Socio-Economic Advantages and Challenges of Mobile Remittance Services in Bangladesh

Abstract

Purpose:The purpose of the study is to find out the socioeconomic advantages and challenges of the mobile remittance services in Bangladesh.

Methodology: The study has adopted exploratory research design and selected both categories of sample sizes through non-probability convenience sampling technique. The study has obtained primary data from 50 recipients of mobile remittance service from various cash points of Dhaka city of Banglalink, one of the most prominent mobile operator in Bangladesh, through face to face interview using a set of semi-structured (close-ended and open-ended) questionnaire and also from 20 employees comprising of 4 employees from each of the 5 bank agents (such as Dutch-Bangla Bank Limited, Eastern Bank Limited, Southeast Bank Limited, Agrani Bank Limited, Uttara Bank Limited) of Western Union Financial Services Inc. and MoneyGram International Inc.-the two leading global money transfer service providers in Dhaka city through depth interview using a separate set of unstructured questionnaire (open ended), and secondary data from published articles in journals, edited book, reports of Bangladesh Bank and different websites.

Findings: The study has identified that mobile remittance service helps to increase foreign reserves, flow of money through formal channel, living standard, social status and fulfill basic needs, and on the other hand, regulatory framework, distribution, lack of technological sophistication among customers, compliance issues are the critical issues among the challenges of mobile remittance services in Bangladesh. Government, banks and telecom operators should educate people and service providers should handle the challenges to ensure the service security.

Study Implications: The study has practical implications and helps to originate the value for the relevant institutions, consumers, policy makers, practitioners, academicians and research students of Bangladesh as well as of the globe.