The Financial Post (TFP): What was the primary idea of Nagad?
Tanvir A Mishuk: The possibility of Nagad began to shape in 2018 while I was working with the ECAB (e-Commerce Association of Bangladesh). `Payment’ and `Delivery’ issues were the significant difficulties the business was confronting. My journey for an answer to the issues drove me to the Bangladesh Post Office. I understood, they have a wide network in the nation and have been working with payment for over 200 years. We chose to move toward them with our thought and in the wake of getting a positive reaction (as they distinctly needed to accomplish something digitally), we chose to accomplice up to give the most wide-ranging payment and digital solutions for the nation.
TFP: What were the major difficulties?
Tanvir A Mishuk: The greatest test was sorting out why endless MFS were neglecting to gain a piece of the overall industry regardless of so numerous empty spaces on the lookout. The new participants were not having the option to continue and had to close down, accordingly, there was just a single part on the lookout. The rest were either wrapping up or acquiring enormous operational misfortunes consistently due to the manner in which the market was set up. In any case, it was anything but a major issue for us, we ad-libbed dependent on statistical surveying and concocted a reasonable field-tested strategy. In this manner, the greatest test was to address the overall scorn towards change among the individuals of our nation including clients, partners, and controllers. For instance, in 2019, the first experience with the computerized KYC was met with questions and doubt in the business: nobody trusted it would work. In three years, we have been so effective in its execution, our friends in the business are going with the same pattern. We needed to persuade the controllers that computerized KYC is undeniably safer than the manual cycle and will be substantially more proficient. Every one of our advancements was new to the controllers, partners, and furthermore the buyers; it was very testing to acclimate them with the items and was one of the greatest beginning difficulties.
TFP: You were utilized in the telecom business prior to changing to the MFS area. How could you move your concentration to the MFS?
Tanvir A Mishuk: Before 2007, there were basically no guidelines on global bringing in Bangladesh. The sum of our global calling experienced a satellite leased by Bangladesh Telecommunications Company Limited (BTCL) and a sole submarine link association. The business was worked by unfamiliar media transmission organizations who were taking all our well-deserved cash (a large number of dollars consistently) from Bangladesh. In the wake of moving toward BTCL with this issue, I confronted a comparable issue of the hesitance to transform from their side since it includes plenty of responsibility issues.
Thus, we began with all the approaching calls from Singapore, and inevitably, the sum of call cash in Bangladesh was taken care of by our organization before our companions in the business began to enter the opposition. In this manner, I had fundamentally the same experience while presenting something new on the lookout.
TFP: Are you content with the manner in which Nagad has become up until this point and the achievements it accomplished?
Tanvir A Mishuk: obviously! In a brief period, the organization has set itself up as one of the quickest developing MFS on the planet. We are glad and on the off chance that we can continue this movement, we will have the option to achieve a half piece of the pie by 2021.
TFP: MFS in Bangladesh is yet to turn into a channel for formal financial items, for example, reserve funds and credit items. The vast majority of the clients use it for payment-related administrations. Money, in real money out exchanges, and person-to-person (P2P) exchanges. What should be possible to remember more individuals into formal banking for country Bangladesh?
Tanvir A Mishuk: A critical extent of our populace in our nation doesn’t utilize formal banking, which is a significant obstruction to guarantee comprehensive banking. I accept the long and tangled administrative work associated with the cycle is the greatest impediment to the multiplication of formal banking in Bangladesh. We need to make this cycle more available to everybody. Likewise, it won’t be plausible to incorporate the whole populace into formal banking. The expenses of keeping up singular financial balances are normally not legitimate with the measures of the exchange or store, which brought about acquiring misfortunes for the conventional banks. So as to incorporate the whole populace under the umbrella of formal banking, we have to present branchless banking (computerized banking) and furthermore make the cycle simpler.
TFP: With expanded transformation, an ever-increasing number of clients are being exposed to defrauding and digital assaults. How are MFS specialist organizations preparing themselves to handle current and future security hazards (regarding innovation and client mindfulness)?
