Module Title: Consultancy, Enterprise and Innovation
Module Code: MMP-7-CEI
An assignment on
“A Strategic Analysis of bKash in Bangladesh”
Module Leader: Dr Wael Saghir
J Number:
Word Count: 1447
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Executive summary
This report thoroughly studies bKash, the dominant entity in Bangladesh’s mobile financial
services. It examines the innovation approach and its market position of bKash, identifying
strengths—for example, reaching a broad network base and innovative solutions that lack
customer service. The report offers vital strategic enhancements to AI chatbots and improved
training for service team members to increase client satisfaction. The steps mentioned above are
expected to further consolidate bKash’s market leadership and assist its mission of making
financial inclusion pan-Bangladesh. This demonstrates how customer-driven innovations remain
crucial in maintaining competitive advantage in digital finance.
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Table of contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Innovation at bKash.....................................................................................................................................4
Innovation Strategy:................................................................................................................................4
Service Offerings:....................................................................................................................................5
Technology and Security:........................................................................................................................6
Market Position of bKash............................................................................................................................7
Market Share and Growth:.......................................................................................................................7
Competitive Landscape:..........................................................................................................................7
Challenges and Opportunities:.................................................................................................................8
Evaluation of Strengths and Weaknesses....................................................................................................8
Strengths:................................................................................................................................................9
Weaknesses:............................................................................................................................................9
Recommendations for Improvement..........................................................................................................9
Conclusion.................................................................................................................................................11
References:................................................................................................................................................12
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Introduction
This report is an analysis of bKash, a prominent mobile financial service in Bangladesh, that
looks into their innovativeness and places the market as well as areas where further
improvements can be made. bKash started its operation in 2011, and it attained paramount
significance for better financial inclusion through digitization (Org et al., 2021). In this regard,
we evaluate bKash’s innovativeness in developing a successful strategy, its position in
competitive markets, and strengths/weaknesses as factors affecting effectiveness, with a focus
placed on better customer service responsiveness. Applying market analysis and secondary data,
we elaborate on how digital adoption and a customer-driven approach assured bKash’s
leadership over emerging markets. Exogenous factors that confront bKash are enumerated, and
appropriate strategic measures for strengthening its customer service quality are presented in the
report. These conclusions aim to clarify the practical innovation and consumer engagement
behind the mobile finance sector, which supports market leadership and the development of
financial inclusion.
Innovation at bKash
Innovation Strategy:
Source: (Adnan, 2020)
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Innovation within the mobile financial sector is manifested on bKash’s part by focusing on
achieving financial inclusion and technology-based solutions. Since its launch in 2011, bKash
has remained the leader of the digital finance movement in Bangladesh, serving that part of the
population that is neither banked nor relatively economically well-off (Aziz and Naima, 2021).
As a strong mobile financial service provider, bKash adopts advanced technology to ensure that
its services, including cash in and out money transfers, bill payments, and even top-ups, are
secure but easily accessible. Its innovation strategy does not only focus on technological
improvements but also user-friendly services directed to customers with unique demands. With
this focus, perhaps bKash has established dominance in the Bangladesh market for mobile
financial services, from which millions have benefited from its path-breaking solutions.
Service Offerings:
Source: (Yesmin et al., 2018)
bKash provides several distinct service offerings to address its customers' precise wants and
needs in Bangladesh, thereby distinguishing itself from other firms operating within the
competitive mobile financial services industry. Some include users' ability to recharge their
phones, pay utilities through nearby outlets, and participate in international remittance programs
from mobile devices. Moreover, bKash has introduced an advanced savings offering in
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conjunction with local banks, allowing customers to save their money safely through its mobile
wallet. One of the other features is based on the QR payment system, which quickens the
transaction process and allows customers to make payments by scanning a unique code. For
merchants, it is more convenient than working with traditional credit cards. These services,
specifically designed to fulfill the financial needs of its clientele base, not only epitomize
bKash's innovative approach but also position it as a leader in Bangladesh’s mobile financial
system, providing holistic, secure, and user-friendly suites.
