bKash leads carbon footprint reduction in financial sector

Going beyond national borders, climate change is considered one of the most critical global emergencies of the 21^st century that can only be tackled through comprehensive green transformations across industries. When it comes to the financial sector, financial technology (FinTech) companies are leading the global efforts to reduce carbon footprint, both within their own operations as well as customers' value chains.

The concept of green transformation combines a set of policies, strategies, and transparent practices to ensure economic, social, and environmental sustainability by enhancing energy efficiency, reducing carbon emissions, promoting sustainable use of natural resources, minimising environmental degradation, and last but not the least, increasing societal participation in the process.

In Bangladesh, Mobile Financial Service (MFS) provider bKash, characterised as a FinTech, takes the lead in reducing carbon footprint in the financial sector by revolutionising the cashless journey. 

Since its inception, bKash emphasised on financial inclusion of the unbanked and underbanked population in the country by ensuring their access to essential financial services through the simplest mobile phone from the comfort of home. 

Over the years, bKash has contributed to a behavioural shift among customers towards a cashless lifestyle by providing customer-centric innovative financial products that are secure, convenient and easy to use. 

Simultaneously, the Bangladeshi unicorn has also been developing an ecosystem for digital transactions through collaboration with banks, financial institutions, utility services providers, telecom operators, government service providers, etc. that also stimulates overall green transformation of the financial sector.

A decade ago, it was normal for the majority of the people to travel long distances spending time and money, particularly in the countryside, to avail a simple financial transaction, for say, paying utility bills. 

However, this is no longer the case, because people now can pay bills through their bKash account in seconds without even setting their foot outside home. Like this, the leading MFS provider, in addition to its own products, has introduced financial tools and services of different banks, financial institutions and other service providers in its platform, enabling the customers to embrace a broader digital lifestyle. 

Aligned with the global agenda of net zero emissions, such a lifestyle greatly cuts transportation-related emissions and the use of paper, mitigating carbon footprint in customers' daily life as well as service providers' operations, as they need less physical infrastructure to provide services.

bKash has introduced financial products, such as 'digital loan', 'pay later', weekly and monthly DPS in collaboration with traditional banks, which customers can avail of in a paperless manner. 

Paperless transactions are faster, cheaper, accurate and transparent which at the same time enable customers to take part in environment conservation. Instead of paper receipts, bKash issues digital receipts for every transaction. 

To make the concept of digital payments sustainable, bKash has developed a network of over 850,000 merchant points across the country where businesses can accept payments from customers through paperless and contactless QR code scanning. 

By bringing convenience into everyday life for the customer base of over 75 million, bKash has become a part of every family in Bangladesh and the brand name has become a verb as people simply say 'bKash me' instead of sending money digitally.

FinTech companies are emerging as powerful allies in the fight against climate change by practising green transformation in daily operations. 

By providing innovative financial solutions, promoting sustainable consumption, and improving the efficiency of financial systems, companies like bKash can contribute more to a sustainable and environment-friendly future.