Tanvir A Mishuk: It is difficult to ensure that digital burglaries won’t occur on the grounds that the majority of the occurrences are going on because of human blunder. Clients are unwittingly sharing their PIN and OTP in the general population finishing in the digital burglary. In total, Banks and MFS organizations in Bangladesh are utilizing the most refreshed security frameworks on the planet, there has once in a while been an episode where a hack has occurred because of mechanical glitch, particularly in Nagad we are actually much progressed and it is difficult to break our security frameworks. A staggering number of digital burglaries in Bangladesh are occurring a direct result of an absence of mindfulness. Individuals are sharing photos of their NID/ENID in different mediums. Thusly, data from them is utilized to extricate cash from their records.
I would state there is an irrelevant possibility of a digital burglary occurring through framework hack as the greater part of the organizations utilize the most exceptional security framework on the planet (CISCO) which is refreshed much of the time. We need to focus on mindfulness.
TFP: As somebody who has been known to cause interruptions on the lookout, from where do you feel the following disturbance originates from?
Tanvir A Mishuk: The following interruption will originate from computerized banking. I have just discussed the cost-viability of advanced banking. Computerized Banking is basic so as to build up monetary consideration in Bangladesh.
We are certain about the achievement of our advanced financial framework which is in its R&D stage at this moment. It will permit individuals to open a ledger easily. Subsequent to getting affirmation from the client, we will set a record with the current data in the individual’s NID/ENID. The whole cycle will be smoothed out, productive, and in particular, practical.
TFP: Do you accept computerized banking will likewise change business banking?
Tanvir A Mishuk: Personal banking has been moved to computerized banking over the world however, corporate banking has remained generally physical. There are numerous customs in business banking that are conceivable to lead indirectly; in this way, business banking will stay physical for the not so distant future.
Nevertheless, computerized banking can assume a colossal part in bringing Micro SME(s) the nation over under monetary consideration. Because of cutoff points on exchange sums, they are unequipped for moving through MFS. Then again, banks debilitate them to open a record because of a paranoid fear of misfortunes. Computerized banking gives an extraordinary occasion to bring them under conventional banking.
TFP: Do you accept we are enough prepared (mechanically) to give the business standard administrations to our populace?
Tanvir A Mishuk: If we talk about ourselves, we can begin giving advanced financial administrations inside a month of acquiring a permit from the Bangladesh Bank. We are as of now furnished with the most recent computerized banking innovation on the planet. A comparative advanced financial motor is as of now in activity across 72 nations on the planet.
TFP: What different areas do you think Bangladesh has the occasion to gain comparative ground and cause disturbances?
Tanvir A Mishuk: The pandemic has caused structural movements in different areas in Bangladesh. In spite of gigantic ventures, the web-based business (E-commerce) area has been checking enormous misfortunes for the majority of the previous decade. In any case, the pandemic has influenced the equilibrium towards the online business area without precedent for history and an overwhelming fragment of the populace has begun to lean towards it. We have seen our internet business exchanges soar since the pandemic and the pattern will move towards digital commerce.
TFP: Why has Nagad been so successful despite having so many competitors?
Tanvir A Mishuk: It all depends on how you bring a product to the market. We investigated the problems in the market before beginning with the solutions on our hands. We were bold and innovative with products like digital KYC and introduced a service where customers can get money even if they do not have a Nagad account. We guaranteed total freedom in sending and receiving money and facilitated opening accounts within a minute. The secret technique to our success is innovation through a sustainable business model. We are also now offering vast interest on the customer’s deposit and introduced the lowest level of cash-out charge for the entrepreneurs, Tk 6 for every Tk 1,000 cash-out and all these facilities without a business model help us to get the primary success.
TFP: Where do you see yourself in the following five years?
Tanvir A Mishuk: Currently, I am centred on Nagad: in the following five years, I want to bring every adult person in our country under financial inclusion. That is only my objective at this moment.
TFP: Thank you very much for giving us your valuable time.
Tanvir A Mishuk: Thanks to TFP.