Seamless access, secure transaction

A K M Shahnawaj
Managing Director (Current Charge)
Dhaka Bank PLC.

In Bangladesh's rapidly evolving financial landscape, Dhaka Bank is embracing innovation by deeply integrating with Mobile Financial Service (MFS) platforms. A.K.M. Shahnawaj, Managing Director (Current Charge) of Dhaka Bank, discusses the bank's forward-thinking strategies.

The Daily Star (TDS): How is your bank partnering with MFS platforms to assess creditworthiness and disburse nano-loans to individuals who lack a traditional credit history?

A.K.M. Shahnawaj: Dhaka Bank facilitates nano-lending for customers lacking conventional credit histories by offering fully digital loans, like its e-Rin product, and utilising digital platforms, including MFS channels for both the distribution and repayment of loans. The bank assesses creditworthiness by analysing alternative data derived from users' digital behaviour. This approach enables Dhaka Bank to assess risk and provide small loans to underserved clients within a few hours.

The next phase for collaborations between banks and MFS moves beyond basic payments to include micro-insurance, investments, and cross-border remittances. The aim is to create a single mobile interface where users can seamlessly save, invest, and transact globally."

TDS: Could you elaborate on any Deposit Pension Schemes (DPS) or savings products your bank has integrated with MFS apps? How has the response been from rural vs. urban demographics?

AKMS: Dhaka Bank has integrated Deposit Pension Schemes (DPS) and flexible savings products directly into MFS apps such as bKash, allowing customers to open and maintain DPS accounts digitally with small monthly deposits, full e-KYC, and automatic instalment deduction from their wallet. The response has been strong nationwide, with more than 5 million DPS accounts opened via bKash across partner banks. Adoption is skewed towards rural areas, with around 80% of users coming from outside major metropolitan areas, while urban users also participate actively. 

TDS: What specific technological advancements or security protocols has your bank implemented to safeguard the API integration with MFS providers and protect customer data?

AKMS: At Dhaka Bank, we ensure secure and compliant API integration with our MFS partners through advanced security technologies and strong IT governance. We leverage an API Gateway with end-to-end encryption, strong authentication, API security controls, and real-time SOC monitoring to safeguard customer data. We strictly follow the Bangladesh Bank ICT Security Guidelines and data protection standards. Additionally, Dhaka Bank maintains ISO 27001, ISO 27032, and PCI-DSS certifications.

TDS: How is your bank facilitating real-time remittance distribution through MFS channels to ensure funds reach rural beneficiaries instantly?

AKMS: Our bank enables real-time distribution of remittances through MFS channels by linking our remittance management system with mobile wallet platforms. This allows immediate crediting of funds to beneficiaries' MFS accounts as soon as the transaction is affirmed.