Savings is the first step towards prosperity. The day the first dime is saved, a plan for a prosperous future begins there. With such conviction, bKash has attempted to transform the habit of small savings by introducing digital savings in banks and non-bank financial institutions directly from its app. This solution empowers customers to effortlessly cultivate savings habits without stepping out of their comfort. The convenience made by bKash coupled with the attractive deposit schemes offered by the banks and NBFls is gradually generating a momentum in making small savings using digital platforms.
Driven by a vision of generating financial inclusion, bKash has tirelessly been working to bring essential financial services to the doorsteps of grassroots communities, reaching not just the unbanked and underserved popula- tions but also providing convenient options for those already within the traditional banking system. Nurturing a robust savings culture requires a concerted and collaborative effort from all stakeholders. In this regard, the supportive policies enacted by the Bangladesh Bank have been very crucial, providing necessary frameworks for innovation. Collaboration and co-creation in the financial sector by leveraging state-of-the-art technology can mutually benefit partnering institutions. At the same time, collaborative mind-set of bKash's partner banks and a NBFI (Mutual Trust Bank, Dhaka Bank, City Bank, BRAC Bank, and IDLC Finance) has also been instrumental in propelling the initiative forward.
Catering to a diverse range of financial goals and capacities of small savers, bKash offers flexible savings options, allowing customers to initiate their savings journey with amounts as low as BDT 250 per week, scaling up to BDT 10,000 per month, all conveniently managed within the bKash app. Beyond traditional savings plans, bKash also facilitates customers, adhering to Islamic principles, to access shariah compliant savings schemes of City Bank and Dhaka Bank. Empowering users to make informed financial decisions, bKash app provides a valuable feature that allows customers to easily compare DPS rates offered by different institutions. Such transparency in offerings allows customers to select plans that suit their needs and financial objectives. Further- more, it provides savers with a detail and up-to-the-minute view of their savings progress. Users can instantly check total accumulated savings, the interest earned to date, and upcoming instalment due dates, all in one convenient place. These are a few of the many factors that have made DPS in the bKash app a compelling choice for individuals seeking convenience, meaningful returns, and greater control over their finances.
People can open DPS in bKash's app in minutes with banks and NBFI anytime from anywhere, eliminating paper- work and the necessity of physical visits to bank branches within the banking hours. This convenience has been particularly transformative for people living in remote areas in the country, as well as marginalised communities who may have previously faced significant barriers to accessing traditional banking services. bKash has effectively ensured access to small savings for almost all people across the country, regardless of their location or earning ability.
Potentially bKash's DPS plan may encourage financial discipline among young savers, especially students, because the ability to manage finances through a smartphone means they can save time and confidently navigate through the process. Such assumption has also been supported by a recent survey by bKash that shows about 48 percent of customers who have opened DPS through bKash are under the age of thirty-five. It's fascinating to find younger savers who prefer systems that give them not only access, but also flexibility, and are seeking suitable tools to fully realize their financial possibilities, both now and for the future.
Another appealing feature of digital savings is the progress towards financial inclusivity; approximately 30% of total DPS was opened by women, a significant step towards financial empowerment. Due to the opportunity to make small savings from home, women across the country are increasingly becoming interested in savings through digital means. It has been a common practice to set aside small sums of money from daily family expenses and place them under the mattress. bKash has become the collective mattress for small savings for millions of small savers under a regulated system.
bKash which tries to be a purposive financial operator leveraging continuous innovation is humbled by the customers' trust and confidence in the institution. Large scale execution of small digital savings is an empowering phenomenon which demonstrates that simple but right intervention has the potential to generate a capital pool impacting national growth.
