s

A comparative analysis of the factors

influencing consumer preference of Mobile
Financial Services (MFS): a study of the top
three MFS in Bangladesh
 RESEARCH REPORT
A comparative analysis of the factors
influencing consumer preference of Mobile Financial
Services (MFS): a study of the top three MFS in
Bangladesh

Research Methods R301

Submitted to Submitted by

Rezwanul Haque Khan Team 9

Associate Professor RH 72 Urbana Raquib

Rodosee

ZR 82 Arman Bin Islam

RH 94 Nafial
Shafayeen Section
B

BBA-27

Institute of Business Administration

University of Dhaka

Submitted on
5 December 2021
 3

Letter of Transmittal
5 December 2021

Rezwanul Haque Khan

Associate Professor

Institute of Business Administration

University of Dhaka

Subject: Submission of Research Report “A comparative analysis of the factors

influencing consumer preference of Mobile Financial Services (MFS): A study of the top
three MFS in Bangladesh”

Sir,

The following report has been formulated as instructed by you for the partial fulfillment of
credit for our Research Methods (R301) course.

The report has been written according to the given instructions with a thorough and diligent
research. We appreciate the opportunity of doing this report under your supervision and
guidance. We sincerely hope we have been able to reach the benchmark you expected and are
eagerly waiting for your feedback on this report.

Please note that this report has been prepared under your supervision. Under no
circumstances will this report be produced for any other course. No part of this report will be
shared or republished without your authorization.

Sincerely,

RH-72 Urbana Raquib Rodosee

ZR-82 Arman Bin Islam

RH-94 Nafial Shafayeen

BBA-27

Institute of Business Administration

University of Dhaka
 4

Acknowledgement

We would like to express our utmost gratitude towards our course instructor, Rezwanul
Haque Khan, for assigning us with such an insightful and creative task. Our sincere thanks
also go to Sayeed Nasir- General Manager of bKash, Aunik Barua, Senior Manager of Nagad
and Manna Deb, Distributive Manager of Rocket, for making time out of his busy schedule to
give us an insightful interview and for helping us out with our research work.

This term paper was the exact representation of what the course content of ‘Research
Methods’ should look like. Starting from taking online surveys to interviewing significant
business personalities of bKash, Nagad and Rocket, the whole experience was a learning
curve for us. The next step of collecting data and writing about the different factors
influencing consumer choice of one MFS over the other provides a holistic dimension for us.
Overall, this report was an equally challenging and enlightening experience for us. Therefore,
we cordially thank our course instructor for this opportunity and look forward to working on
more of such challenging projects.
 5

Executive Summary
With the passage of time, users are abandoning cash-based transactions in favor of cashless
transactions via Mobile Financial Services. According to Bangladesh Bank, bKash is the
country's largest e-banking provider, having a large share of the market, followed by Rocket
and Nagad. Understanding the elements that influence the decision to use one mobile banking
service over another is crucial. In recent years, these top three mobile financial service
providers have also attempted to keep their customers by assisting them in finding better
services. Consumers face a challenge in choosing one Mobile Financial Service to use over
another. The paper aims to gauge out the factors that influence a customer’s usage of Mobile
Financial Service over another.

The purpose of this paper is to collect data on the current state of the MFS industry, a holistic
picture of the competitive landscape, factors that may sway customers from one service to
another, and the features that each MFS provides to customers, as well as to compare the
degree to which each MFS has managed to cater to those specific factors.

We have analyzed the underlying ideas of the Servqual model to identify the elements that
will determine the viability of our research. A mix of brand name, perceived risk, such as
performance risk, security or privacy risk, time, social and financial risk, ease of use or
convenience, cost factors, banking policies, user-friendliness, smartphone app interface,
individual dispositions, such as job position, social influence, and finally the impact of
COVID- 19 are the factors we will probably touch with the aid of the model.

We have conducted our research under the premise of pragmatic research and use an
inductive approach to frame it in accordance with grounded theory. We've also performed the
comparison in the context of a cross-sectional time horizon to see how each aspect has
influenced customers. Because the study will provide a comparative analysis, we used both
quantitative and qualitative methods to create a clear picture of the industry's status. The
study is done within the boundaries of Bangladesh, with Bkash, Rocket, and Nagad as the
primary emphasis. To analyze our data and come to a distinct conclusion, we have employed
 6

online surveys, interviews, and cross-case mixed-method cases. This paper benefits both
parties (MFS and Customers), as it allows MFS to assess their own standing in the minds of
customers and determine how to better meet their needs. Consumers will be more aware of
the benefits that each MFS has to offer, allowing them to make greater use of it in their daily
lives.

We have identified some gaps in the perception of influencing factors between the companies
and customers. However, some of the identified gaps that have come to light indicate that the
gaps exist because the company is targeting the mass instead of a niche, and as such the
customer perception could be skewed as our sample is not reflective of the complete target
market of the MFS.

We have also tried to rank the factors of influence for the customers. The ranking shows that
the most influencing factor is the network of the MFS. This includes social perception, peers
and availability. Cost is another important factor. What we found interestingly is that
although people mention the security issues as frustrating points for MFS, they don’t base
their decision of adoption or usage on the perceived or actual security.
 7

Table of Contents
1. Introduction 9
1.1 Rational of the Study 9
1.2 Aims and Objectives 10
1.3 Methodology 10
1.3.1 Research Setting 11
1.3.2 Data Collection 12
1.4 Limitations 13
2. Literature Review 13
2.1 Background 13
2.2 MFS Applications 14
2.3 Factors of influence 15
2.3.1 Underpinning Theories 15
2.3.2 Application of Factors 16
3. Industry Overview 17
3.1 MFS in Bangladesh 17
3.2 Market Share of MFS 19
3.3 Features and Services offered by bKash, Nagad and Rocket 20
4. Findings 21
4.1 Survey Results 22
4.1.1 Usage ratio of MFS 22
4.1.2 Consumer’s perception of the MFS 26
4.1.3 Consumer perception of the Advertisements of MFS 27
4.2 Interview Analysis 28
4.3 Data Analysis 30
4.3.1. Social Influence 30
4.3.2. Brand & Popularity 31
4.3.3. Availability & Acceptance 31
4.3.4. Transaction Costs 32
4.3.5. Security 32
4.3.6. Marketing Promotions 33
4.4 Gap Analysis 33
5. Conceptual Framework: Hierarchy of Factors 36
6. Conclusion 37
Reference 37
Appendix A 41
 8

Codes in Interviews 41
Appendix B 42
The consent form for the interview 42
Questionnaire 43

Table of Figures
Figure 1: Top three MFS in Bangladesh 9
Figure 2: Research Onion 10
Figure 3: bKash app interface redesigned 15
Figure 4: Nagad's recent change in campaigns to increase their app installs and easy account
creation 15
Figure 5: Rocket offers customized benefits to both old and new customers 15
Figure 7: The SERVQUAL Model 16
Figure 6: Factors to technological adoption 16
Figure 8: Market Share of MFS Accounts Opened in 2020 | Source: The Daily Star 19
Figure 9: Percentage of MFS users according to the survey 22
Figure 10: Factors that influenced the adoption and use of bKash among respondents 23
Figure 11: Pain points of bKash according to the respondents 23
Figure 12: Factors that influenced the adoption and usage of Nagad among respondents 24
Figure 13: Pain points for customers of Nagad according to Respondents 24
Figure 14: Factors that influenced the adoption and usage of Rocket among respondents 25
Figure 15: Pain points of Rocket according to Respondents 25
Figure 16: Social influence in the adoption of MFS 30
Figure 17: What influences people to choose one MFS over the other? 36

