An Dissertation Report

On
How Fin tech has Changed Financial Transaction – A Case Study on Bangladesh

Supervised By:

Idris Ali
Assistant Professor , Finance
Department of Business Administration
Manarat International University
Gulshan-2, Dhaka1212

Prepared By:
Saima Haque
ID:1646BBA03827
Major In Finance
Department of Business Administration
Manarat International University

Date of submission
4/10/2020
HOW FIN TECH HAS CHANGED
FINANCIAL TRANSACTION- A
CASE STUDY ON BANGLADESH
 Letter of Transmittal
Date :

Idris Ali

Assistant Professor , Finance

Department of Business Administration

Manarat International University

Subject : Submission of Dissertation Report.

Dear sir,

It is a great pleasure for me that, I have the opportunity to submit dissertation report title “How
Fin tech has changed financial transaction-a case study on Bangladesh”. To fulfill the partial
requirement of BBA program after completing my internship successfully. In spite of various
shortcomings, I have devoted my best effort to gather information to prepare this report. Though
I have tried to provide my best attempt to prepare this report, there may have some sort of
inadequacy.
Your acceptance and appreciation would surely inspire me. For any further explanations about
the report, I would gladly present further clarifications. Would you please kindly accept my
report and oblige thereby.
Thanks to you for your time & reviews.

Sincerely Yours

Saima Haque

ID: 1646BBA03827

Major in Finance

Department of Business Administration

I
 STUDENT’S DECLARATION

I do hereby declare that the work presented in this thesis report has been carried out me and has
not been previously submitted to any University /College /Organization for an academic
qualification / certificate /diploma or degree.

The work I have presented does not breach any existing copyright and no portion of this report is
copied from any work done earlier for a degree or otherwise.

I further undertake to indemnify the Department against any loss or damage arising from breach
of the foregoing obligation.

Saima Haque

ID: 1646BBA03827
Major in Finance
Manarat International University

II
 Certificate of Supervisor
This is to certify that the dissertation report on “How Fin tech has changed financial transaction-
a case study on Bangladesh”. For the degree of Bachelor of Business Administration(BBA),
Major in Finance from Manarat International University, carried out by Saima Haque, ID:
1646BBA03827 under my supervision.

To the best of my knowledge and as per her declaration the report is authentic work on the issue
and has not been submitted to anywhere for awarding any degree. She has done her according to
my supervision and guidance. I think this program will help he to build her career.

She is permitted to submit the dissertation report and I wish her best success and prosperity.

_______________
Idris Ali

Assistant Professor

Department of Business Administration

Manarat International University

III
 Certificate of Internship Committee
It is our pleasure to certify that, Saima Haque, ID: 1646BBA03827, is a student of the Bachelor
of Business Administration (BBA), Manarat International University, has been completed
dissertation report as MIU prescribed format. The report has been accepted & may be presented
to Internship Defense Committee for evaluation.

We wish her every success in life.

On the behalf of Internship Committee

____________________________

(MMA / AM / MA / MZI / IA)

Assistant professor

Department of Business Administration

Manarat International University

IV
 Acknowledgement

In the name of the Almighty Allah, the Most Gracious and the Most Merciful. I
would like to begin by thanking Allah who has made it possible for me to complete
the necessary steps to be able to compile this report.

I would also like to thank my parents who have been immensely supportive of all
the endeavors I have undertaken in my life.

Next with warm gratitude from the deepest of my heart I would like to recall all of
them who have been patient and responded to the survey questionnaire.

I am ever grateful to my supervisor Idris Ali, Assistant professor of Business

Administration, Manarat international university. Sir provided the necessary
guidance in every step of the way and without him this report would not have been
possible.

I would like to end with the declaration that whatever good and beneficial can be
found in this report is from Allah and whatever mistakes this report contains is
from me.

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 Executive Summary
Financial technology (abbreviated fin tech or Fin Tech) is the technology and innovation that
aims to compete with traditional financial methods in the delivery of financial services. It is an
emerging industry that uses technology to improve activities in finance. The use of smart
phones for mobile banking, investing, borrowing services, and crypto currency are examples of
technologies aiming to make financial services more accessible to the general public. Financial
technology companies consist of both startups and established financial institutions and
technology companies trying to replace or enhance the usage of financial services provided by
existing financial companies.

