Bangladesh has entered the international mobile remittance market based on the previous success of the Philippines model. Bangladesh’s migrant workforce has been encountering the typical remittance issues: inability to send money frequently, delays while sending, unsecure distribution, inconsistent delivery methods, etc. To combat these issues Bangladesh has established an mRemittance service supported by two local banks -- Dhaka Bank Ltd and Eastern Bank Ltd -- and the country's second largest mobile operator, Banglalink.
This is a ‘bank led’ model ensuring the process adheres to financial regulations. The value chain between the banks and mobile carrier is also well understood, which bodes well for the MRemittance service to become a success. Dhaka Bank Ltd, Eastern Bank Ltd and Bangalink have clearly defined operational assets that each partner is providing to facilitate this new network, another reason to believe this will work in the marketplace.
This service will no doubt be helpful to the many Bangladesh migration workers, but it is also showcasing how these international remittance models are maturing. No longer are these being introduced with many open questions about revenue sharing, compliance issues, etc. etc. These issues are now being addressed first and then going to market second, which is a great step forward for international mobile remittance.