Tables
Table 1: Transactions via MFS in 2021 18
Table 2: Features of bKash, Rocket, and Nagad 20
Table 3: Consumer perception of the MFS according to the survey 26
Table 4: Perception of advertisements according to the survey 27
Table 5: Perception of MFS among customers and company according to the interviews 28
Table 6: Transaction Charges of the MFS 32
Table 7: Gap in the perception of factors between customers and companies 33
 9

1. Introduction
1.1 Rational of the Study

As Bangladesh moves forward into a cashless

transaction, mobile financial services are by far
the most likely option. Mobile financial
services are becoming a progressively integral
aspect of daily living (Rasheduzzaman, Palash
& Rahman, 2021). People have become
increasingly reliant on financial technology
services in recent years. The public is very
accustomed to this service, which has evolved
into an inherent part of everyday life (Ngulube,
2021). There are numerous people who use this
system, and their degree of expectancy
continues to grow daily (Khatun, Mitra &
Sarkar 2021). Due to the surge in consumption,
Bangladesh has also produced a plethora of
mobile financial service operators (Lightcastle Wing, 2020). Consumer satisfaction is now
often seen as a must for profitability in today’s fiercely competitive corporate world (Shaikha,
2019).

In a general sense, we've observed that individuals are accustomed to singing about bKash,
Nagad, and Rocket (Mahmud, 2021). Customers are currently befuddled over which one of
these top 3 mobile financial services to employ (Mamun, 2021). It is critical to understand the
factors that influence the decision to utilize one mobile financial service over another. These
top 3 mobile financial service operators have also been attempting to retain their consumers
and help them find improved services in recent years. Therefore, this paper presents a
comparative examination of the many aspects impacting consumers' choice of bKash, Nagad,
and Rocket and the options rendered by them.
 10

1.2 Aims and Objectives

The aim of this study is to determine the elements that have influenced consumer behavior
for the use of various mobile financial services by the citizens of Bangladesh, and to identify
whether there is any gap in the perception of the factors between the consumers and the
companies. To accomplish this wide goal, we have identified the following goals:

1. To give an overview of the current state of mobile financial services in Bangladesh.

2. To deliver the current competitive landscape of the mobile financial service industry in
Bangladesh.

3. To gain an understanding of the features and services rendered by bKash, Nagad, and
Rocket.

4. To ascertain the factors that influence users' preferences for one mobile financial service
over the others in Bangladesh.

1.3 Methodology
Our approach to the
study was pragmatic
since we wanted to find
out what factors impact a
customer's preference for
mobile financial services.
This approach, which
serves as a reason for
formal study design as
well as a more grounded
approach to research,
attempts to gather and
provide socially relevant knowledge (Feilzer, 2010). The mixed method approach enables and
 11

directs to employ a number of ways to solve research issues that cannot be answered with a
single method as the research searches for variables and the degree of each component that
affects the customers in choosing mobile financial services (Doyle L, 2009). It has enabled us
to approach consumers and comprehend their point of view, as well as the weightage of
consumers with similar opinions, using a pragmatic approach (Taguchi, 2018). The paper
illustrates what consumers like about mobile financial services and how they go about
selecting the correct one for them.
We have taken the inductive approach as Inductive approaches entail generating theories
from research, rather than starting a project with a theory as a foundation (M. N. K. Saunders
et al., 2021). Our research objective was to identify the underlying factors that influence the
consumer practices regarding the usage of one MFS over the others, and the factors that drive
the consumer preference. As well as whether the factors perceived by the customers and the
companies are the same or there is any difference in perception of the factors. In our
approach, we did not have a basis in any existing theoretical framework and instead are using
observation and interpretation to reach a satisfactory conclusion.
We started by observing the current practices of MFS users, from the observations we have
identified several patterns. Once we determined the patterns, the further analysis was
subjective in nature as we tried to provide a framework for consumer preference. Our
framework here is a a broad generalization of the consumer preference of MFS and is open to
multiple interpretations.
As we try to find a pattern in the broader consumer’s preference of MFS, we have created a
general framework of preference, and the framework is grounded by the actions and views of
the participants. We have interpreted the choices of the consumers and based our analysis on
their perspectives and actions.

1.3.1 Research Setting

The study focuses on Bangladesh's three most renowned financial services (bKash, Nagad,
Rocket) (Parvez, 2015). In emerging regions, only 1% of daily payments are made via digital
methods, but in rich countries, the figure is over 60% (Himel S. A., 2021). Although the
number of registered MFS users in Bangladesh is continuously rising, industry insiders argue
that the number of inactive users is still high due to a lack of user trust, network challenges,
 12

users' fear of fraud, lack of interoperability, and a lack of digital literacy, to name a few
(Yesmin, 2019). As a result, marketers are still unsure of their clients' attitudes and usage
intentions. As a result, it's essential to identify the aspects that influence a customer's
preference and exhibit them in a comparable manner to provide a more accurate picture.
The survey was conducted on Bangladeshis to determine how they have embraced emerging
technologies and which MFS service (bKash, Rocket, Nagad) they are most familiar with and
use at the time. We have learned which MFS is more popular among consumers as a result of
this study, which does not go into great detail at first. From the research, we were able to
determine which MFS has captured the most share of the market. Following that, we also
contacted bKash, Nagad, Rocket to obtain their perspectives on how they intend to serve
customers.

1.3.2 Data Collection

As we have used the convergent parallel mixed methods approach and gathering both
quantitative and qualitative data, we conducted both the surveys and interviews almost
simultaneously. (Creswell, 2021) As well as we collected the data at roughly the same time,
we converged our findings to save time and then integrate the information to garner overall
results.
We performed an online survey utilizing Google Forms in the first phase of the study, with
multiple-choice options, checkboxes, scales, grids, text, and other alternatives to pick from
while responding (N.S. Harinarayana, 2016). Each question focused on how each Mobile
Financial Service was valued by customers and the brand image that was established for
them. Additionally, it was used to obtain the benefits and drawbacks of a certain service as
well as their reasons for utilizing it. The massive data shows us just how and to what degree
each MFS has captured the market.
Afterward, we approached the customers for a more detailed interview. Although online
surveys enable us to capture mass response, often important data is missed out and can often
be unconcealed when an interviewer asks questions face to face (Williamson, 2013). Face-to-
face interviews have traditionally been the most common interview technique used in
qualitative research (Opdenakker, 2006), but given the current scenario, we've used Zoom
and Google Meets to accommodate the largest sample size possible. In order to collect the
 13

data from Mobile Financial Services’ representatives and brands that collaborated with them,
we deduced that face-to face interviews will be the best for our cause. However, in the case
where the interviewee cannot allot the meeting time, we have chosen email intensive
interviews as alternatives. Email intensive interviews arguably has been portrayed to work
best when opting for mixed methods (Pattison, 2015). From here, we got more information
from MFS representatives about how they evaluate the variables that will draw most
customers to their services and how they cater to those specific demands. This research is
based on both primary and secondary sources. We conducted an online survey utilizing
Google forms to obtain primary data and received 112 replies. Furthermore, we have also
produced a questionnaire survey and held meetings of 14 customers in order to know about
the diverse perspectives of using MFS. Accordingly, we have questioned business executives
of bKash, Nagad and Rocket, namely Sayeed Nasir- General Manager of bKash, Aunik
Barua, Senior Manager of Nagad and Manna Deb, Distributive Manager of Rocket.

