MFS: Livelihood Resources for Millions

Nazmul Haque Sazal of Shewrapara, Mirpur in the capital obtained a marketing degree from the North South University.

In 2020, he started working as a distributor of Trust Bank Limited's Mobile Financial Services (MFS) "Trust Axiata pay-tap".

Now 21 distributor services representatives (DSR) work under him, alongside 500 agents in three areas of the capital.

Nazmul Haque Sazal told The Business Standard that he applied to become a Tap distributor after remaining unemployed following his graduation.

"Now 21 DSRs are working under me, many of whom have completed graduation and post graduation from various colleges and universities. There are some who work part-time under me alongside continuing their studies."

He said he had 500 Tap agents working under him in Mirpur, Mohammadpur and Tejgaon industrial areas of the capital.

"Our job is to receive cash from agents and deposit e-money in their accounts and deposit that money in the respective bank. The DSRs do that."

Sazal said, "After paying the monthly salary and allowances of the employees of the organisation and other expenses, I have a profit of around Tk50,000 every month. The profit depends on the agent's transaction volume. Around 141% of transactions done by agents are credited to my organisation."

He said, "I don't worry about a job anymore. This is my fairly permanent employment."

In Chandpur, Sultan Mahmud worked as a DSR for two years in Nazmul Haque Sazal's company. He completed his BBA and MBA from Uttara University in the capital.

Sultan Mahmud told TBS, "It became very difficult to get a job after completing my studies amid Covid-19. Later, I came across this, N Haque Communications. Now I get a salary of around Tk20,000 per month. With which I will spend myself and my family."

According to Tap's office, they have 148 such distributors across the country. About 3,000 DSRs are working under them. There are lakhs of agents under RS distributors.

There are about 2,000 such distributors under 13 MFS institutions in the country, employing some 50,000 people as DSR.

According to the information provided by MFS providers last September, there are now about 1.5 lakh agents across the country of 13 MFS institutions, who provide mobile banking services directly to customers on a commission basis.

Each agent offers mobile banking services from distributors in their own stores or rental shops in their authorised areas. In all, more than 2 million new jobs are created in this sector

How employment is growing

The mobile banking is booming.

The mobile banking pioneer is Dutch-Bangla Bank's 'Rocket', which began in 2011. According to Rocket's official count, they now have around 239,000 agents across the country.

Ashraful Islam Ashik started working as an agent of Rocket in Dakumara market of Shibganj upazila of Bogura district in 2011. Now, along with Rocket, BKash and other MFSs are providing customer service as agents.

Ashraful Islam Ashik said, "After passing HSC in 2010, I tried and failed for government and private jobs. After learning about the Rocket, I rented a shop for Tk500 and started working as an agent with two mobile phones. All in all, about Tk20,000 was invested in the business.

"In the last 11 years, business has expanded a lot. In addition to the agent business, I also started selling accessories in my shop six years ago. One such remote area now earns Tk20,000-25,000 per month, with which I can run my family of six, including parents, two children and my wife."

There are six more mobile banking agent shops in that market. They are also doing various small businesses in the same shop besides mobile banking. Ashraful Islam Ashik said he is earning well now.

How business diversification is happening

Samiul Haque Sami, an MFS agent in Hajiganj upazila of Chandpur, has been working as a mobile banking agent since 2014 besides selling cosmetics. Over the period of time, his banking business has increased along with the expansion of cosmetics business.

He said "Now, two of the three employees are engaged in mobile banking services. I and another employee look after the cosmetics business."

According to a recent survey by BBS, mobile banking has expanded massively.

A marginal business that does mobile banking is contributing an average of Tk16,370 per month. Roughly speaking, mobile banking earns the same amount of money in commissions every month, apart from expenses. BBS got this picture by conducting a survey on 218 mobile banking outlets recently.

Amount of new employment

The mobile banking is now quite popular in the country for easy transactions. It is now considered a major sector.

But manpower is needed to keep the sector running.

Farid Ahmed, an MFS distributor of Kodda area of Sirajang, thinks that many people are getting new employment because of the second.

He is the local distributor of Bkash, Rocket and UPay. Some 45 DSRs work under him along with more than 2,000 agents.

Farid said it can be seen that many people from university or college are becoming mobile banking agents after completing their studies without getting any job with very little investment.

He said more than 70% of the number of distributors and agents for mobile banking have joined after remaining unemployed for a while. The remaining 30% also have small side businesses.

As such, new job resources have been created for around 10 lakh people out of the 1.5 lakh agents that are now present across the country.

Farid thinks mobile banking has played  a vital role in transforming the rural economy.