the company watches
and adapts to the actors and forces in the marketing environment. We will now look briefly at
each activity. In later chapters, we will discuss each one in more depth. to succeed in today’s
competitive marketplace, companies must be customer centered. They must win customers from
competitors and then keep and grow them by delivering greater value. But before it can satisfy
customers, a company must first understand customer needs and wants. Thus, sound marketing
requires careful customer analysis. Companies know that they cannot profitably serve all
consumers in a given market— at least not all consumers in the same way. There are too many
different kinds of consumers with too many different kinds of needs. Most companies are in a
position to serve some segments better than others. Thus, each company must divide up the total
market, choose the best segments, and design strategies for profitably serving chosen segments.
This process involves market segmentation, market targeting, differentiation, and positioning.

Mobile banking or mobile financial service is mainly dominated by the banks operating in
Bangladesh. The major players of the industry are BRAC Bank (Baksh) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islami Bank Bangladesh Limited, Bank
Asia, Mercantile Bank limited. The industry consists of twenty-eight licensed banks and twenty
of them started their operation.
Mobile financial service is a Bangladesh Bank’s initiative to execute financial inclusion of the
people who do not have access to traditional banking services. The aim the industry is to provide
banking service to 115.627 million mobile phone users of Bangladesh. The targeted customer
group is rural people who can enjoy banking facility via using their mobile phone.
The key suppliers of this industry are the mobile phone network operators. Currently there are
six network operators in Bangladesh and they are Grameen phone limited, Banglalink Digital
Communication Limited, Robi Axiata Limited, Airtel Bangladesh Limited, Pacific Bangladesh
Telecom Limited (Citycell) and Teletalk Bangladesh limited. Among them Grameen Phone
holds the top customer base and followed by Banglalink, Robi, Airtel, Citycell and Teletalk.
Another major supplier is the IT companies who support or manage the IT systems of the
companies and vendors of IT system consists of both foreign and local entities. Funding is one
of the major concerns for any financial service provider. In mobile banking industry of
Mobile banking or mobile financial service is mainly dominated by the banks operating in
Bangladesh. The major players of the industry are BRAC Bank(Baksh) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islami Bank Bangladesh Limited, Bank
Asia, Mercantile Bank limited. The industry consists of twenty eight licensed banks and twenty
of them started their operation.
Mobile financial service is a Bangladesh Bank’s initiative to execute financial inclusion of the
people who do not have access to traditional banking services. The aim the industry is to provide
banking service to 115.627 million mobile phone users of Bangladesh. The targeted
customer
group is rural people who can enjoy banking facility via using their mobile phone.
The key suppliers of this industry are the mobile phone network operators. Currently there are
six network operators in Bangladesh and they are Grameen phone limited, Banglalink
Digital
Communication Limited, Robi Axiata Limited, Airtel Bangladesh Limited, Pacific
Bangladesh
Telecom Limited (Citycell) and Teletalk Bangladesh limited. Among them Grameen
Phone
holds the top customer base and followed by Banglalink, Robi, Airtel, Citycell and
Teletalk.
Another major supplier is the IT companies who support or manage the IT systems of
the
companies and vendors of IT system consists of both foreign and local entitites. Funding is one
of the major concerns for any financial service provider. In mobile banking industry of
Mobile banking or mobile financial service is mainly dominated by the banks operating
in
Bangladesh. The major players of the industry are BRAC Bank(Bkash) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islami Bank Bangladesh Limited, Bank
Asia, Mercantile Bank limited. The industry consists of twenty eight licensed banks and twenty
of them started their operation.
Mobile financial service is a Bangladesh Bank’s initiative to execute financial inclusion of the
people who do not have access to traditional banking services. The aim the industry is to provide