For some further research, we have gathered secondary data from the numerous online
databases like from Bangladesh Bank, publications and journals like SAGE publications,
Lightcastle Analysis Wing, South Asian Journal of Marketing etc.

1.4 Limitations

Owing to Covid-19 and situational factors, we were able to obtain information from a limited
sample size. People were considerably hesitant to do the questionnaire and survey since the
document was too lengthy for them and didn't have much time for this. Some of the gathered
information also differed from diverse types of people. Furthermore, while gathering
information, the representatives of the companies also did not give many details to us related
to privacy difficulties.
 14

2. Literature Review
2.1 Background

Mobile Financial Services (MFS) alludes to electronic cash (e-cash) administrations given
against a specific portable or cell number of a customer (named as mobile account), where
the record of transactions is put away on the electronic general ledger. These administrations
can be drawn down through explicit installment directions to be given from the bearer's cell
phone or through alternative computerized interaction or device by guaranteeing the
authenticity of the exchange. Be that as it may, dissimilar to e-cash items, 'cash-in' and
'cash-out' and different administrations as allowed by Bangladesh Bank (BB) at specialist
areas are taken into consideration MFS accounts. According to Siddique (2014) “Financial
services have been referred as facilities such as saving accounts, checking accounts,
confirming, leasing, and money transfer, provided generally by banks, credit unions, and
finance companies, whereas the concept of “financial innovation” can be defined as making
and promoting new financial products and services, developing new processes to facilitate
financial activities, to interact with customers and to design new structures for financial
institutions.”

The adoption of MFS in Bangladesh was a progressive move for stepping into the emerging
markets from a frontier market. MFS consists of a broad range of financial services that are
accessed and delivered through digital channels, such as payments, credit, savings,
remittances, and insurance (Lightcastle Analytics Wing, 2019).

2.2 MFS Applications

With a continuous rise in the usage of MFS, there has been a rise in research as well.
However, there are a few examinations deciding on the components that influence the
reception of Mobile Financial Services (MFS) and the user perspective related with it, most
of these investigations underline more on the populace having satisfactory admittance to
different existing channels of banking and monetary administrations. Different customer
 15

segment factors were found to affect the reception of MFS. In one review, age and education
were found to impact the utilization of the cell phone for banking administrations (Suoranta,
2003), while sex and age were observed to be the fundamental differentiators in another
review (Dass and Pal, 2010).

In this paper, we have tried to outline the basic factors influencing the users’ adoption of
MFS, and how the factors rank in weightage in the context of Bangladesh.

2.3 Factors of influence

2.3.1 Underpinning Theories

Insightful examination on tech-based administrations has

widened the investigation of Self Congruence to think about
web-based services as well. The expressions
"self-congruence (SC)," "self-perception," "self-congruity,"
and "social influence" are utilized reciprocally to express the
idea of self-image influenced by brand usage (Hepola et al.,
2016). The idea of SC broadly is viewed as significant for
understanding the connection between clients, brands, and
brand results to increase ease of use SC, according to Japutra,
Ekinci, and Simkin (2017), reflects customers' judgments of
the match between their actual or ideal self-concept and the
personality or image of brands or offerings.

As a result, Malär, Krohmer, Hoyer, &

Nyffenegger (2011) discovered that it
leads to a stronger emotional bond with
the brand. SC exists when a consumer's
self-concept matches the stereotype of a
 16

typical user of a brand (brand-user image or brand personality) (Cowart, Fox, & Wilson,
2008; Kressman et al., 2006, Sirgy et al., 1997). Brand image has been seen to affect the
usage of various commodities, as such this is a theory we examine in the report.

Risk impacts customers' confidence in

their intentions and behavior in the context
of technological acceptance, and this
uncertainty intensifies when the
probabilities of outcomes are unclear (Im,
Yongbeom, & Han, 2008). The three factors
of PR (security, privacy, and monetary risk)
that influence m-payment adoption were
examined by Thakur and Srivastava (2014). Although the theory here focuses on the
technology adoption as opposed to the preference of MFS, in our research, we use the
perceived risks of clients in their perception of the services by bKash, Nagad, and Rocket.

2.3.2 Application of Factors

(Chigori et al., 2020) The study

named 'Factors Influencing the Use
of Mobile Financial Services:
Evidence from Taiwan' authored
by Feng Shang Wu and Yung-Shen
Yen, outlines the procedure of
mobile banking in a prestigious
bank in Taiwan. This investigation
discovered that apparent ease of
use and individual disposition
assume the main factors in
deciding MFS use (Wu and Yen,
2014). Furthering on the findings of Wu and Yen, Hossain and Hossain (2015) directed an
 17

exploration on clients of mobile financial services in Dhaka city of Bangladesh. Their study
expected to examine the connections of factors viable into two unique advances, namely
between customer loyalty (activity faithfulness) with nature of services, cost of exchange,
segment environment, and lastly
confided in the mobile financial
area of Bangladesh. In this review,
activity dependability is utilized to
acquire an exhaustive examination
of client dedication design in the
versatile financial area. Segment
climate and activity reliability were
the new two factors included in this model.

Most factors (dependability, responsiveness, confirmation, empathy, and tangibles) of service

quality show a positive relationship to the clients’ satisfaction. Results showed an
exceptionally huge positive connection between segment environment and client activity
unwaveringly and albeit not profoundly huge, exchanging expenses and trust additionally
animates clients' activity and dedication. The Servqual Model is based on the reliability,
responsiveness, assurance, empathy, tangibles of the various mobile financial services and
they tie in the factors with the adoption of MFS in Bangladesh. The core concept of these
models takes into account the income level, age, gender, occupation, and other aspects of the
service itself and tries to identify the technology adoption likeliness among the Bangladeshi
populace living in Dhaka.

This model advances our study by giving us a preconceived notion of adoption to investigate.
We plan to look into the factors of the Servqual model to identify the feasibility of the model
in our research. (Gharaibeh et al., 2018) In addition to the factors used in this model, we wish
to expand on other possible factors that we might come upon in our interviews and surveys.
The factors we are anticipating are a mix of brand name, perceived risk including
performance risk, security or privacy risk, time, social and financial risk, ease of use or
convenience, cost factors, banking policies, user-friendliness, smartphone app interface,
 18

individual dispositions including job position, social influence, and finally the impact of
COVID-19.

3. Industry Overview
3.1 MFS in Bangladesh

Among the few industries that rapidly increased in Bangladesh over the recent decades
associated with the economic development is the financial industry (Anik & Kabir, 2021).
Rising number of smartphone subscribers, modernization of transactions and the extension of
telecom carriers’ network throughout all of Bangladesh have created the prospects of mobile
financial services firms (Alam, 2021). Following 2011, Bangladesh's mobile financial service
industry has grown and picked up speed in 2019 (Himel, 2021). Over 50 million people use
15 banks' digital financial services. Bangladesh Bank reports that bKash is the country's
biggest e- banking cross-case provider, with a significant chunk of the market, trailed by
Rocket and Nagad. Other than these, SureCash, Upay, MyCash are some other MFS that have
developed recently. Presently, 407.01 lac active mobile financial service accounts are
operational till August 2021; transactions of BDT 62230.24 crore occurred, which is 6.3
percent lower than in June 2021 (BB, 2021).