Bangladesh is at an advantageous position and can benefit greatly from Fin tech. The country has
a large younger population who can adopt technology faster and potentially become avid users of
Fin Tech. The mobile subscription density of the country is at an all-time high, thereby reducing
the last mile connectivity challenge. Macroeconomic growth factors are also favorable to
catalyses the joining of more people into the formal financial services network. With
encouragements from the regulators, the financial services institutions of Bangladesh should
embrace and adopt Fin Tech in their transformation journey.

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 Table of Content

Chapter-1:Introduction

1.1: Origin Of the study…………………………………………………. 2

1.2: Background Of the study …………………………………………………. 2
1.3: Objective of the study…………………………………………………….. 2
1.4: Scope of the study………………………………………………………… 3
1.5: Methodology…………………………………………………………….. 3
1.6: Limitations…………………………………………………………………... 4

Chapter-2: An overview of Fin tech

2.1: History……………………………………………………………. 6-8

2.2: Fin tech in emerging market………………………………………. 8
2.3: Fin tech in Bangladesh…………………………………………… 9-10
2.4: Type of Fin tech………………………………………………….. 10
2.5: Practices of fin tech in Bangladesh………………………………. 10-13
2.6:Fin tech and online banking……………………………………………. 13-15
2.7: Fin tech and Bkash……………………………………………………….. 15-16
2.8: Fin tech and Nagad…………………………………………………….. 17-18

Chapter-3: Literature Review………………………………….. 19-20

Chapter-4: Analysis and Findings……………………………… 21-36

Chapter-5: Recommendation and Conclusion………………….. 40

References…………………………………………………………. 41
Chapter-1: Introduction

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1.1 : Origin of the Report

Bachelor of Business Administration (BBA) course requires 3 months’ attachment with an

organization or an original thesis followed by a report assigned by the faculty supervisor. I took
the opportunity to do my thesis on ‘How Fin tech has changed the financial transaction-a case
study on Bangladesh’. My topic of thesis has been approved by my supervisor Idris Ali,
Assistant Professor of Manarat International University and he authorized me to prepare this
report as part of the fulfillment of the requirement.

1.2: Background of the study

Financial technology (Fin tech) is used to describe new tech that seeks to improve and automate
the delivery and use of financial services. At its core, fin tech is utilized to help companies,
business owners and consumers better manage their financial operations, processes, and lives by
utilizing specialized software and algorithms that are used on computers and, increasingly, smart
phones. Fin tech the word is a combination of "financial technology".

Fin tech has the financial transaction totally. 20/25 years ago no people can imagine that the
transaction will be so easy and it has been possible because of technology. Bangladesh is
developed country but still they are very expert in financial transaction now because of fin tech.
From rural to urban everyone is used to technology now and how the technology has made
people expert will talk about it in this report.

1.3:Objective of the study

Objective can be classified in 2 way. One is broad objective and other is specific objective.

Broad Objective: To analyze about fintech and how fintech has changed the bangladeshi
people’s transaction system and made it easier than before.

Specific Objective: Specific objective is given below ;

1. To know about the fintech

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2. To analyzethe classification about fintech

3. To perceivehow fintech has changed the world’s financial transaction

4. To accquinted financial inclusion

5. To leard the classifition of fintech perspective of Bangladesh

6. Finally to know how fintech has changed Bangladeshi people ‘s transaction

1.4:Scope of the study

The scope of fin tech has grown way beyond the basic functionalities of online banking, and now
encompasses developments that extend to messaging technology for marketing financial
services, 24/7 virtual assistants, mobile apps, voice banking, social media integration tools and
more.

1.5: Methodology

Methodology is most important part of a report. Because without any sources of information a
report cannot be fulfilled. But there are also some classification in sources. Whenever you
collect information it become data. And there is two classification in data. One is primary data
and other is. secondary data.

Primary Data: Data has been collected my primary data from making Google form and
collected information from random people and got some information different interview.