Technology and Security:
She espoused the praxis of bKash by adopting the latest technology and safety measures, which
has distinguished it as a mobile financial services icon. bKash uses a secure and encrypted
platform with VISA technology to ensure the security of customer transactions and
confidentiality when it comes at hand. It is very essential in our daily lives. The company has
attained PCI-DSS compliance, a pointer to the high level of protection against fraud and breach
guaranteed by the firm for its customers’ information. This emphasis on technology and security
further improves the user experience by ensuring a stable service provided in a completely secure
way, but also consolidates bKash's standing as a leader of the mobile financial services industry
in Bangladesh, thus constituting its advancement level.
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Market Position of bKash
Market Share and Growth:
Source: (Jahan, 2019)
bKash has become a leader in the Bangladeshi market for MFS, securing the largest market share
compared to competitors. Brash is the most notable market player, holding about 40% of the
segment and adding millions of active accounts daily. This enviable market share is indeed the
epitome of bKash’s strong upward trend and massive user population. The company’s revenue
has been steadily growing over the years, whereby in 2021, it recorded a growth rate of about
5%, thus pointing out that its services are more and more accepted by end users, making up more
significant portions of Bangladesh population (Sahoo and Bishnoi, 2021). This expansion is
corroborated by some staggering increases in profit performance in the first nine months of 2023.
It highlights bKash’s financial viability and critical contribution towards deepening Finance-
Inclusion in Bangladesh.
Competitive Landscape:
In the Bangladeshi mobile financial services (MFS) industry, the uniqueness of bKash lies in its
accessibility and convenience coupled with an innovative design, allowing for securing a
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significant market share even against rivals such as Rocket Today or Nagad Tomorrow. Its
strategy focuses on the unserved and rural areas, relying upon modern technology for safe
transactions and introducing remittances, among other services. These initiatives not only cater
to various financial desires but also ensure customer retention, thereby giving bKash an edge in
the market. This approach ensures financial inclusion and establishes bKash as a nucleating,
innovative, and customer-focused entity in the national economic system. It demonstrates its
drive for progress in the MFS/linked services sector.
Challenges and Opportunities:
The challenges Bkash, a significant player in Bangladesh's digital financial service provider, are
regulatory changes and technological innovation, respectively, to comply with legal stipulations
and compete. Nevertheless, prospects attract with the ever-greater adoption rates of digital
payments developing under government efforts for financial inclusion and the growth of
smartphone penetration. In addition to the other factors, along with Bangladesh's economic
growth, provides bKash an opportunity to increase its services and viewers. As the industry is
converting and transforming rapidly, compliance with regulatory aspects along with
technological advancements is essential for bKash to cement its authority as a market leader.
Evaluation of Strengths and Weaknesses
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Source: (Hossain, 2019)
Strengths:
Within Bangladesh, bKash stands out due to its vast network of nearly 330 thousand agents and
over half a million merchants across the country; this ensures easy reach, not even in remote
areas (Farhadur et al., 2020). Innovative focus is evidenced in diversified financial services
supporting different user needs, from simple transactions to savings and loans. Brand strong
presence and need-based convenience resulted in the trusted and unmatched identity of bKash
among more than 70 million verified users regarding mobile-based financial services, including
money transfer, domestic remittance, personal loans, etc., throughout the country. This trust and
reputation are the cornerstones of success, securing dominance in Bangladesh’s highly
competitive mobile financial market thanks to combining legible accessibility, an innovative
attitude, and a strong brand identity within bKash theories.
Weaknesses:
Although it has a clear leadership, bKash still needs to improve the accessibility of services in
rural areas; digital platform user experience and customer service responsiveness also need
enhancement. Broadening its network to regions outside the cities will help financial inclusion as
it would address connectivity and literacy issues. Optimizing the app and website to get rid of
technical glitches and simplifying transactions improves satisfaction among users. Enhancing
customer service, including quicker response to complaints and effective complaint resolution,
would foster trust cum loyalty. Hence, solving these issues will reinforce bKash’s leading market
position and help the company achieve its aspiration of financial inclusion across Bangladesh,
which benefits both owners and users.