Table 1: Transactions via MFS in 2021

Serial Description Amount in July, Amount in % Change (July

no. 2021 August, 2021 2021 to August
2021)
1 No. of Banks 15 13 -13.3%
currently providing
the Services
2 No. of agents 1141743 1161634 1.7%
3 No. of registered 1027.15 1043.64 1.6%
clients in Lac
 19

4 No. of active 411.58 407.01 -1.1%

accounts in Lac*
5 No. of total 326375159.00 328974694.00 0.8%
transaction
6 Total transaction in 66387.45 62230.24 -6.3%
taka (in crore BDT)
7 No. of daily 10528231.00 10612087.00 0.8%
average transaction
8 Average daily 2141.53 2007.43 -6.3%
transaction (in
crore BDT)
9 Inward Remittance Amount (in crore Amount (in crore
BDT) BDT)
a Inward Remittance 282.68 333.29 17.9%
b Cash In transaction 17935.45 18669.79 4.1%
c Cash Out 17360.26 14992.93 -13.6%
Transaction
d P2P transaction 20534.19 19445.37 -5.3%
e Salary 3403.33 1903.44 -44.1%
Disbursement
(B2P)
f Utility Bill 992.97 1323.74 33.3%
Payment (P2B)
g Merchant Payment 3096.79 3465.93 11.9%
h Government 541.21 13.76 -97.5%
Payment
i Others 2240.58 2081.98 -7.1%
Source: Bangladesh Bank, 2021
 20

3.2 Market Share of MFS

In Bangladesh, digital financial service

adoption has been quickly expanding.
Due to the surge in consumption, there
have been a plethora of service suppliers
(Lightcastle Wing, 2020). Nagad, bKash,
and Rocket are three of Bangladesh's
leading mobile bank operators. The
mobile financial service sector has
become so intense that the operators have
been changing their promotional
techniques on a regular basis, capturing headlines in newspapers (Khan & Chaipoopirutana,
2020).
Bangladesh Bank reports that bKash is the country's biggest e- banking cross-case provider,
with a significant chunk of the market, trailed by Rocket and Nagad. Over the past decade,
bKash used to represent a lion’s portion and lead the MFS sector (Star Business Report,
2021). Only with arrival of Nagad, the monopoly role comes to a halt and rivalry began to
emerge (Mishuk, 2021). Along with bKash, Nagad and Rocket are also getting more involved
and are having a massive consumer base. As per the research of Daily Star 2020, bKash once
had 44.63 percent market, Nagad of 25.64 percent and Rocket of 29.73 share of the market in
the business.
 21

3.3 Features and Services offered by bKash, Nagad and Rocket

Table 2: Features of bKash, Rocket, and Nagad

Features & bKash Nagad Rocket

Services
Starting of - Launched in 2011 - Launched in 2018 - Launched in 2012
journey - Backed up by Brac - Backed up by - Backed up by DBBL
Bank Bangladesh Post Office
(BPO)
Services to - cash in, cash out, bill - cash in, cash out, bill - ATM money
customers payments, mobile payments, mobile withdrawal, cash
recharge, remittance, recharge, remittance, deposit, cash
donations, movie tickets, donations, movie withdrawal, person to
savings etc. tickets, savings, person transfer, salary
e-commerce payment disbursement, merchant
gateway etc. payment etc.
USSD Code - Dial *247# - Dial *167# - Dial *322#

Transaction - Cash in daily Tk 30000 - Cash in daily Tk - Cash in daily Tk

Limits and monthly Tk 200000 250,000 and monthly 30000 and monthly Tk
maximum Tk500,000 maximum 200000 maximum
- Cash out daily Tk - Cash out daily Tk - Cash out daily Tk
25000 and monthly Tk 250,000 and monthly 25000 and monthly Tk
150000 maximum Tk500,000 maximum 150000 maximum
- Person can hold - Person can hold
maximum of Tk 300000 maximum of Tk
in his own account. 300000 in his own
account.
 22

Transaction - Free of cost for cash in - Free of cost for cash - Free of cost for cash
Charges - Cash out Tk 18.5 per in in
1000 - Cash out Tk 9.99 per - Cash out Tk 18 per
- Cash out Tk 14.90 per 1000 1000
1000 from favorite agent - Tk 4 deducted per - Cash out Tk 9 per
- Tk 5 deducted per transaction for sending 1000 from DBBL
transaction for sending money branch.
money - Tk 5 deducted per
transaction for sending
money
Foreign - Tk 122500 per day and -Maximum $ 1000 - Not available
Remittance Tk 441000 monthly
to mobile
accounts

Interest on - 1.4% for Tk 5000 and - 5% for Tk 5000 and - Not available
Balance 4% for Tk 50000 7.5% for Tk 50000

4. Findings
To carry out this study, a pragmatic research technique was used: information was
obtained through a standardized questionnaire via Google forms, and interviews were held
with both customers and officials from the businesses. We have acquired of roughly 112
replies via online polls; took personal interviews of 14 consumers and employees of bKash,
Nagad and Rocket. As MFS are largely used by the youths, majority of the responders are
ranged in age around 20 and 30 years old. The questionnaire was focused on the literature
study that aimed to identify the influences on the customer perception of the use of one MFS
over the others. The findings are presented as below:
 23

4.1 Survey Results

4.1.1 Usage ratio of MFS
BKash, as any other, has put an attempt to
remain at the forefront of customers'
minds, followed by Nagad and Rocket.
Plenty of the interviewees often use 2 of
mobile money services. Out of 112
respondents, 87 has admitted utilizing
bKash, 25 of using Nagad, 20 of using
Rocket and 4 have none of these.

4.1.1.1 bKash
4.1.1.1.1 Factors influenced to use bKash
Among the most crucial reasons in making individuals to utilize bKash is its accessibility.
bKash seems to be everywhere! It does have a widespread popularity (Rayed & Biswas,
2021). There is a significant amount of bKash points, acceptable anywhere for operations
(Ellis, 2018). 76 participants had been affected by accessibility issues that caused them to
utilize bKash. Apart from this, 42 responders have been affected by culture influences- both
friends and relatives. Its vast quantity of marketing initiatives and brand popularity also
inspired 34 and 42 others to use BKash.
 24

4.1.1.1.2 Negativism of bKash

One of its most concerning aspects for bKash is the transaction fees. Customers have to spend
a high figure for check out expenses (Haroon, 2021). Furthermore, a cutoff cost of TK 5 per
each trade is also angering many customers (TBS Report, 2021). Nearly 63 and 42
individuals have raised this concern. There's also been an upsurge in the frequency of scam

calls for bKash members where 27 of them has consented to it.

4.1.1.2 Nagad
4.1.1.2.1 Factors influenced to use Nagad
Nagad, which began operations in 2019, already has a large customer base and has surpassed
Rocket (Bhattacharjee, 2021). The prime causes Nagad was capable of attracting a big
 25

following were its inexpensive cash out costs, settlement of Covid-19 test fee and the
government subsidies. Of the 28 responders, 24 of them have confirmed that they are utilising

Nagad owing to low cash out fees, 18 of them for the accessibility of Covid-19 test charge
payments and 19 of them must use for collecting government paychecks.

4.1.1.2.2 Negativism of Nagad

Nagad is not approved all over. While it has now a broad accessibility areas, it is not

recognized in many of the operations as in ecommerce transactions (Shabuj, Jahid & Hasan,
2021). 21 of the participants have reacted to this topic. Additional detest issue is the sketchy
business activities from Sulaiman Sukhon wherein 17 of the participants used to hate him.
 26

4.1.1.3 Rocket
4.1.1.3.1 Factors influenced to use Rocket
Rocket has been among the oldest MFS operators in Bangladesh (Khatun, Mitra & Sarker,
2021). Although it has not achieved significant prominence, many individuals are still
utilizing this for their daily transactions. 18 of the participants indicate that they are utilizing
rocket through the interface of DBBL and 15 of them believe that Rocket is by far the most

protected the only one MFS to have the availability of ATMs.