banking service to 115.627 million mobile phone users of Bangladesh. The targeted
customer
group is rural people who can enjoy banking facility via using their mobile phone.
The key suppliers of this industry are the mobile phone network operators. Currently there are
six network operators in Bangladesh and they are Grameen phone limited, Banglalink
Digital
Communication Limited, Robi Axiata Limited, Airtel Bangladesh Limited, Pacific
Bangladesh
Telecom Limited (Citycell) and Teletalk Bangladesh limited. Among them Grameen
Phone
holds the top customer base and followed by Banglalink, Robi, Airtel, Citycell and
Teletalk.
Another major supplier is the IT companies who support or manage the IT systems of
the
companies and vendors of IT system consists of both foreign and local entitites. Funding is one
of the major concerns for any financial service provider. In mobile banking industry of
Mobile banking or mobile financial service is mainly dominated by the banks operating
in
Bangladesh. The major players of the industry are BRAC Bank(Bkash) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islami Bank Bangladesh Limited, Bank
Asia, Mercantile Bank limited. The industry consists of twenty eight licensed banks and twenty
of them started their operation.
Mobile financial service is a Bangladesh Bank’s initiative to execute financial inclusion of the
people who do not have access to traditional banking services. The aim the industry is to provide
banking service to 115.627 million mobile phone users of Bangladesh. The targeted
customer
group is rural people who can enjoy banking facility via using their mobile phone.
The key suppliers of this industry are the mobile phone network operators. Currently there are
six network operators in Bangladesh and they are Grameen phone limited, Banglalink
Digital
Communication Limited, Robi Axiata Limited, Airtel Bangladesh Limited, Pacific
Bangladesh
Telecom Limited (Citycell) and Teletalk Bangladesh limited. Among them Grameen
Phone
holds the top customer base and followed by Banglalink, Robi, Airtel, Citycell and
Teletalk.
Another major supplier is the IT companies who support or manage the IT systems of
the
companies and vendors of IT system consists of both foreign and local entitites. Funding is one
of the major concerns for any financial service provider. In mobile banking industry of
Procedure of Application
To open a bKash account, new customers need only visit a bKash agent who checks their
identity papers and sets up an electronic wallet (e-wallet). This is a virtual account linked to the
customer’s mobile phone number for unique identification. Customers add electronic money (e-
money) to their e-wallets through remittances and salary payments.4 They can also give bKash
agents physical cash to convert into e-money, called ‘cash-in.’ Remittances and cash-in are the
most common ways for the unbanked to fund their e-wallets. Per regulation, bKash initially
deposited the full value of a customer’s e-wallet balance in a BRAC Bank account monitored by
the central bank. Because of the enormous banking support required in cash management,
together with the need to diversify customer deposits, beginning in 2015 the central bank
required bKash to deposit customers’ money with multiple banks. To access their bKash
accounts, customers dial a code on their mobile phones which generates a text menu. Customers
then enter a unique personal identification number (PIN) to access their e-wallets and make
transactions. They can withdraw physical cash or ‘cash out’ from their e-wallets at any time by
going to a bKash agent’s store. For many customers, a bKash agent is the familiar face of the
owner of the local grocery store. An agent’s role in providing actual ‘cash-in and cash-out’
services was critical from the beginning, as Bangladeshis live in a predominantly cash-based
economy and would lose confidence in mobile financial services if they couldn’t get cash from
their e-wallets on demand. Agents educate customers and provide step-by-step guidance to
making transactions. In return, becoming a bKash agent is an opportunity for small entrepreneurs
to earn additional revenue and increase traffic to their stores. As per regulations for mobile
financial services, bKash regularly trains agents on topics such as “know your customer”, anti-
money laundering and combating the financing of terrorism, and fraud management. This helps
agents to keep abreast with the latest information on financial protection.

