Post on 13-Apr-2017
MFS Bangladesh: 2015 Highlights
Gregory Chen & Michelle Kaffenberger
24 June 2016
Data Sources
Financial Inclusion Insights by Intermedia (Demand Side). The primary data source for
this analysis comes from the Financial Inclusion Insights (FII) surveys, conducted by
Intermedia (http://finclusion.org/). FII surveys are annual, nationally representative surveys
conducted in multiple countries: Bangladesh, India, Indonesia, Pakistan, Kenya, Nigeria,
Rwanda, Tanzania, and Uganda. The surveys for Bangladesh were conducted in Sep/Nov
2013, Jun/Aug 2014, and Aug/Sep 2015, each with a nationally representative sample size
of 6,000 adults. Unless otherwise noted, the data presented here comes from the
Financial Inclusion Insights surveys.
Bangladesh Bank Mobile Financial Services (Supply Side). Additional complementary
data is included based on monthly data submitted to Bangladesh Bank by MFS providers.
This data is consolidated and made publicly available on the Bangladesh Bank website at
https://www.bb.org.bd/
2
Outline
1. High Level Overview 2013-2015
2. Deeper Dive into Users and Non-Users
3. Airtime Purchases & Advanced Financial Services
4. DBBL Mobile & bKash
3
High Level Overview
2013-20154Photo: Abdul Aziz, 2011 CGAP Photo Contest
2013-2015: MFS steady growthFII demand side data
5
22% 23%
33%
3% 5%
9%19% 18%
24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015
All mobile money use Registered use Unregistered use only
Surveys: (1) September-November, 2013; (2) June-August, 2014; and (3) August-September, 2015
Adult Use of MFS (%)
2013-2015: MFS steady growthSupply side data from Bangladesh Bank shows similar growth trajectory
6
-
10
20
30
40
50
60
70
80
90
100
110
2013 2014 2015 2016
Mil
lio
ns
MFS Accounts
Registered Accounts Active Accounts
122 Million Adults
* Active is <90 days with one transaction
2013-2015: MFS steady growthBangladesh Bank and bKash data show growth; slowing pace in 2015
7
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
April 2013 toMarch 2014
March 2014 toMarch 2015
March 2015 toMarch 2016
Pace of Growth %
Number of Transactions
Value of Transactions
bKash Annual Growth
of Revenue (%)
2014 81%
2015 50%
Source: BRAC Bank annual reports 2014
& 2015
Source: Bangladesh Bank
How long have you been using MFS?
Unregistered
users
23%
2013-2015: MFS steady growthDemand side also shows slowing pace
0%
5%
10%
15%
20%
25%
More than a year Six months - one year Less than six months
Wallet users Unregistered users
Most users have
been using for
more than a year
Growth is
steady
8
2013-2015: Demand/Supply Data
112m adults
Bangladesh Bank September 2015:
29m registered accounts/112m adults = 26%
12m active accounts/112m adults = 11%
Intermedia FII survey September 2015:
9% of adults with registered account
There is a mismatch in supply side data which counts registered accounts at 26% of adults
whereas demand-side survey data reports 9%.
It is difficult to know precisely why this gap exists, but some part of the explanation may be
individuals with multiple accounts*, dormant accounts and accounts opened which
individuals are not aware of or have forgotten about.
*An individual with accounts with two providers would count once in the demand
side data, but twice in the supply side data. 9
2013-2015: Summary
Looking at demand and supply data:
• Both indicate that growth continues, but at a slowing pace.
• Demand data shows 9% of adults with an account, quite
different than the total supply side reported data indicating
26%.
10
Deeper Dive into Users
and Non-Users11Photo: GMB Akash, 2011 CGAP Photo Contest
Adults Access phone Aware of mobilemoney
Use mobile money Active use
100%
24%
Un-
reg’d
92%
64%
Own
32%
Borrow
18%
Un-
reg’d9%
Registered
8%
Registered
MFS 2015: Use Patterns
19 of 20 access a
phone; 12 of 20
own a phone 9 in 10 adults
aware of MFS
For every
3 aware,
only 1
uses*
Un-reg’d = unregistered use most likely at OTC
Active is defined as using in the past 90 days.