4.1.1.3.2 Negativism of Rocket

Remarkably similar to Nagad, Rocket is also not obtainable and approved all throughout

Bangladesh for transaction processing and 16 of the interviewees have called out this
 27

concern. Furthermore, 15 of the participants are also not content with the functionalities and
requires to be updated regularly

4.1.2 Consumer’s perception of the MFS

Table 3: Consumer perception of the MFS according to the survey

Excellent Good Average Bad Worst

bKash 20% 58% 18% 3% 1%
Security
Nagad 10% 70% 13% 4% 3%
Level
Rocket 36% 43% 21% - -
Affordability bKash 4% 17% 54% 14% 11%
of cash out Nagad 47% 33% 20% - -
charges Rocket 7% 39% 54% - -
bKash 58% 24% 18% - -
Availability
Nagad 7% 30% 60% 3% -
of points
Rocket 4% 39% 50% 7% -

To understand more about customer attitude of each of the MFS, we have focused three
elements here: security level, pricing of cash out costs and the availability of cash out points.

1. Security level: In contrast to the findings, Rocket is among the least risky and most
protected MFS amongst users. 36% excellence and 43% good are an impressive rate
especially in contrast to bKash and Nagad. Some main determinants of the customer getting
the security feature high in Rocket are that it enables people to obtain access to banking
services and ATM facilities where they can trade a huge quantity of money securely (Khatun,
Mitra & Sarkar, 2021).

2. Affordability of cash out charges: In respect to the cash out costs, customers have higher
priority in Nagad which exhibits a 47 percent excellent and 33 percent good ratio. Users are
 28

unsatisfied with excessive cash out and cash in costs of bKash and thus, are switching to
Nagad and have strong regard for this.

3. Availability Points: Consumers are heavily impacted in bKash in regards of number of

locations for cash in and cash out operations. bKash is discovered and approved anywhere
and there is availability of cash out points. The outcome also reveals the very same evidence:
58 percent excellent and 24 percent good which is greater than Nagad and Rocket.

4.1.3 Consumer perception of the Advertisements of MFS

Table 4: Perception of advertisements according to the survey

True Neutral False

The ad is bKash 14% 68% 18%
beneficial to Nagad 7% 49% 44%
me Rocket 48% 49% 3%
I trust the bKash 6% 44% 50%
brand more Nagad 2% 40% 58%
than before Rocket 2% 53% 45%
I can relate to bKash 16% 47% 37%
the Nagad 8% 41% 51%
information in
Rocket 3% 77% 20%
the ad
I feel the ad bKash 58% 24% 18%
was Nagad 48% 43% 9%
unnecessary Rocket 23% 60% 17%

BKash: As the market leader, bKash has been making significant investments in marketing
activities, trailed by Nagad and Rocket (Mollick, 2021). Yet, users reacted that the prevailing
ad of bKash about the cash out fees is more probable to be redundant where 58% has
concurred to the truth. Moreover, just 14 percent concurred to the concept that this
commercial is advantageous to them and hence, not of a benefit for the customers.
 29

Nagad: Nagad’s proportion is much worse than bKash and Rocket. Users have little to
respect the brand and 48 percent respondents think that this ad is likewise unneeded.

Rocket: Customers view regarding rocket is different in comparison to Nagad and bKash.
Only 23 percent of participants have deemed their ad superfluous, and 48 percent have said to
have been helpful to them.

4.2 Interview Analysis

The major objective of the paper is to determine the elements that impacted the customers for
using MFS and to discover a gap between both the perception of customers and the
organization. In order to acquire more information, we have held meetings with both the
consumers and the officials of the businesses. We gathered interviews from 14 customers
who are users of the different MFS such bKash, Nagad and Rocket. The findings are given as
below:

Table 5: Perception of MFS among customers and company according to the interviews

Organizations Interview Details

Among the 14 respondents, 9 of them have been bKash
customers. Whatever motivated them to be using bKash is
the same as those of the survey results. Due to massive
popularity and accessibility of bKash credits, 6 of them
have resorted to using bKash. The remaining 3 were
encouraged by their friends and family who encouraged
Consumer them to utilize bKash. Nonetheless, all of the respondents
acknowledged the fact that they had to endure high
bKash
transaction fees, and some had even received fraud
attempts. Some of them neither gave attention to Nagad
and many used to despise Sulaiman Sukhon’s dubious
promoting techniques.

Sayeed Nasir, General Manager of bKash, claimed they are

Company still today the most appreciated business in Bangladesh.
When discussing about their image, he basically remarked
 30

that their only approach to draw fans is via advertisement

and branding. Although, they did not agree with the
statement of losing consumers due of excessive rates but
rather stated that even though the payment is expensive,
customers are still eager to use bKash as it gives maximum
quality relative to others.

3 of the participants are Nagad users and are largely using

this MFS due to access to Covid-19 test fees. They did not
Consumer have to go to bKash as they believe Nagad is a safer choice
than bKash as several of their peers had to confront frauds
while using bKash.
Aunik Barua, Senior Manager of Nagad, remarked that
Nagad is really the only MFS that has achieved and
garnered a huge customer base within a brief span of time
contrasted to others. They noted that people usually need
Nagad to get the greatest service with the lowest charge as
feasible and Nagad is efficient in achieving that. Nagad is
costing less and launched innovative services such as
Company
Covid-19 fees payments and online payments which has
inspired a large user base to adopt Nagad. Now, they are
also investing a great budget on advertising and promotion
as they are assuming that advertisement about service at an
affordable cash out costs are generating a wide customer
base.

The last 2 respondents are the Rocket customers who are

utilizing this MFS just for salary payments. They said that
Rocket Consumer owing to workplace rules, they had their wage deposit in
DBBL accounts and for this exact reason, they are now
using Rocket over Nagad and bKash.
 31

Manna Deb, Distributive Manager of Rocket, highlighted

that their method was radically different contrasted to
bKash and Nagad. Their key focus group are the bank
members of DBBL and official people; they consider that
Company
they deliver the greatest and secure facility and people are
swayed by this. However, they also claimed they will be
aiming for advertising campaigns and attract a wide
consumer market just like bKash and Nagad.

4.3 Data Analysis

After performing our studies, we have emerged with some of the important elements that are
affecting the consumers’ choice to use their own MFS over the others. The components are
evaluated as below:

1. Social Influence
2. Brand & Popularity
3. Availability & Acceptance
4. Transaction Cost
5. Security
6. Marketing Promotions.

4.3.1. Social Influence

Social impact appears to be the one of the primary variables that encourage the customers to
seek one MFS over others (Majed & Hossain, 2020). This social aspect encompasses
perceptions, social norms and prominence (Lema, 2017). Social impact affects in the
choosing process because individuals need to interact with each other who employs the same
provider; they ought to see what their relatives and friends are using (Anyona, 2018). bKash
triumphs in terms of the social impact; anytime we go for asking individuals, they generally
refer about using bKash and this subjective norm has played a prominent part in picking
bKash above Nagad and Rocket (Mollick, 2021). BKash has established its mark in
 32

everyone’s thoughts. The study also found the same results: 40 of the participants are using
bKash who are influenced by social influence opposed to only 15 answers in Nagad and 12
Rocket consumers.

