We are all familiar with the term fintech but perhaps many still do not know about it. If you’ve ever withdrawn money from your mobile, paid for something, or made a purchase then you are familiar with this billion-dollar industry. When we combine something in finance with technology, it is fintech.
Fintech is largely based online. Internet banking, credit cards, debit cards, ipay, gpay, robicash, paywell, QR code scanning, mobile financial service (MFS) providers, payment system operators (PSO) and payment service providers (PSP), cryptocurrencies, etc. all are included in FinTech. There are also many wallet services like sslcommerz, shurjopay. MFS is much more ahead in the digital sector of Bangladesh. Dutch Bangla Bank first started the journey of MFS in 2011, in the same year BRAC Bank launched bkash, Islami Bank mcash etc. In 2019, nogod first introduced EKYC (Electronic Know Your Customer) where they can open their bank account on their phone. Rural areas are also quite acknowledged with these features of fintech. Bangladesh is home to 112 Fintech companies out of these startups.
According to the Global Fintech Index 2021, Bangladesh ranked 78th among 83 countries. There are four fintech areas digital lending, payments, blockchain and digital wealth management. Bangladesh is lagging behind in this sector than other countries. Fintech managers are trying to develop their old tools into the new software. Until July, 2021 the total amount of MFS accounts was more than 10+ crore. Every year Bangladesh receives a huge amount of remittance from international money transfer companies. For innovation and research Bangladesh doesn’t spend much. Though Bangladesh Bank is trying to do well in this field and also the foreign investments in many startups in Bangladesh are increasing. Hoping that the growth of innovation in this sector will increase in the future. The fourth Industrial Revolution is increasing human productivity. And fintech is connected directly with 4th IR because our country’s finance sector is financing a lot in the technological sector.
AI is the first priority in this sector. Besides these you need to learn cloud computing, coding, communications skills. FinTech professionals don’t really need deep tech knowledge to make it in the field. They require substantial familiarity with the workings of the different underlying technologies to use them for FinTech innovations. Any kind of internships or connections with people may help you to join in a fintech company. It will be better if you’ve a degree on finance, accounting or business. There are many online platforms in Bangladesh where you can do a basic course.
We are in this era of globalization. Without technology life will become harder. And FinTech is all about financial technology. The salaries also high in this sector. What you’ve to do to join in this sector I’ve told earlier but technological knowledge is very much important. Also, MFS we’re hoping that people will get used to internet banking, cryptocurrencies and all.
Department of Banking and Insurance
University of Dhaka