Mobile banking or mobile financial service is mainly dominated by the banks operating
in
Bangladesh. The major players of the industry are BRAC Bank(Bkash) Limited, Dutch Bangla
Bank Limited(rocket), Standard chartered Bank Limited, Islami Bank Bangladesh Limited, Bank
Asia, Mercantile Bank limited. The industry consists of twenty eight licensed banks and twenty
of them started their operation.
Mobile financial service is a Bangladesh Bank’s initiative to execute financial inclusion of the
people who do not have access to traditional banking services. The aim the industry is to provide
banking service to 115.627 million mobile phone users of Bangladesh. The targeted
customer
group is rural people who can enjoy banking facility via using their mobile phone.
The key suppliers of this industry are the mobile phone network operators. Currently there are
six network operators in Bangladesh and they are Grameen phone limited, Banglalink
Digital
Communication Limited, Robi Axiata Limited, Airtel Bangladesh Limited, Pacific
Bangladesh
Telecom Limited (Citycell) and Teletalk Bangladesh limited. Among them Grameen
Phone
holds the top customer base and followed by Banglalink, Robi, Airtel, Citycell and
Teletalk.
Another major supplier is the IT companies who support or manage the IT systems of
the
companies and vendors of IT system consists of both foreign and local entitites. Funding is one
of the major concerns for any financial service provider. In mobile banking industry of

Pricing Structure
DELIVER FINANCIAL SERVICES THROUGH BASIC PHONES. The low-income customers
bKash targeted had basic phones and so the company built a user interface that would work on
any type of phone, including the basic $15 handsets widely used by the working poor.

PARTNER WITH MOBILE NETWORK OPERATORS. bKash sought partnerships with mobile
network operators in order to reach a large number of customers quickly. Moreover, multiple
partnerships would facilitate seamless transactions between customers regardless of their
network. So, bKash set up revenue-sharing agreements with four providers—Robi, Grameen
Phone, Banglalink, and Airtel—over a three-year period beginning in 2010. Collectively these
companies had access to over 98 percent of Bangladesh’s 100 million mobile phone subscribers.
By 2016, bKash had built partnerships with all mobile providers in Bangladesh.

OFFER LOW-COST TRANSACTIONS. bKash’s business model was based on low fees and
high volume—it charged very low transaction fees and relied on billions of small-size
transactions to generate revenue. Affordable fees helped drive the adoption of mobile financial
services among low income customers. Unlike some other providers, bKash didn’t charge
customers a fee to add money to their e-wallets. Nor did it set a minimum fee for withdrawing
physical cash from an e-wallet. Instead, bKash charged customers who received a money transfer
a flat fee on the amount withdrawn. Transactions fees to institutions including businesses and
merchants were other sources of revenue for the company.

LEVERAGE COMMERCIAL DISTRIBUTORS. bKash built a vast agent distribution network

to serve customers who were geographically dispersed in urban, semi-urban, and rural locations.
Its agents are typically small retailers such as the owners of mom-and-pop shops. They enrol
customers, educate them about mobile financial services, and convert cash or other payments
into e-money and vice versa as customers require

Pricing Structure and Limitations

Service
Amount per
Transaction
Maximum Amount
Charge

Minimum
(TK)
Maximum
(TK)
Per Day
(TK)
Per
Month
(TK)
Per Transaction (TK)

Cash-In
50
125,000
125,000
125,000
Free
Cash-Out from
Agent
50
125,000
125,000
125,000
0.925 per 50 taka
Cash-Out from ATM
2,000
20,000
20,000
50,000
Tk. 40 per 2000 Tk.
Transfer/Send
Money
10
10,000
10,000
10,000
Tk. 2 for any amount
Payment (merchant)
1
No Limit
No Limit
No Limit
Free
Receive International
Remittance
50
125,000
125,000
250,000

Fig: 1 Pricing Structure

Production Pricing
In mobile financing industry companies are not those much aware about the branding because
the entire mobile financing service provider is under any BANK. Beside this it seems that bkash
and DBBL mobile banking are far aware about branding then others. This two-service provider
shown uniqueness, Emotional Connections and Consistency in there branding.