4.3.2. Brand & Popularity

A brand image is highly crucial in capturing the interest of a broad range of customers (Rao,
2021). Customers generally desire to go for using the things which are secure for them and is
reliable (Himel, 2021). Likewise, bKash has developed a strong reputation by giving the best
and easiest manner for transaction using cell device (Ishtiaq, 2020). It was voted as the “Best
Brand 2020” again for second attempt by customers (UNB, 2021). This trademark has given
much prominence that in every home there is at minimum one bKash user. Relatively, Nagad
has also renamed itself and was able to exceed Rocket within seven months (Bhattacharjee,
2021). It has made commendable efforts during the outbreak that grabbed the attention of a
massive consumer foundation which enabled them to grow recognition and improve the
amount of activity (Bhattacharjee, 2021).

4.3.3. Availability & Acceptance

Availability & Acceptance is a key feature that is affecting the customers’ desire to choose
one MFS above another (Chen, 2020). As per the research, consumers have a higher
preference over bKash opposed to Nagad and Rocket and one of the primary reasons
involved is its accessibility and acceptance. BKash is ubiquitous; thousands of little retailers
 33

sell bKash, regardless of where we are, we may obtain access to funds even in the most
distant regions (Davidson, 2016). People can transmit or pay out money both regionally and
globally with bKash (bKash Annual Report, 2021). In contrast to that, Nagad and Rocket are
not always offered for activities such as in ecommerce websites or even in local businesses,
eateries (Shabuj, Jahid & Hassan, 2021). According to our research results data, 54 of the
bKash clients have reacted on not using Nagad and Rocket owing to low cash out points and
acceptance.

4.3.4. Transaction Costs

BKash has been the dominant player in the MFS industry in Bangladesh since the latest
decade (Saha, 2021). But, Nagad has been effective in breaching this exclusivity and the
important factor was its transaction cost (Bhattacharjee, 2021). Although the acceptance rate
of bKash across country is pretty high, there is a lot of negativities in the thoughts of
customers over its prices (Bhattacharjee, 2021). The bKash application used to impose Tk
17.50 for paying out and Tk 5 for transmitting money and this cost considerably for a
massive amount of people (BB, 2021). In opposed to bKash, Nagad and Rocket are available
for free while transmitting money. This high transaction fees have let people to transfer from
bKash to Nagad and Rocket (Rauf, Babu & Khatun, 2019). As per our data, 63 of the
participants also discussed the problem of their annoyance with high trading costs of utilizing
bKash and 24 of them had actually migrated to Nagad. The transaction expenses are listed as
below:

Table 6: Transaction Charges of the MFS

Transaction Charges of the MFS

Services bKash Nagad Rocket
Cash Out (Per Tk Tk 18.5 and 14.5
Tk 9.99 Tk 18
1000) (Special Agent)
Send Money Tk 5 Free Free
Source: Bangladesh Bank, 2021
 34

4.3.5. Security
Among the most essential characteristics that produced achievement in the mobile financial
service business is its safety (Siddiquie, 2020). Even if many find MFS as a secure
environment, there has been a succession of high-pre le frauds performed against customers,
dealers and distributor and these are significantly damaging the customer trust (Vota, 2017).
BKash, being the leading mobile financial service provider, are often being victims of crimes
and are incurring losses to fraudsters (Moretaza, 2021). 27 responses of the bKash clients also
concur to this topic and their level of security was mediocre. On the other hand, customers
are seeing Rocket as one of the best locations for transfers as fewer fraudulent news was
reported and researchers discovered a greater outstanding and decent proportion for Rocket in
terms of safety. This also provides evidence that users are more likely to use Rocket rather
than bKash as it represents the most secured area for transactions.

4.3.6. Marketing Promotions

Promotion pertains to the 4P’s of marketing and it’s all about conveying their product right to
the market (Alfred, 2020). And as a response of publicity, people get very engaged in the
goods and develops word - of - mouth (Hayes, 2021). The similar scenario occurred with
bKash and earned its organization the most loved brand in the nation. The name “bKash”
continuously started cropping up in front of all, beginning from local shops to billboards to
TV commercials (Mollick, 2021). They substantially engaged in marketing, produced
memorable taglines and regularly exposing customers to their messaging contents to
construct a lasting niche in consumer’s hearts that supported persistent brand awareness
(Mollick, 2021). 34 of the bKash customers also stated that they have begun utilizing bKash
after being inspired from the commercials. However, there was not any reaction about
advertisements in Nagad and Rocket since they focus little on advertising. People did not
discover much significance about Nagad’s marketing of the cast-out fees, and they consider
that Nagad is performing merely unethical brand practices.
 35

4.4 Gap Analysis

Table 7: Gap in the perception of factors between customers and companies

MFS Gap Analysis

bKash holds a king's share in the market and has always been the most
liked MFS among majority of the clients. Some elements that affect
customer to use bKash have already been gathered through
observations and interviews: social influence, brand name, availability
and acceptance, promotional strategies. The representative of bKash
also concurred with the concept that marketing campaigns had a big
influence in recruiting clients. They gave the greatest services and
offerings which built a trademark and words of mouth.

However, there still remains some gap between the perceptions of

consumers and the company. The consumers are unhappy about the
fact that they have to endure excessive charges when sending and cash
out money. Data also suggests that 25 percent of respondents are
encountering issues in affording the cash out expenses. In contrast,
bKash
Nagad and Rocket are charging less than bKash and no consumers
were unhappy about their cash out expenses. In regard to this, bKash
representative refuted the fact and said that cash out costs may impact
a bit, but people would still be using bKash as they are now one of the
top brands loved by consumers. Moreover, though bKash is professing
to deliver the greatest customer service, consumers had to endure
fraud calls and many had to lose money.

Hence, social influence, marketing promotions and availability are the

top criteria that corresponded with the conception of both the
consumers and bKash representatives in choosing bKash over Nagad
and Rocket. However, cost and security aspect will play a vital part in
the following years that may lead to consumers shift to Nagad and
Rocket and bKash representative should work on this.
 36

Nagad maintains the second greatest share of the market in the MFS
industry in Bangladesh. It is one of the most profitable companies that
has gathered a significant customer base within a brief span of time.
Nagad used to offer cheap cash out charges relative to bKash and
Rocket and this is one of the major factors people are starting to utilize
Nagad over bKash and Rocket. Nagad representative agreed to this,
and they are also focused on additional promotions regarding the
reduced cash out charges in order to gain more consumers. Moreover,
Nagad is also giving certain unique services such as Covid-19 test
costs and ecommerce payments which also captivated the ecommerce
platforms and consumers.
Nagad

However, there still remains a big difference between their perception

of consumers and Nagad. Nagad is aiming to focus on more
promotion about reduced cash out charges; however, many people are
seeing this as a dubious business practice. Too much ad is needless for
them, and poll also states that more than 50 percent of the people
regard the advertisement of Nagad as less advantageous to them and
they still cannot trust the brand. Instead, Nagad should be more
focused on expanding their availability locations countrywide as 60
percent of the respondents have expressed this concern which may
also move them to utilize bKash.
Rocket is one of the oldest MFS in Bangladesh. Although it has not
garnered a significant consumer base, it has gained as the safest
platform for transaction. Consumers typically utilize this MFS just for
salary distribution and for processing in DBBL account. Rocket
Rocket
representative also highlighted the fact that their target audience are
solely the DBBL bank users and office workers. They ensure
consumers are making their activities in the safest method possible.
Survey also showed that more than 70 percent clients say Rocket is
 37

the most safeguarded MFS platform for transactions. Hence, there are
no difference in the perception of utilizing Rocket from both the
clients and Rocket representatives

5. Conceptual Framework: Hierarchy of Factors

Figure 17: What influences people to choose one MFS over the other?

