Competitive strategies

Mobile Financial Service (MFS) operator bKash is dominating the market in

all aspects with the highest market share while Nagad is growing rapidly, says
a study.

bKash, a subsidiary of BRAC Bank, has the highest market share, accounting for
40.07 percent or 5,39,68,418 account holders in the MFS industry. It was followed
by Nagad, the digital financial service provider of the Bangladesh Post Office
(officially), which makes up 25.39 percent or 3,41,96,247 account holders of the
total market share, according to the study conducted by the Bangladesh Competition
Commission.

Dutch-Bangla Bank’s Rocket accounts for 18.18 percent or 2,44,92,299 account

holders and Rupali Bank’s SureCash 11.69 percent or 1,57,54,498 account holders.

Other 10 MFS operators including Rupali Bank’s SureCash, UCB Bank’s upay,
Trust Axiata Pay, and Islami Bank’s mCash share the rest of 4.67 percent.

Of the total market share, the top four MFS providers—bKash, Nagad, Rocket and
SureCash— make up 95.36 percent in terms of account holders, 70.52 percent in
terms of MFS agents, 99.35 percent in terms of the average daily transaction and
99.85 percent in terms of monthly cash-out transactions.
bKash started its journey in 2010 as a joint venture company of BRAC Bank and
Money in Motion LLC, USA. It has 66.46 percent of the market share in terms of
average daily transactions, 78.08 percent in terms of the number of monthly cash-
out transactions and 22.70 percent in terms of the number of MFS agents.

“Adding various new features like add money, pay bills, and make payment for all
kinds of clients have brought business success,” said an executive at bKash.

“bKash has been providing convenient, affordable and reliable services to its clients
including the low-income people since 2010, making it top in the market,” he said.

Nagad, a joint venture of Bangladesh Post Office and Third Wave Technologies
Limited, was formally launched on March 26, 2019.

It holds 13.35 percent of the market share in terms of the average daily transactions
and 9.59 percent in terms of the number of monthly cash-out transactions and 13.54
percent in terms of the number of agents, said the report.

“We are trying to grow by gaining the trust of our clients,” Nagad CEO Rahel
Ahmed told The Business Post.

Rocket, the country’s first MFS operator, is enjoying a 19.27 percent market share
in terms of average daily transactions and; 23.29 percent market share in terms of
the number of agents, which is the highest in the market.

The Bangladesh Competition Commission prepared the report after collecting data
as of June last year from the MFS operators.

At present, thirteen MFS providers are operating in the market and the number of
MFS agents (excluding Nagad) stood at 11,63,379. The number of registered clients
was 10.90 crore as of March this year.
Task:

1. Analyze Bkash and Nagad current Marketing strategies (STP, 4p) (Open source)
2. How Bkash can hold its position as leader. Recommend your strategy/strategies with rationale.