PROPOSED

PRODUCTS
Insurance Products
Motor Insurance

As per BRTA data, there are 19 categories of vehicles for which insurance is a regulatory
Where
requirement
However, for simplicity’s sake, here only motorbike and private cars are taken into
Who
consideration
At the same time, only third party insurance type is pulled here
What To increase active sub base and activate merchants
a. Tap-in motorbike sellers through providing wallet/ web-based payment gateway and
How
asked to process insurance for the vehicle
b. Integrate with at least two or more underwriters for the required insurance certificate
Why a. Convenience, b. Digital Slip, c. New Customers for Underwriters
When Market is mature enough to avail the option. Relevant precedence is e-commerce platform
a. New Customers (the bikers)
Revenue Stream b. New Customers and probable Merchants (the sellers)
c. New Customers (Insurance Co.) for opportunistic cross-sale
a. Processing fee from Underwriter
Revenue Area
b. Float Income from all the users
Motor Insurance (Contd.)

a. Motorbike- 2929404 nos (as of Feb-2020) with 15% average growth since 2015
Size b. Private Cars- 368267 nos (as of Feb-2020) with 6% average growth since 2010
c. Total vehicle count is 4394365 nos (as of Feb-2020)
a. Divide the total one-time payment into monthly and even daily basis. This would create an appealing
Disruption
buzz among the service receivers
Crop Insurance
Bangladesh, being a coastal delta, is heavily prone to natural disasters for years. As a result, almost every
Where
year, a good amount of crops are destroyed by the nature’s wrath.
A comprehensive study for paddy and wheat, the two most important crops grown in
Bangladesh over the 39 year (1969/70 to 2007/08) estimated that on average nearly 6.4% of the
total value of these crops is lost each year due to a combination of natural disasters including flood,
cyclones and droughts.
To encounter the situation, WB, ADB have made joint programs with Shadharan Bima Corp & Green
Delta Insurance; however, this is not enough
What To increase active sub base
a. Tap-in affected farmers through DEA (Dept. of Agriculture Extension) and other relevant
How
Govt. entities
b. Integrate with at least two or more underwriters for the required insurance program
Why a. Damage coverage, b. New Customers for Underwriters
When Most disasters occur since the summer. Hence, hand shaking preparation should start prior to that
a. New Customers (the farmers)
Revenue Stream
b. New Customers (Insurance Co.) for opportunistic cross-sale
a. Revenue-sharing with the Underwriter on Premium collection
Revenue Area b. Processing fee from the Underwriter
c. Float Income from all the users
Crop Insurance (Contd.)

Total cultivated land area is 85.51 lakh hectares which is divided into 30 agro-ecological
Size zones and 88 sub-regions. Below table will provide a glimpse of affected land areas on some selected
disasters.
Total Damage (Crore) Affected area (lakh ht) Affected farmers Affected dist no
Flood in FY19 1153 1.72 53452 31
The premium Fani
calculation
in FY19 of crop39 insurance is 0.62 not vanilla typed 13631rather this28is usually an unique combination
Sidr in FY07 3019.7 9.2 30
Cons of location, weather,
Aila in FY09
production311
and couple other1.31
natural 176000
attributes. It changes
11
over every 5-10 km areas
even within same city.
a. Divide the total one-time payment into monthly and even daily basis. This would create an appealing
Disruption buzz among the service receivers
b. It would be a short-tenured product (3 months)
Investment Products
Compartmentalization of Bond
At present, Bangladeshi nationals can buy Govt. T-bills and T-bonds in three ways; a. either
by participating in an auction through a primary dealer, b. purchasing from a primary dealer (with whom the person
has his BP account), c. Placing the purchase request to another bank who provides better rate (where he does not
What
have his BP account). However, there is no
Compartmentalization as the product offering in this market where a group of people can
Make a pool of fund and make an concentrated investment in T-bills and T-bonds.
There are other structural issues associated with this bond market
a. Lower demand for corporate bonds (G-sec are risk free, provide higher return, yield tax
benefits, can be withdrawn any time)
b. Lack of investor awareness (lack of investor education program on bond issue)
c. Absence of digital trading platform (trading occur through phone calls making it exposed on transparency
ground)
d. Lack of Supply of bonds (donor loan at 3-4% while investors’ expectation is at c.10%)
e. High cost of bond issuance (1.5%-2% in Bangladesh as compared to c.0.2% in India)
f. Weak regulation and market infrastructure (weak due diligence from the regulator)
g. Inactive secondary market (lack of benchmark yield curve)
However, it’s high time to look into the area as Govt. has lowered the deposit interest rate
And hence, people’s mindset can be shifted to this bond market
a. Sessions with BB officials in providing a business case for compartmentalizing of bonds
Through wallets as part of bigger financial inclusion plan
To do
b. Sessions with Primary dealer banks to initiate/ co-host customer education program
c. Sessions with concerned bond market veterans to create a vibrant secondary market
Compartmentalization (Contd.)