According to surveys and interviews, we can identify three distinct factors that has an impact
in the choice of MFS. The factors are:
1. Network: Here network encapsulates the entirety of brand perception, peer influence,
social influence, and the availability of the MFS. MFS is a network product, which
means it will work well when there is a network of interconnected MFS available. For
instance, if there were only one MFS account in existence, it will be valueless, as
there is no one else to continue its functionality. In that sense, a broader network has
been helpful in the adoption. Consumers are mostly using bKash despite higher cost
and more risk to security, this is due to the broad network bKash has been able to
accumulate over the years.
2. Cost: Cost is the cost of cash-in and cash-out. This has become an important factor as
 38

well. This is also the second most important factor. From the interview with the
companies, we were able to identify that the companies too perceive cost to be an
important factor, which is why the cost of cash-out in bKash was decreased to
improve the adoption.
3. Security: The perceived and actual security risk ranks third in the factors of influence.
Although, people are aware of the threats and probably faced some threats in the past,
this is not the primary concern when choosing an MFS. Threat to security can be
costly, but interestingly does not play a very significant role in the decision of
choosing an MFS.

6. Conclusion
We discovered certain gaps in the perception of influencing factors between organizations
and customers as a result of our investigation. However, some of the gaps that have been
discovered show that the company is targeting the masses rather than a niche, and as a result,
customer perception may be biased because our sample does not reflect the MFS's entire
target market.

We also attempted to rank the customers' influencing variables. The MFS network is the most
influential factor, according to the ranking. Social perception, peers, and availability are all
important factors under the broad domain of network factor. Another crucial factor is the
price. What we discovered is that, while security issues are mentioned as a source of
frustration for MF users, people do not base their adoption or usage decisions on perceived or
actual security.
 39

Reference

1. Hassan, M. M., Rahman, A., Afrin, S., & Rabbany, G. (2014). Factors Influencing the
Adoption of Mobile Banking Services in Bangladesh: An Empirical Analysis. International
Research Journal of Marketing, 2(1), 9. https://doi.org/10.12966/irjm.02.02.2014

2. Imtiaz, M., Mahmud, K., & Ahmed, M. (2018, April). CRITICAL ANALYSIS OF
SERVICE QUALITY DIMENSIONS CONTRIBUTING TOWARDS THE BRAND
LOYALTY IN THE MOBILE FINANCIAL SERVICE INDUSTRY OF BANGLADESH.
International Journal of Business, Economics and Law, 18(2), 51-58. Retrieved October 10,
2021, from http://ijbel.com/wp-content/uploads/2018/05/BUS-51.pdf

3. Kabir, Md & Huda, S.s.M. & Faruq, Omar. (2021). MOBILE FINANCIAL SERVICES IN
THE CONTEXT OF BANGLADESH. Copernican Journal of Finance & Accounting. 9. 83.
10.12775/CJFA.2020.013.

4. Khan, M. R., & Chaipoopirutana, S. (2020). Factors Influencing Users’ Behavioral

Intention to Reuse Mobile Financial Services in Bangladesh. GATR Journal of Management
and Marketing Review, 5(3), 155–169. https://doi.org/10.35609/jmmr.2020.5.3(4)

5. Lightcastle Analysis Wing. (2020, December 31). Digital Payments in Bangladesh: A

Road to Growth and Stability. LightCastle Partners.
https://www.lightcastlebd.com/insights/2020/12/digital-payments-in-bangladesh-a-road-to-
growth-and-stability

6. Lightcastle Analytics Wing. (2019, July 24). FinTech - Creating New Opportunities for
MFIs in Bangladesh. DATABD.CO. https://databd.co/stories/fintech-creating-new-
opportunities-for-mfis-in-bangladesh-3401

7. Md. Rasheduzzaman, Palash, M. S., & Md. Mostafizur Rahman. (2021). FACTORS
INFLUENCING THE USE OF MOBILE PAYMENT SERVICES IN SELECTED AREAS
OF BANGLADESH. The Bangladesh Journal of Agricultural Economics, 42(1), 37-54.
Retrieved from http://bjae.bau.edu.bd/home/article/view/101
 40

8. Mobile financial services data. (2021). Bangladesh Bank. Retrieved from

https://www.bb.org.bd/fnansys/paymentsys/mfsdata.php

9. Ngulube, T. (2021). Mobile banking: a catalyst for economic transformation. World

Finance. Retrieved from https://www.worldfinance.com/banking/mobile-banking-a-catalyst-
for-economic-transformation

10. Khatun, N., Mitra, S., & Sarkar, N. (2021). Mobile Banking during Covid-19 in
Bangladesh- A novel mechanism to change and accelerate people's financial access. Green
Finance. Retrieved from https://www.aimspress.com/aimspress-data/gf/2021/3/PDF/GF-03-
03-013.pdf

11. Himel, M. A. (2021). Users' attitude and intention to use mobile financial services in
Bangladesh: an empirical study. South Asian Journal of Marketing, Vol. 2 No. 1, pp. 72-96.

12. Himel, S. A. (2021). Users' attitude and intention to use mobile financial services in
Bangladesh: an empirical study. South Asian Journal of Marketing, 2719-2377.

13. Parvez, A. I. (2015). Mobile Financial Services of Bangladesh: A survey of current

services, regulations, and usage in select USAID Projects.

14. Saunders, M. N. K., Lewis, P., & Thornhill, A. (2021). Research Methods for Business
Students (8th ed.) [E-book]. PEARSON.

15. Taguchi, N. (2018). Description and explanation of pragmatic development: Quantitative,

qualitative, and mixed methods research, ScienceDirect, 23-32.

15. BKASH: TIP OF THE ICEBERG. (2021). Retrieved 23 November 2021, from
https://www.thedailystar.net/next-step/features/bkash-of-tip-the-iceberg-1387663

16. TBS Report. (2021). bKash frees charge for bulk users, doubles it for higher slabs.
Retrieved 23 November 2021, from
https://www.tbsnews.net/economy/banking/bkash-doubles-money-transfer-fee-223468

17. Haroon, J. (2021). Rationalising high MFS charges. Retrieved 23 November 2021, from
https://thefinancialexpress.com.bd/views/rationalising-high-mfs-charges-1612283224
 41

18. Bhattacharjee, J. (2021). Rise of Nagad and Success Factors - Business Inspection BD.
Retrieved 23 November 2021, from https://businessinspection.com.bd/rise-of-nagad/

19. Customers suffer as Nagad blocks accounts alleging suspicious transactions. (2021).
Retrieved 23 November 2021, from
https://www.thedailystar.net/business/economy/banks/news/nagad-customers-accounts-block
ed-suspicious-activity-2171026

20. Mollick, M. (2021). How bKash became the most loved brand of the country. Retrieved
23 November 2021, from
https://www.thedailystar.net/toggle/news/how-bkash-became-the-most-loved-brand-the-count
ry-1842412

21. Khatun, N., Mitra, S., & Sarkar, N. (2021). Mobile banking during COVID-19 pandemic
in Bangladesh: A novel mechanism to change and accelerate people's financial access. Green
Finance, 3(3), 253-267. Retrieved from
https://www.aimspress.com/article/doi/10.3934/GF.2021013?viewType=HTML

22. Lema, A. (2021). 165506-Article Text-426973-1-10-20180123.pdf - 37 Factors

influencing the adoption of mobile financial services in the unbanked population Aulelius |
Course Hero. Retrieved 23 November 2021, from
https://www.coursehero.com/file/96098110/165506-Article-Text-426973-1-10-20180123pdf/