Secondary Data: Data has been collected my secondary from Google, Google scholar,
Wikipedia, , Different research paper, Different newspaper , Some article.

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1.6: Limitations of the study

There is always some shortcomings while making report . I also faced some problems. Due to
the restrictions in place because of the coronavirus pandemic it has not been possible to achieve a
representative sample. The sample size also had to be compromised. However, this report could
provide insight into a how to use the standardized questionnaire to obtain more substantial
results.

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 Chpter-2:
An overview of Fin tech

5
2.1: History

Financial technology, or Fin tech for short, refers to technology-enabled financial solutions.
It is often described as the union of financial services and information technology. The inter
linkage of finance and technology might seem like something fairly recent but has actua lly
evolved over distinct eras. We could actually say that finance & technology have been
intertwined ever since we can speak of modern society, let’s see the evolution of Fin tech.

Technology has always played a key role in the financial sector. the key periods in the
timeline of fin tech are:

Fin tech 1.0 (1886-1967) is about infrastructure

This is an era when we can first start speaking about financial globalization. It started with
technologies such as the telegraph as well as railroads and steamships that allowed for
the first time rapid transmission of financial information across borders. The key events on
this timeline include first transatlantic cable (1866) and Fed wire in the USA (1918), the first
electronic fund transfer system, which relied on now-archaic technologies such as the
telegraph and Morse code. The 1950s brought us credit cards to ease the burden of carrying
cash. First, Diner’s Club introduced theirs in 1950, American Express Company followed
with their own credit card in 1958.
Fin tech 2.0 (1967-2008) is about banks
This period marks the shift from analog to digital and is led by traditional financial
institutions. It was the launch of the first handheld calculator and the first ATM installed by
Barclays bank that marked the beginning of the modern period of fintech in 1967.

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There were various significant trends that took shape in the early 1970s, such as the
establishment of NASDAQ ,  the world’s 1st digital stock exchange, which marked the
beginning of how the financial markets operate today. In 1973, SWIFT (Society For
Worldwide Interbank Financial Telecommunications) was established and is to this day the
first and the most commonly used communication protocol between financial institutions
facilitating the large volume of cross border payments.
The 1980s saw the rise of bank mainframe computers and the world is introduced to online
banking, which flourished in 1990s with the Internet and e-commerce business models.
Online banking brought about a major shift in how people perceived money & their
relationship with financial institutions.
By the beginning of the 21st century, banks’ internal processes, interactions with outsiders
and retail customers had become fully digitized. This era ends with the Global Financial
Crisis in 2008.

Fin tech 3.0 (2008-Current) is about start-ups

As the origins of the Global Financial Crisis that soon morphed into a general economic
release of Bitcoin v0.1 crisis become more widely understood, the general public developed
a distrust of the traditional banking system. This and the fact that many financial
professionals were out of work, led to a shift in mindset and paved a way to a new industry,
Fin tech 3.0. So, this era is marked by the emergence of new players alongside the already
existing ones (such as banks).The in 2009 is another event that has had a major impact on
the financial world and was soon followed by the boom of different crypto currencies (which,
in turn, was followed by the great crypto crash in 2018).

Another important factor that shaped the face of fintech is the mass-market penetration of
smart phones that has enabled internet access for millions of people across the
globe. Smartphone has also become the primary means by which people access the internet
and use different financial services. 2011 saw the introduction of Google Wallet, followed
by Apple pay in 2014.As technology is becoming ever more central in the finance industry,
we tend to consider banks and fin tech startups as opposing forces fighting for their share of

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the market. The reality is that both sides need each other just as much as they need to
compete with each other.
On the one hand, fin tech startups have taken funding from banks and often rely on banking,
insurance, and back office partners to deliver their core products. Banks, on the other hand,
have acquired fin tech startups or invested in them to leverage new technology and ways of
thinking to upgrade their existing operations and offerings.

Hopefully, this retrospective look into the evolution of fintech will help to sum up the long
way we’ve come until today and put into perspective the busy times ahead of us.