* Ratio of users to those
aware rose to 36% in 2015
up from 25% in 2014/2013
12
Adults Access phone Aware of mobilemoney
Use mobile money Active use
100%
24%
Un-
reg’d
92%
64%
Own
32%
Borrow
18%
Un-
reg’d9%
Registered
8%
Registered
Unaware of MFS
8% unaware of MFS: who are they?
13Un-reg’d = unregistered use most likely at OTC
Active is defined as using in the past 90 days.
Those Unaware: Also More Vulnerable
30% G2P recipients not aware;
3x average
Own a Phone…10x more likely
than…
Do not own
phone
Men…3x more likely
than…Women
Highly Educated…18x more likely
than…No Education
14
15
1%
2%
3%
3%
4%
4%
4%
6%
7%
8%
9%
9%
11%
14%
18%
31%
0% 5% 10% 15% 20% 25% 30% 35%
Higher education
Secondary education
Have a bank account
Own phone
Men
Urban
Above PPI
Primary education only
Use and MFI
Population
Rural
Below PPI
Women
Borrow phone
No education
No phone use
% in each group who are unaware
Unaware are More Vulnerable
Individuals who do not own a
phone, those with no
education, women, the poor,
and rural residents are most
likely to be unaware of mobile
money.
National average
Adults Access phone Aware of mobilemoney
Use mobile money Active use
100%
24%
Un-
reg’d
92%
64%
Own
32%
Borrow
18%
Un-
reg’d9%
Registered
8%
Registered
Aware of MFS
59% of adults
are aware of
MFS but don’t
use. Who are
they and why
the large gap?
16Un-reg’d = unregistered use most likely at OTC
Active is defined as using in the past 90 days.
Access to Agents Not a Big Barrier
“Nearest agent”…..
• 46% 15 minutes or less
• 30% 15-60 minutes
• 21% do not know
Bangladesh Bank (Sept 2015) 542,400 agents.
Unique agents = 200,000. Dense population, not
many pockets without agents.
17
Trust Not The Major Barrier
Nonusers:
– What is the main reason you have never used mobile
money?
I do not trust that my money is safe: 0%
OTC Users:
– What is the main reason you have not signed up for an
account even though you use mobile money?
I do not trust that my money is safe: 0%
18
19
44%
49%
53%
55%
57%
57%
61%
61%
62%
63%
63%
63%
64%
65%
69%
71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Higher education
Have a bank account
Men
Own phone
Urban
Above PPI
Use and MFI
Population
No phone use*
Secondary education
Rural
Below PPI
No education
Primary education only
Women
Borrow phone
% in each group who are aware but do NOT use mobile money
Demographics Don’t Explain Much
Small differences
across demographics;
MFS is “democratized”
and accessible to
majority. Explanations
for use and non-use
difficult from survey
data.
*The % of those with no phone access who are aware but do not
use is relatively low because a large % of these are not aware at all.
Users/Non-Users Hard to Discern
Nonusers:
– “What is the main reason you have never used mobile
money?”
Top answer 81% ----- “I do not need it”
20
MFS is accessible but only moderately used.
Beyond this survey data offers limited insights.
Adults Access phone Aware of mobilemoney
Use mobile money Active use
100%
24%
Un-
reg’d
92%
64%
Own
32%
Borrow
18%
Un-
reg’d9%
Registered
8%
Registered
Users
Usage patterns among those
that use MFS
21Un-reg’d = unregistered use most likely at OTC
Active is defined as using in the past 90 days.
MFS Adds to the Financial Sector
22
16%
15%
8%
2%
7%
6%
2%
Use none of the services: 43%
MFI
MFS
Bank
% Adults who use
MFS Lacks Strong Use Cases
Nonusers - What is the main reason you have never used
mobile money?
I do not need it: 81%
OTC Users - What is the main reason you have not signed
up for an account even though you use mobile money?