23. Anyona, A. (2021). Theses and Dissertations Available from ProQuest | Theses and
Dissertations | Purdue University. Retrieved 23 November 2021, from
https://docs.lib.purdue.edu/dissertations/

24. Rao, S. (2021). Brand name works for MFs. Retrieved 23 November 2021, from
https://www.citeman.com/3220-brand-name-works-for-mfs.html
25. Hossain, M. (2021). The Branding Strategy followed by bKash Limited. Retrieved 23
November 2021, from http://dspace.uiu.ac.bd/handle/52243/691

26. Chen, G. (2021). bKash Bangladesh: What Explains its Fast Start? Retrieved 23
November 2021, from
 42

https://www.cgap.org/blog/bkash-bangladesh-what-explains-its-fast-start

27. Saha, S. (2021). MFS SECTOR OF BANGLADESH SAFEGUARDING CURRENCY

MOBILITY DURING PANDEMIC. Retrieved 23 November 2021, from
https://idlc.com/mbr/article.php?id=334

28. Rouf, A., Babu, A., Khatun, A., & Rasel, M. (2019). Measuring Customer's Satisfaction
Level and Service Gap Between bKash and Rocket in Bangladesh. Retrieved 23 November
2021, from
https://www.researchgate.net/publication/334451178_Measuring_Customer's_Satisfaction_L
evel_and_Service_Gap_Between_bKash_and_Rocket_in_Bangladesh

29. Siddique, R. (2021). Scopes and threats of Mobile Financial services in Bangladesh.
Retrieved 23 November 2021, from
https://www.iosrjournals.org/iosr-jef/papers/vol4-issue4/E0443639.pdf

Appendix A
Codes in Interviews
Coding:
Serial Small Facts Themes Rank
Friends, Families and Network
peers
Social norms and
1
prominence Social Influence
Interact with one
another of the same
provider
Most loved brand
2
Widespread popularity Brand & Popularity
Strong reputation
Increased amount of
3 Availability
bKash points.
 43

Discovered and
approved everywhere
Acceptance in
ecommerce and
restaurants
Sketchy promotions
Draw fans via
4 advertisements Marketing Promotions
Campaigns and attract a
wide consumer base
Cash out cost and Cost
transaction cost of TK 5
Not affordable with
5 Transaction Costs
cash out charges
Cash out fees in more
redundant
Scammers Security
Safest and victims of Security
6 crimes
Fraud calls

Appendix B
The consent form for the interview

Introduction
You are invited to answer some questions regarding your use of Mobile Financial Services
(MFS), namely bKash, Nagad, and Rocket. Please read this information sheet carefully so
that you can make an informed decision about whether to participate in this study. If anything
is unclear or you have any questions about the research, you are very welcome to ask us, and
we will do our best to provide the information you need.
 44

What is the aim of the study?

The present study is part of our Research Methods course. The main objective is to
understand your motivations of using MFS.

What would I be asked to do if I took part?

If you decide to participate in this study, you will be provided with a list of questions. The
questions are aimed at your usage rate of MFS, as well as the reason for the usage. The
questionnaire also asks for your opinion on the current brand practices of the MFS providers.
You can share any particular insight you have of brands in the market.

Will my data be confidential?

Yes, we will manage all of your data in a secure way to ensure that your confidentiality is
protected.

Will the outcomes of the study be published?

The research outcome will be used to write a research report to fulfill the requirements of the
Research Methods course. However, the report will not contain your name or address.
---------------------------------------------------------------------------------------------------------------
If you are happy to participate, please complete the consent form below:
Please write
“Yes” in the
box

1. I confirm that I have read the attached information sheet on the above project and
have had the opportunity to consider the information and ask questions and had these
answered satisfactorily.

2. I understand that my participation in the study is voluntary and that I am free to

withdraw at any time without giving a reason and without detriment to any
treatment/service.

3. I give consent to store my data for use in future studies.

I agree to take part in the above project

 45

Name: _____________________________________
Signature: _______________________

Date: _______________________

Questionnaire
Demographic information:
1. How old are you?
☐ 18-20
☐ 21-23
☐ 23-25
☐ 25-27
☐ 27+

2. Where do you live?

☐ Dhaka city
☐ Chittagong city
☐ Elsewhere

3. Monthly income:
☐ 30k-40k
☐ 40k-60k
☐ 60k-80k
☐ More than 80k

Usage of MFS:
4. Which of the Mobile Financial Services do you use?
☐ bKash
☐ Nagad
☐ Rocket
☐ Others
5. How long have you been using MFS?
 46

☐ Less than a year

☐ A year
☐ More than a year
6. What is the purpose of your usage of MFS?
☐ Mobile recharge
☐ Occasional shopping
☐ Grocery and essentials shopping
☐ Paying bills
☐ Paying for food delivery, like Food Panda, Pathao, Domino’s, etc.
☐ Paying for ride sharing, like, Uber, Pathao, etc.
☐ Paying school/college/university tuition fees
☐ Others
7. Can you tell me why you decided to create an MFS account?

8. When was the last time you made a transaction?

9. How many times a month do you use your MFS account?

☐ 1-2 times ☐ 3-4 times ☐ 5 times or more

Please answer the following questions regarding the specific providers you use. Note
that you need to answer the questions specific to your providers, for instance, if you are
a "bKash" user, then kindly fill this section. Do not fill this section if you are a Nagad or
Rocket user

10. Please verify the statements in a 5-point scale (strongly agree, agree, neutral,
disagree, completely disagree

bKash
 47

Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree

I use bKash because it is popular

I use bKash because it is available
almost everywhere
I use bKash because my friends,
family, and peers use it
I use bKash because the smartphone
application is user-friendly
I use bKash because I get various
offers and discounts
I use bKash because I can relate to
their advertisements
I use bKash because their customer
care is attentive to my needs and
problems
I use bKash because I have been using
it for a long time and do not want to
switch

Nagad
Statement Strongly Agree Neutral Disagree Strongly
Agree Disagree

I use Nagad because it is popular

I use Nagad because it is available
almost everywhere
I use Nagad because my friends,
family, and peers use it
I use Nagad because the smartphone
application is user-friendly
 48

I use Nagad because I get various

offers and discounts
I use Nagad because I can relate to
their advertisements
I use Nagad because their customer
care is attentive to my needs and
problems
I use Nagad due to government offers

I use Nagad due to cheap transaction

cost

Rocket
Statement Strongly Agree Neutral Disagree Strongly
Agree Disagree

I use Rocket because it is popular

I use Rocket because it is available
almost everywhere
I use Rocket because my friends,
family, and peers use it
I use Rocket because the smartphone
application is user-friendly

I use Rocket because I get various

offers and discounts
I use Rocket because I can relate to
their advertisements
I use Rocket because their customer
care is attentive to my needs and
problems
I use Rocket because of DBBL bank
account
 49

I use Rocket due to cheap transaction

cost
11. Please rank the factors of importance for you when deciding on an MFS on a
scale of one to ten. One is the most important and ten is the least.

1 2 3 4 5 6 7 8 9 10
Brand name
Popularity
Social influence (family,
friends, or peers use it)
Low transaction cost
Marketing (posters, banners,
TV commercials, social media
ads)
Customized offers for food
delivery, shopping, or traveling
User-friendly app interface
Attentive customer service
Safety (No fraud calls, and
secured data)
Brand ambassador

12. What aspects of your preferred MFS do you like?

13. What aspects of your preferred MFS would you like to change?

14. Would you like to add anything else?

 50

link to google form

https://forms.gle/AkMCugxik2FWfeW59