Bravo Bangladesh Bank! The central bank has recently taken a step towards bringing discipline in the mobile financial services sector and truly, it merits commendations. In a circular issued by the Payment Systems Department of the bank, mobile financial service providers have been urged to follow the code of conduct as stated in the National Broadcasting Policy, 2014 while making any kind of advertisements in the print, electronic and social media.
The central bank authority had to issue the circular to quell down the heat generated in the sector following some unpleasant developments after one MFS provider started an advertisement campaign against another provider using indecent and demeaning language. This was quite unfortunate, undesirable and unethical which dismayed everyone watching and enjoying the massive and unimaginable development in the mobile financial services in the country. In that backdrop, Bangladesh Bank being the regulator of the sector, took the prudent decision in reminding the MFS providers to refrain from using indecent and inappropriate language while making advertisements in newspapers, electronic media, social media or even in leaflets, billboards and merchant points.
The point to ponder is about competition. The arrow was shot by a new entrant against the leader in rapidly emerging market. But it sounded rancorous which perhaps prompted the central bank authority to issue the notification.
Apparently, there is a globally accepted and practiced norm for advertisements. Known as the Advertising Standards Code, reviewed in 2018, it stresses that all advertising must be legal, decent, honest and truthful and must respect the principles of fair competition so that the public can have confidence in advertising. The Code further adds that advertisements must not contain anything that is indecent or exploitative. Advertisements must not use offensive, degrading or provocative language.
It is a well agreed fact that since its beginning in 2011, there has been an astronomical development in the mobile financial services in the country. It played a great role in wide and rapid financial inclusion of all in the society. It was more of a blessing for the poor segment of the society who could not avail any traditional banking services due to a plethora of problems including illiteracy, safety and mobility limitations. However, all changed with the advent of the mobile financial services and as time passed, the list of conveniences became longer. No matter where you are, one can transfer money in fraction of a minute. No more worries for payment of bills for your utility services like electricity, gas, water etc. Even if you suddenly lose your mobile phone access due to dearth of pre-paid balance, one can recharge instantly and be connected again.
As it is known, before the onset of mobile financial services about 78 per cent of the population remained unbanked. Pioneered by bKash to facilitate the huge unbanked population, mobile financial services witnessed a revolutionary journey through the last decade. There has been over 56 per cent increase in incorporating the adult population into the financial inclusion web and all these were possible due to the pragmatic steps and farsighted strategy of the central bank. What was more important that the risks in transactions were well controlled and for which Bangladesh Bank made it mandatory to ensure that KYC (Know Your Customer) requirements are fully respected while opening any MFS account. Perhaps, this still remains the biggest challenge for the regulator to ensure that the KYC formalities are fully adhered otherwise any lapse could bring about disastrous consequences in the sector. After all, the MFS sector has already proved its worth in contributing to national economy and comforting general mass with enormous conveniences.
The biggest benefit of mobile financial services was seen during the Covid 19 pandemic. When everything came to a standstill with mills and factories closed, schools, offices and banks shut, markets shuttered down, there were obvious reasons for spiraling worries about monetary transactions. Employees worried about receiving salaries while owners and chief executives of corporations scratched heads in finding ways and means to ensure payments to their staff. With shops and markets closed, people confined to their homes with surrendered dependence on online shopping for their groceries and other day to day needs including medicines. Nevertheless, all worries were won over because of the mobile financial services.
All these success stories of mobile financial services in Bangladesh cannot be allowed to be diluted. The regulator, Bangladesh Bank, has been enthusiastic and alert about keeping the momentum of development in the sector. It is desired that they will tighten their belt to ensure holistic adherence of their regulations by the MFS providers. Their latest circular urging the providers to refrain from indecent and improper or provocative advertisements is a bold step, no doubt. Competition However, the central bank needs to be vigilant and more proactive in observing the conduct of business of the service providers including compliance with the regulations for wallet opening. This will help build the safety net for all - service providers as well as the customers against any risk of fall out in the sector. More importantly, it will strengthen the well perceived vision of promoting financial inclusion of all for sustainable progress of the nation.
The writer is freelancer & CSR Consultant