I do not need it: 22%
Using an account is difficult: 20%
I have all the services I need through an agent: 18%
23
MFS and Phones Linked
Nearly 100%
of registered
users own a
phone
Phone ownership among mobile money users
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Registered users Unregistered users
Own phone Borrow phone No phone access
24
Phone Ownership and G2P
71% of government
welfare recipients do
not own a phone
25
Gender Gap
26
Registered OTC Total
Female 9% 22% 31%
Male 15% 35% 50%
Registered OTC Total
Female 0% 10% 10%
Male 1% 21% 22%
ALL Registered OTC Total
Female 5% 16% 21%
Male 11% 32% 43%
PHONE OWNERS NO PHONE
• Phone ownership triples (31% vs 10%) the likelihood a woman is an MFS user.
• The gender gap is narrower among phone owners, but a gap remains.
Education a Significant Factor
27
2% 5% 8%
24%16%
24%27%
31%
0%
10%
20%
30%
40%
50%
60%
have no education have only primaryeducation
have secondaryeducation
have highereducation
% Use in Each Education Level
Use through registered account Use unregistered
Education linked to
both more use &
more registered use
Deeper Dive Into Users/Non-users: Summary
8% unaware: Tend to come from more vulnerable groups
For other non-users: Awareness, proximity to agents, trust
are not barriers
MFS widely available and accessible, to nearly everyone
Owning a phone and higher education positively correlated
with use, but other demographics are not strongly correlated
Gender gap closes among those who own a phone, but a
gender gap remains
28
Airtime Purchases &
Advanced Financial Services29Photo: GMB Akash, 2011 CGAP Photo Contest
Airtime Purchase
28%
1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Registered users Unregistered/OTC users
% who have purchased airtime
30
Does Airtime Drive Registered Use?
31
0%
5%
10%
15%
20%
25%
30%
35%
Less than 6months ago
6 months - 1year ago
More than 1year ago
New users are
LESS likely to have
purchased airtime
Registered users:
Why did you start using MFS?
I had to receive money: 55%
I had to send money: 38%
Most start using to conduct
transfers.
% of registered users who have
purchased airtime
Unregistered
users
23%
Advanced services
include: Savings, credit,
insurance, paying bills,
receiving government
benefits, receiving
wages, business uses,
and paying for goods
and services
Advanced Financial Services
10%5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Registered users n=463 Unregistered/OTC users n=1,402
32
Use advanced services
Use only basic services
Super Users
Super users = registered account and least one advanced
service
2.5% of MFS users
1% of adults
Super users: Urban, men, above the poverty index,
higher education
Also: Young, 3X more likely to own a smartphone
(31% vs. 9%)
33
Airtime and Advanced Financial Services:
Summary
Using MFS to purchase airtime is a relatively new service;
primarily used by registered account owners.
There is little evidence to suggest airtime usage drives account
registration; most still register for sending/receiving.
Use of advanced financial services still low; only 1 in 10 are
registered users.
There is a small group of Super Users who tend to be men,
urban, younger, above the poverty index and more likely to own
a smartphone.
34
DBBL Mobile & bKash35Photo: Mohammed Khalid Rayhan, 2011 CGAP Photo Contest
DBBL & bKash
DBBL bKash
36
Market share
30% of Bangladeshi adults have used bKash, while 4%
have used DBBL’s mobile money service.
bKash has significantly more users in every
demographic category.
37
Active use and registered use
bKash users are more likely to be active account holders:
81% are active, compared with 67% of DBBL users.
DBBL users are more likely to be registered: 44% are
registered users, compared with 23% of bKash users.
38
Demographic differences
Among each service’s customers, percentage who are:
39
Women Rural
Below Progress
out of Poverty
Index
None or only
primary
education
Work in
Agriculture
bKash 35% 59% 70% 42% 22%
DBBL 30% 51% 66% 30% 15%
Geographic differences
Fewer bKash customers are concentrated in Dhaka:
36% vs. 43% for DBBL
There are other examples where the regional spread
vary. For example, more of bKash’s customers are in
Chittagong than DBBL’s (17% vs. 9%) and in Barishal
(9% vs. 4%).
40
Advancing financial inclusion to improve the lives of the poor
www.cgap.org 41