2.2: Fin tech in emerging market

The way mobile phones have changed consumer behavior and how people access the internet
is also the reason why in the table above they differentiate between the developed and
developing countries and speak about Fin tech 3.5 when it comes to the latter. As of today,
the countries with the highest Fin tech usage are China (69%) and India (52%). China, India
and other emerging markets never had time to develop Western levels of physical banking
infrastructure, which has left them more open to new solutions. In the case of China, the
fintech penetration is well above the average global adoption (33%) as well as that of the
average adoption across emerging markets (46%).

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2.3: Fintech in Bangladesh

Bangladesh’s undeveloped financial system, huge unbanked population, and increasing smart
phone penetration rate, have fueled the development of innovative digital finance solutions.
Bangladesh’s startup sector is at an emerging stage but evolving rapidly with several
accelerators, incubators, startup events and some state sponsored program being introduced in
recent years. Increasing mobile phone penetration has played a key role in stirring the startup
scene where mobile phone has emerged as a strong medium to do many other business activities
besides interaction and communication.

Non-banking Fin tech company like bKash is the market leader in mobile money services in
Bangladesh since last few years followed by iPay, another online payment platform where
payment can be made from mobile phone or computer. Some banks are offering similar services
(Rocket, mCash, Ucash) but their market share is very low. Apart from mobile money services,
other banking services like account opening, loans, insurance and internet banking services have
not been automated in most of the conventional banks and financial institutions.
The modern financial services industry is more than 400 years old. Cheques were introduced in
the seventeenth century for settling payments and insurance contracts were used a few centuries
before that. Over the years, financial services institutions have enabled more people to subscribe
to their services. Yet, today, more than 35 million people in Bangladesh don't have a bank
account and their economic activities are not part of the formal economy of the country. Fin tech
can change this scenario, if adopted with the right regulatory framework and technological
support. Fin tech is poised to accelerate financial inclusion in emerging countries like
Bangladesh. Financial institutions in other emerging countries like India have already adopted
many components of Fin Tech and are reaping its benefits. Fintech can reform payments
processing activities within the economy of Bangladesh. Today, a significant amount of
payments are made through cash or through informal economic transactions. Facilitating
payments through specialized financial institutions will help bring a large segment of the
informal economy into the formal economy. Increasing payments through the formal economy
will improve transparency within the economic system and will improve the effectiveness of tax
collection. Fin tech enabled payments processing will also reduce the amount of cash required

9
for the printing and distribution of currency notes. Additionally, it will help mitigate the risks of
counterfeit currencies getting circulated in the country. Reduced requirement of cash will help
the central bank reduce costs and manage risks.
Fin tech has the capability to automate traditional financial activities in a significant way. Retail
financial activities such as granting of loans or approval of an insurance proposal require
verification of the applications using standardized techniques. Fin tech can automate these
verification processes entirely.

2.4: Types of fintech products

1. Fund transfer and payment products

2. Asset and wealth management products
3. Insurance and reinsurance products
4. Banking and capital market products.

2.5: Practice of Fin tech in Bangladesh

Bangladesh is the eighth densely populated country in the world. Its population is 163 million,
according to worldmeters.com. With over 50 million internet users and 131.1 million mobile
subscribers, the country is a fertile ground for fin tech start-ups. The list of popular fin tech
companies in Bangladesh will give you an overview of the fin tech sector in the country:

1. Cloudwell
Founded in November 2012. Cloudwell offers several payment solutions under its brand name
Paywell including prepaid debit cards, payment gateways, and point of sale system. Paywell is
used for prepaid mobile phone top ups, train ticket purchases, utility bill payments etc.
Cloudwell has a network of more 5000 retail shops. Its main customers include big enterprises
across the financial services, telecommunication and e-commerce industries.

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2. bKash
bKash Limited is dedicated to providing Mobile Financial Services. Its ultimate objective is to
ensure access to a wider range of financial services for the people of Bangladesh. The company
has a special focus to serve the low-income people to achieve broader financial inclusion by
offering services that are convenient, affordable and reliable. Launched in July 2011, the
company reached 11 million accounts by the end of 2013,less than three years after launch.