bKash is Bangladesh’s first

complete mobile financial
service provider in the industry
of mobile
banking and bKash introduces
Mobile Banking Services in
Bangladesh. BKash paved the
way
for the people living in rural
areas to get introduced with
money transfer services via
mobile
phones. Therefore it can be
stated that bkash followed
“Diversification Strategy” as it
introduced
new products which is mobile
financial services, in the new
market which is the Mobile
Banking
Industry.
Recently Bkash has signed
various agreements with
different universities, hospitals
and clothing
brands so that the customers of
this organizations can make
their payments through Bkash.
Moreover, BKash has launched
'Buy Airtime' service allowing
the bKash wallet users to top up
mobile balance of Banglalink,
Robi and Airtel numbers
through bKash without the free
of any
additional charges. Therefore
Bkash is now pursuing “Product
Development Strategies” as the
organization is trying to
introduce new kinds of services
in the existing market
bKash is Bangladesh’s first complete mobile financial service provider in the industry of mobile
banking and bKash introduces Mobile Banking Services in Bangladesh. BKash paved the way
for the people living in rural areas to get introduced with money transfer services via mobile
phones. Therefore, it can be stated that bkash followed “Diversification Strategy” as it
introduced new products which is mobile financial services, in the new market which is the
Mobile Banking Industry. Recently Bkash has signed various agreements with different
universities, hospitals and clothing brands so that the customers of this organizations can make
their payments through Bkash. Moreover, BKash has launched 'Buy Airtime' service allowing
the bKash wallet users to top up mobile balance of Banglalink, Robi and Airtel numbers through
bKash without the free of any additional charges. Therefore, Bkash is now pursuing “Product
Development Strategies” as the organization is trying to introduce new kinds of services in the
existing market. Bkash is not only limited to paving the way of financial transaction for people
of low income but also it is constructing new ways to introduce more financial services. People
can now pay their medical fees, tuition fees, shopping bills with the help their Bkash accounts.
Moreover, Bkash only had Grameenphone and RobiAxiata as their partners, now Banglalink and
Airtel also stepped in. In addition to that the customers of these mobile operators can recharge
their balance with the help of Bkash. However, Bkash is now reaching more and more customers
by expanding in the form of increased number of ATM cash outs and customer centers in various
districts of Bangladesh.
Advertising

Unique branding and advertising strategy is one of the key factors of bkash’s early leadership
and success in m-banking industry. The marketing team is continuously working to come up
with innovative advertising and promotional ideas. Hence, they are dominating the market in
term of customer base as well as the market share.

Advertising and branding strategies

 TVCs: Frequent new TVCs for promoting the service.

 Billboards: Attractive large billboard with clear message
 Agent Point: Posters at agents’ shop.
 Wall paints: Advertising through wall painting
  Branding through Vehicles: Car stickers, boat branding, posters on the back of rickshaw

Conclusion
bKash has established itself as an early market leader of Mobile Financial Service or m-Banking
Industry by creating stronger brand value and implementing share building strategy at embryonic
stage of the industry. As the industry continued to grow, bKash continuously expanded its
operation and range of service. Marketing department and the Creative Teams have been playing
key strategic roles to place bKash at gaining competitive position and to differentiate from its
competitors. However, the industry has the characteristics of Oligopoly Market and the
competition will intensify in near future. So, bKash’s differentiation strategies may not be
feasible for a very long time. bKash should focus on cost minimization and adopt cost leadership
strategy to survive in the market. Even though current strategic decisions have rewarded the
company with early leadership, but strategies must be improved and redesigned to persist as a
market leader. Rapid growth of the industry and increasing number of competitors are driving
the need for bKash should reevaluate and improve in marketing strategies to prepare itself for
more intense competition. Adopting new marketing strategies will help the company to protect
its position in the market.

References
https://www.studocu.com/row/document/university-of-dhaka/fundamental-of-
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https://www.academia.edu/31991544/Report_On_Overview_of_bKash
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/8766/13104215_BBA.pdf?
sequence=1&isAllowed=y
https://www.assignmentpoint.com/business/management/comparative-analysis-of-bkash-
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https://www.bkash.com/bn