Stakeholders call for next-generation technology to transform remittance services

Expatriates continue to prioritise low-cost, secure and instant remittance transfers to their families in Bangladesh. To meet this demand, industry players must embrace next-generation technologies and adopt a coordinated approach across the entire remittance ecosystem, stakeholders said at a recent workshop.

The event, titled "The Changing Landscape and Emerging Potential of Remittance in Bangladesh", was organised by bKash Limited, the country's largest mobile financial service provider, according to a press release.

Speakers observed that greater satisfaction among senders would boost remittance flows through formal channels, and thus urged swift policy interventions to keep pace with global practices.

The workshop brought together senior officials from the banks and non-bank financial institutions, mobile financial service (MFS) providers, along representatives of leading international money transfer operators (MTOs).

In his keynote presentation, Zahidul Ahasan, head of remittance at bKash, highlighted the growth, potential and challenges of the sector.

Ali Ahmmed, chief commercial officer at bKash, underscored the importance of collaboration among all institutions within the remittance ecosystem.

"This is the right time for investing in technology-based infrastructure that will transform the remittance sending experience," he said.

International MTO representatives noted that the sector is becoming increasingly competitive, driven by app-based services, where customer experience is emerging as the defining factor.

They stressed that expanding instant services requires data-driven decision-making.

Given that expatriates remit funds largely for essential needs such as housing, investment and children's futures, stakeholders also emphasised the need for secure savings schemes and access to credit.

Bank representatives recalled that remittance once meant "cash over the counter" with long processing delays. Today, thanks to various initiatives, money can be sent instantly to mobile financial service platforms such as bKash. However, they agreed that more needs to be done to widen access and ensure seamless, fast and secure transactions.

Currently, over 15 million expatriates remit their income to Bangladesh annually from 176 countries. While expatriate numbers are highest in Cumilla, Chattogram, Brahmanbaria, Feni and Noakhali, contributions now come from nearly every district.

The growing adoption of digital platforms by local banks, MFS providers and MTOs has already made the remittance process faster, simpler and more reliable.