3. DBBL
DBBL provides the most innovative and affordable banking products in Bangladesh. Its mobile
banking platform allows customers to manage their money via their mobile phone. The Asian
Banker Technology Implementation. Awards 2012, the platform earned the “ Best Mobile
Banking Initiative Award”. Since its launch in 2011, DBBL Mobile Banking has won several
awards, including the National Digital Innovation. Award in Bangladesh, the eAsia Award in
Dhaka for best ‘ Driving Economy’, and MMT Awards in Dubai for ‘Best Mobile Banking
Program of the world’.

4.Surecash
Surecash is a leading mobile banking and mobile payment network , connecting people , banks
and businesses in Bangladesh. Using SureCash platform , customers make and receive various
payments such utility bills, education fees ,personal remittance and online purchase using
phones. SureCash is working with 6 local banks.

5.SmartKompare
Launched in 2015, SmartKompare aims to help consumers to find best financial products from
many option. The start-up let users compare financial products from numerous financial
institution and select the best. The solution is simple: looking for best loan , insurance, credit
card and deposit is difficult. Once people are looking for credit card or loan, they visit
SmartKompare website, enter their information and find comparison among products.

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6. UCBL
UCash is a mobile financial service by United Commercial Bank Limited. UCash launched its
service in Bangladesh with the intention to offer bankingfacilities to the majority of the
unbanked population of the country.

7. Project.co
Launched in 2015, Project.co is a secure platform that gives innovators, artists and change-maker
the opportunity to raise funds from their friends, family and project community for a project they
want to create. Right after the launch the start-up receive good response from the community.

8. Nagad
Nagad (Bengali: নগদ) is a Digital Financial Service (DFS) in Bangladesh operating under the

authority of Bangladesh Post Office, an attached department of the Ministry of Post and
Telecommunication (Bangladesh) and operated by Third Wave Technologies Limited (TWTL).
It is the new version of the previously introduced Postal Cash Card and Electronic Money
Transfer System (EMTS) of the Bangladesh Post Office.
This financial service regulated under the Bangladesh Postal Act Amendment 2010 Section 3(2),
a unique law procured especially for the Bangladesh Post Office by the Government of
Bangladesh. The digital financial service was launched by the Bangladesh Post Office on 11
November 2018. It started operations on 26 March 2019[6] celebrating the 48th Independence
Day of the country.

9. Rocket
Dutch-Bangla Bank pioneered Mobile Banking in Bangladesh. It was the first bank to offer
banking facilities through a wide range of mobile phones. Rocket is a Banking process without
bank branch which provides financial services to unbanked communities efficiently and at
affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant
payment, utility payment, salary disbursement, foreign remittance, government allowance
disbursement, ATM money withdrawal through mobile technology devices, Mobile Phone, is
called Rocket.

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2.6:Fintech and online banking

Presently, about 40 out of the 57 banks in Bangladesh offer the internet banking facility. But of
the 40, five -- City, EBL, Mutual Trust, Brac and Standard Chartered -- have taken the online
banking service to the next level: they have rolled out an app such that the customers can access
their bank accounts securely from their smartphones. As of October 2017, there are nearly 17
lakh users of internet banking, according to data from Bangladesh Bank. Of them, more than 90
percent are clients of private banks and the remaining foreign banks. About 6.61 lakh
transactions involving Tk 2,300 crore were made through the internet banking platform in
October last year .City Bank has witnessed rapid growth in its internet banking use in the last
couple of years. Seeing the astronomical demand, it introduced the City Touch, a digital banking
app for its consumers.City Bank has witnessed rapid growth in its internet banking use in the last
couple of years. Seeing the astronomical demand, it introduced the City Touch, a digital banking
app for its consumers.“This banking app has not just made our existing consumers more attached
to our banking system, it has also helped us bring many new customers to internet banking,” said
Mustafizur Rahman, head of City Bank's alternative delivery channels.

According to him, City alone has transacted Tk 1,500 crore through its internet banking window,
City Touch, in 2017 and the number of transactions grew by a whopping 90 percent to 10.5 lakh
last year.

Fund transfer dominates the internet banking transactions, accounting for 38 percent of the
transactions made last year.