Recommendations for Improvement
1. Enhance Customer Responsiveness with AI and Training: Implement AI-driven chatbots
for immediate response to common queries and provide high-level training for customer service
representatives to handle complex issues effectively, improving overall customer satisfaction and
loyalty.
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2. Leverage Technology and Agent Network: Utilize bKash's vast agent network to establish
local support centers near service areas, facilitating personalized support and engagement with
community stakeholders and enhancing service delivery and brand image.
3. Improve Service Efficiency and Accessibility: Through swift issue resolution via AI
chatbots and trained agents, alongside establishing localized support centers, bKash aims to be
more accessible and trusted within communities, improving financial literacy in Bangladesh.
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Conclusion
The paper focuses on the innovative schemes that bKash has employed in doing business and
appreciating its leadership in the market. However, it pays keen attention to customer service as
an area requiring improvement by bKash. It provides effective interventions on strategic
solutions by technically linking customer service, focusing more on human interaction. Covering
up the role of strategic direction by means of the ‘People Working Together to Increase
Customer Satisfaction and Loyalty’ diagram illustrates the importance of patterns that were
discussed above. bKash is instead portrayed to be essentially facilitating financial inclusion in
Bangladesh. Its key factors are its focus on tech-led initiatives and outstanding customer service
while sustaining market leadership, which requires careful deliberation. It highlights that
innovation and client service are critical for the evolution of the mobile financial sector enjoying
the digital space.
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References:
Adnan, M.A. (2020). How bKash Changed Bangladesh. dspace.uiu.ac.bd. [online] Available at:
http://dspace.uiu.ac.bd/handle/52243/1657.
Aziz, A. and Naima, U. (2021). Rethinking digital financial inclusion: Evidence from
Bangladesh. Technology in Society, 64, p.101509. doi
https://doi.org/10.1016/j.techsoc.2020.101509.
Farhadur, R., Erad, K., Tasvir, B. and Mahabub (2020). COVID-19 impact and responses:
Bangladesh Compiled by. [online] Available at:
https://gsgii.org/wp-content/uploads/2020/05/Bangladesh-NAB_COVID-19-Impact-and-
Responses_April-2020.pdf.
Ghobakhloo, M., Asadi, S., Iranmanesh, M., Foroughi, B., Mubarak, M.F. and
Yadegaridehkordi, E. (2023). Intelligent automation implementation and corporate sustainability
performance: The enabling role of corporate social responsibility strategy. Technology in
Society, [online] 74, p.102301. doi:https://doi.org/10.1016/j.techsoc.2023.102301.
Hossain, T. (2019). Digital financial services of Bangladesh: SureCash, bKash, iPay, Upay.
dspace.bracu.ac.bd. [online] Available at: http://dspace.bracu.ac.bd/xmlui/handle/10361/12179.
Huang, M.-H., Rust, R. and Maksimovic, V. (2019). The Feeling Economy: Managing in the
Next Generation of Artificial Intelligence (AI). California Management Review, [online] 61(4),
pp.43–65. doi:https://doi.org/10.1177/0008125619863436.
Jahan, M.T. (2019). A comparative study between premier bank’s money and the leading mobile
financial service provider bKash. dspace.bracu.ac.bd. [online] Available at:
http://dspace.bracu.ac.bd/xmlui/handle/10361/13786.
Org, W., Khan, I., Karrar, H. and Jaffar (2021). Searching for the Binding Constraint to Digital
Financial Inclusion in Pakistan: A Decision Tree Approach. [online] Available at:
https://pmic.pk/wp-content/uploads/2021/09/pakistan-decision-tree.pdf.
Sahoo, P. and Bishnoi, A. (2021). Impact of outward foreign direct investment: Evidence from
Asia. Journal of Policy Modeling. Doi:https://doi.org/10.1016/j.jpolmod.2021.06.004.
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Yesmin, S., Paul, T.A. and Mohshin Uddin, Md. (2018). bKash: Revolutionizing Mobile
Financial Services in Bangladesh? Business and Management Practices in South Asia, pp.125–
148. doi:https://doi.org/10.1007/978-981-13-1399-8_6.
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