This is yet an untapped market for the wallet providers and its demand side is yet to explore to the
Why
fullest
Supply side of the market is in between BDT0.3-0.4m crore which is continuously rising coz
Size The Govt.’s budget deficit is on the rise. With more and more development work to be done
in Bangladesh in coming years, this bond market is supposedly to grow as well.
Revenue Stream New Customers (the individuals)
a. Fees from trading platform gateway
Revenue Area b. Interest spread income on direct investment
c. Float Income from all the users
 Shares and Stocks

Despite the bearish nature in the country’s stock market, daily trading has been constantly
What Over 0.1m. But, till date there is no unified payment gateway through which the trading house can settle the
fund instantly with the trader.
Here, goes the opportunity. Had the 137545 nos. of transactions can be processed through
Ucash’s omni-linked payment gateway and even 0.25% processing fee been charged over the
total corresponding volume of BDT4225m, an income of BDT10.56m would generate.
Market Capitalization
a. Equity - BDT2692659m
How
b. Mutual Fund- BDT31413m
c. Debt Sec - BDT3277151m
Once been contacted to the active trading houses with Ucash’s omni-linked payment gateway,
How There would be a vibrantly positive response amongst all because, settlement is something every entity
wants to have smoothly.
When Market is mature enough to avail the option.
a. New Customers (the individual traders)
Revenue Stream
b. New Customers (brokerage entities) for opportunistic cross-sale
a. Payment Processing fee from the brokerage entities
Revenue Area
b. Float Income from all the users
Alternative Lending Products
Buy Now Pay Later (BNPL)
This “Buy Now Pay Later” can be offload into a market before any major seasonal/ festival
What
events. Like the name itself, its users would be given a timeframe to payoff the dues.
a. Anyone in above 18 years age bracket; the person has to have his/her NID
b. In absence of any documentary income proof, the customer would be catered through
Who insurance that is the entire unsecured risk would be rationalized by applying insurance while the applicant
will pay the premium; and subsequently, TP (transaction profile) would act
instrumental for his onward product receipt
a. First, the person has to subscribe under this model in exchange of a nominal fee and can buy twice in
each month
b. The customer would purchase among a wide variety of choices and sign the Buy Now Pay
How Later agreement under which he would have to pay a definite amount upfront and the rest to be paid in
two equivalent tranches.
c. The issuer would do the CPV post which the customer would be selected for this offer
d. At default, the customer would have to pay a definite penal charges on top of regular dues
a. Access to extended timeframe to pay off the dues
Why
b. No footprint on CIB periphery
When Before any major seasonal/ festival events
a. New Customers (the buyers)
b. New Customers & probable Merchants (the sellers) for opportunistic cross-sale
Revenue Stream
c. New Customers (Insurance Co) for opportunistic cross-sale
Buy Now Pay Later (Contd.)

a. Charges for Payment Gateway from the sellers

Revenue Area b. Processing fee from the Customer
c. Float Income from all the users
There is no clear market precedence of this product; however, credit card issuers also provide installment
Size
based product offers.
The product owner has to have a fund pull that is interest-centric and Bank’s Transfer pricing policy would
Cons
be applicable herein.
a. This product is available in the Western world (Next Pay Ac in the UK); we need to epitomize to our
social periphery
Disruption
b. One subscription amounting BDT 1000 would be in action for 6 months
c. One cannot pass another credit transaction during s/he is availing one credit
Rental Credit
This is a very short-tenured credit offering to the tenants so that they can pay their house
rents in time. There are several instances where people, all of a sudden, are caught in a disastrous web
What
and can’t make both ends to meet their commitments including house rent. This is a spin-off product
of “Loan against salaried persons”.
An user, wishing to avail “Rental Credit”, needs to have a Ucash account first and through that he
would apply for the credit. The incumbent has to submit his ID proof, rental deed and income proof
through the wallet as well. If necessary, insurance would be integrated to minimize the risk.
Sample Case
Once approved, the issuer would ask for Landlord’s payment platform (another Ucash account) and
would disburse the required to that wallet
obviously upon verification.
a. Short term credit access to pay off outstanding
Why
b. Rebate option on early-bird payment
How a. Tap-in primarily DNCC area for a POC where house rent is more structured than DSCC
b. Integrate with UCB’s lending clients in Real estate category
No clear market precedence is available; however, in June and November when Govt. has to
When borrow big chunk amount to pay its debt and other commitments like BPC payment, money
Market gets drier and many organizations defer their OPEX i.e. salary
a. New Customers (the tenants) for opportunistic cross-sale
Revenue Stream
b. New Customers (the landlords) for opportunistic cross-sale
a. Interest income from credits to tenants
Rental Credit (Contd.)

a. The product owner has to have a fund pull that is interest-centric and Bank’s Transfer pricing policy would
be applicable herein.
Cons b. At present, this product may not be viewed socially viable; however once the cashless
society would become more into the practice, this kind of blended products might add
value.