City has another internet banking platform, 'i-Banking' that provides limited services, such as
account summary, statement print-outs and cheque book enquiry. On this platform, the bank has
about 2.5 lakh users.

Eastern Bank Limited has also introduced app-based internet banking services for its customers.

Known as EBL Skybanking, the app-based banking service can be accessed by its customers
through any smartphone or tablet.

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At the end of 2017, EBL has 60,000 internet banking users, while the number of Skybanking
users reached 20,000.

Last year, through the two channels a total of 3.5 lakh transactions involving Tk 230 crore were
made, according according to Ziaul Karim, head of branding and communications of EBL.

Mutual Trust Bank is another lender that has been providing internet banking service to its
customers for the last four years.

Presently, the bank has about 25,000 internet banking users who take services such as fund
transfer, utility bill payment, mobile phone recharge, credit card payments and so on.

“We give internet banking services only upon request from our clients,” said Rabiul Alam, head
of alternative delivery channels of MTB.

A customer has to pay Tk 200-Tk 300 annually for the service, he said.

Brac Bank introduced internet banking in 2009, but its full-fledged operations were launched in
2012. The bank has now 90,000 internet banking users. The bank's app allows its users to
perform all kinds of banking activities in real time.

“Fund transfer is the most popular service in internet banking,” said Nazmur Rahim, Brac's head
of retail banking.

The bank sees 40,000-45,000 fund transfers per month on average through the internet banking
platform.

The pioneer in this field is Standard Chartered, which recently consolidated its position as the
market leader by rolling out a robust smartphone app, SC Mobile Bangladesh.

Bankers said although mobile phone penetration has increased significantly, still the vast
majority does not use smartphones.

They also said the high bandwidth price also needs to come down to ensure cheaper internet
access.
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2.7: Fin tech and BKash

bKash was launched in July 2011 in Bangladesh, with basic services: cash in, cash out and send
money, keeping in mind that more than 70% of the population of Bangladesh lives in rural areas
where access to formal banking services is difficult for people. More user-demanded services
like airtime top-up, bills payment, Train-Movie Ticket purchase were introduced over its span.
Now it has its own mobile application for ease of access, which has been recognized as the best
innovation at Financial Innovation Category in Bangladesh Innovation Award 2018 for its
simplified and useful features.

bKash can be accessed via several telephone networks in Bangladesh. bKash's agent network
covers both urban and rural areas in much of Bangladesh.As of 2018, bKash was the largest
provider of mobile financial services (MFS) in Bangladesh.

As of March 2019, there are 16 providers of mobile financial services (MFS), but the two largest,
bKash and Rocket, had a combined market share of over 99%.As of May 2019, they have 3.1
crore active users.In July 2019 total MFS transactions were in excess of Tk 37,477.58 crore.

The last time that Asiamoney did a deep dive into this game-changer, a few months before Ma’s
arrival in 2018, bKash had 30 million regular users. It now has 40 million and counting.

Those 10 million additional customers in a nation of 164 million pack a powerful multiplier
effect. Roughly 90% of the users bKash is pulli pulling into the digital economy have not
interacted with the banking sector before.

If there is one moment in Bangladesh’s recent history that best demonstrates its appeal to
foreign companies, it was when Jack Ma invested in the country in 2018.

The Alibaba founder’s bet wasn’t on Dhaka’s government, per se, but a startup directly on the
front lines of Bangladesh’s transformation from cautionary tale to success story. Specifically, Ma
placed his chips on bKash.

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The mobile-money sensation already had an enviable track record of scoring top investors since
its launch in July 2011, including the Bill & Melinda Gates Foundation and the IFC.

The 20% stake that Ma’s Ant Financial Services Group grabbed in bKash was of a different
kind, however: a market-driven move from one of the world’s most innovative and best-known
financial technology companies.

“It demonstrates growing confidence and business opportunities in Bangladesh,” says Kamal
Quadir, founder and chief executive of bKash.

2.8: Fin tech and Nagad

The Digital Financial Service of Bangladesh Post Office and mobile phone operator Robi Axiata
Limited initiated the process of bringing 50 million Robi subscribers under financial inclusion.
This ground-breaking agreement between "Nagad" and "Robi Axiata Limited" will increase
Nagad's customer base to 60 million, making Nagad the number 1 (one) Digital Financial
Service provider in the country in terms of customer base.

Prime Minister Sheikh Hasina officially inaugurated "Nagad" on 26 March, 2019. Within a very
short span of time, Nagad has expanded service network across the country and has earned the
trust of the people of Bangladesh. Under the dynamic supervision of Posts and
Telecommunications Minister Mustafa Jabbar, "Nagad" has crossed the remarkable milestone of
Taka 100 crore daily transaction. Prime Minister Sheikh Hasina has recently endorsed a directive
to distribute all Government disbursements through "Nagad". Therefore, all Government
allowances will be disbursed through Bangladesh Post Office's Digital Financial Service -
"Nagad".

This revolutionary initiative is a giant step to ensure the financial inclusion of the lower and
middle income population of Bangladesh. Simultaneously, this will also help to achieve the
Sustainable Development Goals (SGDs) of Bangladesh. This will transform the digital financial
service sector of Bangladesh and act as a catalyst for achieving the "middle income country"
status.

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"Nagad" is currently offering customers the most "value for money" cash-out charge in the
industry which is Tk 14.50 per thousand. In addition, there is also offering of Tk 5.00 cash back
per thousand Tk cash-in. "Nagad" is committed to the development of Bangladesh through
empowering millions of people by providing customized and state-of-the-art Digital Financial
Products and Services.

Daily transaction of nagad has crossed Tk.1.0 billion on January 10, just10 months
past its launch.

On March 13, Daily transaction through “Nagad” exceeded Tk 1.6 billion

continuation of the pace of growth.

17
 Chapter-3:
Literature Review

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The Street published that, Fin tech is a term used to describe financial technology, an
industry encompassing any kind of technology in financial services - from businesses to
consumers. Fin tech describes any company that provides financial services through software
or o Broadly, fin tech describes any company using the internet, mobile devices, software
technology or cloud services to perform or connect with financial services. Many fin tech
products are designed to connect consumers' finances with technology for ease of use,
although the term is also applied to business-to-business (B2B) technologies as well.

Fin tech has made inroads with dozens of applications and has changed the way consumers
access their finances. From mobile payment apps like Square (SQ) - Get Report to insurance
and investment companies, fintech has disrupted traditional financial and banking industries -
and potentially poses a threat to traditional, brick-and-mortar banks or financial institutions.

Initially, fintech referred to technology that was applied to the back-end systems of banks or
other financial institutions - but has since grown to encompass a plethora of other
applications that are more consumer-focused. In 2020, it is possible to manage funds, trade
stocks, pay for food or manage insurance through this technology (and often on your
smartphone)their technology and includes anything from mobile payment apps to
cryptocurrency.

19
Fin tech weekly has published that,

The term Fin tech (Financial Technology) refers to software and other modern technologies used by
businesses that provide automated and improved financial services. The fast and innovative progresses
such as Mobile Payments changed the way we manage our finances. Tech-savvy customers, especially
millennial expect money transfer, lending, loan management and investing to be effortless, secure and
scalable, ideally without the assistance of a person or the visit of a bank. Established bank products find
themselves increasingly displaced and for both businesses and customers banking has largely become
more convenient, efficient and ease of access. In contrast to traditional banks, FinTech startups operate
flexible and fast when it comes to implement new services based on changing demands.

Hallmark examples of Fin Tech in our daily life are Mobile Payment apps, Cryptocurrency and
Blockchain like Bitcoin and Gemini. In the future the range of Fin Tech services is predicted to transform
the market even more with AI and machine learning and will make Fin Tech products an integral part of
our digitalized life.

Digi pay. Guru Published that, FinTech is no longer a jargon of the banking industry. Instead, it
has become a familiar term in technology in general. The Global investments in FinTech
ventures has doubled to a whopping $112 billion as compared to $51 billion last year. This is
more than an evidence to prove that the digital revolution is at the doorsteps of financial
services sector.

20
Chapter-4: Findings and Analysis

21
4.5: Findings

96 people has responded in the google form. I am now giving the answers of 96 people.

1.Age

17-22 23-27 28-33 34-39

38.5% 52.1% 7.3% 2.1%

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2. Current Status

HSC 5.2%
Undergradute 53.1%
Graduate 16.7%
Job Holder 18.8%
Business man 6.3%

3. Have you heard the term fintech

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Yes 46.9%
No 26%
Maybe 27.1

4. Do you have mobile banking account?

Yes 84.4%
No 13.5%
Maybe 2.1

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5.If yes then which mobile banking account do you use?

Bkash 81.3%
Rocket 3.6%
Nagad 3.6%
Ucash 0.0%
No account 11.5%

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6. How do you use your mobile banking account?

Frequently 67.7%
Occasionally 32.3%

26
7. What purpose do you use your mobile banking most?/

Online Shopping 12.5%

Paying Bills 14.6%
Regular tranaction 52.1%
Other 20.8%

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8. Do you using ATM booth over bank?

Yes 61.5%
No 25%
Maybe 13.5%

28
9.Do you use cards? If yes the which card do you use most?

Credit Card 46.9%

Debit card 46.9%
Don’t use card 6.3%

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10. When do you learned about online banking?

When it started 71.9%

Few days ago 16.7%
Don’t know about online banking 11.5%

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11.Online banking has speeded our banking transaction

Agree 96.9%
Disagree 3.1%

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12.Reduce the cost of transport and the trouble of standing in a queue

Agree 94.8%
Disagree 5.2%

32
13 .Technology has made people smarter and online banking has a great role in it

Agree 96.9%
Disagree 3.1%

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14 Reached more customers

Agree 94.8%
Disagree 5.2%

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15 Customers safety and Security is hamperd as there is a chance of hacking

Agree 83.3%
Disagree 16.7%

35
16.Overall Fintech has changed the transaction system of Bangladesh

Strongly agree 11.5%

Agree 45.8%
Neutral 32.3%
Disagree 7.3%
Strongly disagree

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Most of the young people know about fintech. They use mobile banking account
frequently. Most of them use BKash . ATM booth is more famous now. Debit card is
used more than credit card. Most of the people are used to online banking now.
Fintech has changed the financial transaction of people has Bangladesh.

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 Chpter-5:

Recommendation and Conclusion

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Recommendation

Fintech is changing the way of transaction day by day. Without a smart phone people
can now use technology now. But there is also some way which I want recommend:

1. Online Banking should be easier so that rural people also can use easily

2. The charge that reduce from Bkash should be more less

3. Training program should be rural areas about fintech

4. More bank should introduce online banking

5. Fintech should be added as a course.

6. Cyber security should more active so that people don’t scared to share financial
data.

Conclusion

In conclusion, fintech solutions are reshaping how the financial sector operates, and will
continue to demand a range of different jobs to meet the needs of an ever more digitally savvy
consumer. Bangladesh is being digital and fintech has a great role in it. Now Fintech has become
a part of our daily days.

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References

1.https://www.daily-sun.com/arcprint/details/455789/Future-of-Fintech-in-Bangladesh-/2020-01-
21#:~:text=Fintech%20is%20poised%20to%20accelerate,within%20the%20economy%20of%20
Bangladesh.

2. https://thefinancialexpress.com.bd/views/reviews/fintech-in-the-context-of-bangladesh-
1587308873

3. https://www.lightcastlebd.com/insights/2020/08/20/fintech-innocation-in-bangladesh

4. https://www.fintechfutures.com/tag/bangladesh/

5. htthttps://www.euromoney.com/article/b1l316z6yk1905/fintech-bkash-turbocharges-
bangladeshs-developmentps://databd.co/stories/global-fintech-progression-and-bangladesh-
13291

6. https://www.thedailystar.net/business/the-promise-fintech-bangladesh-1602703

7. https://www.e-zigurat.com/innovation-school/blog/evolution-of-fintech/

8. https://www.thestreet.com/technology/what-is-fintech-
14885154#:~:text=Fintech%20is%20the%20term%20used,services%20to%20businesses%20or
%20consumers.

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