Now is the time for the fintech industry to go for product diversification as the request needs further savings and credit products, Anir Chowdhury, policy counsel of the a2i Programme, said on Monday.
“ We've seen how the cabin, micro, and small enterprises suffered during Covid-19. Indeed when the government blazoned subventions, they weren't suitable to take advantage of that because they were digitally absent — they were physically present but digitally absent,” he said.
So, if you aren't digitally present also you don't get the subventions that are electronically available, Chowdhury said while speaking at a webinar organized by Visa and MicroSave Consulting (MSC). Through the webinar, they launched a report named
“ Covid-19 and FinTechs in Bangladesh – Impact and Resilience.”
In the once decade, the Bangladeshi launch-up ecosystem has managed to attract$ 330 million in investments, according to the report.
Further than launch-ups, employing1.5 million people are continuously fastening on growth and operation through product and service invention, and diversification. With the significant donation of fintech companies, Bangladesh is gradationally getting a fintech star in Asia indeed though the country stands at the 61st rank in the FinTech World Ranking, the report further reads.
Agitating the epidemic’s goods on the Bangladeshi fintech industry, Anir Chowdhury further said the country saw an uptake of bill payments digitally amid Covid-19, including the payment of colorful types of mileage bills. “ And what we see now is that indeed after the lockdown was lifted, this has come to a geste as people actually started seeing the benefits of digital deals,” he added.
“ We saw-KYC from Bangladesh Bank — we worked veritably nearly with the central bank to develop this — was put to test in a big way for the first time during the early months of the epidemic. One of the tests was garment workers getting their stipend paid digitally,” he further said.
Speaking as the principal guest at the webinar, Md Khurshid Alam, administrative director at the Bangladesh Bank, said “ In the last decade a number of people have come formally financially included in Bangladesh. The evaluation of digital technology has contributed to advancements in fiscal addition. Using technology has always been in the top precedence list of Bangladesh Bank, which has literally proven to be a game-changer in our script.”
Since March 2020, numerous Bangladeshi launch-ups, SMEs, and business realities had to either shut down or decelerate down their operations because of the Covid-19 epidemic, and fintech companies were hit hard as well, he said. Indeed though the epidemic accelerated the relinquishment of digital financial services and products, a number of launch-ups lost earnings and coffers and stopped operations altogether due to lack of backing.
On the other hand, digital fiscal services, logistics, grocery on-demand, EdTech, and HealthTech witnessed steep growth and left other assiduity players before. Gupta said fintech companies endured the epidemic in quite a mixed way. On the bright side, payment-grounded companies, similar to MFS providers, PSPs, PSOs, payment aggregators, and digital holdalls, enjoyed significant growth whereas others that support banks and NBFIs or mate with retail merchandisers suffered in a ruinous way.
According to the report, new product launches or plans were facing detention from early-stage fintech and growth-stage fintech either lost deals or failed to attract new investment openings. Still, progressed associations faced a massive flux of guests and earnings while facing technological roadblocks. In order to survive, the maturity of the affected companies had to rebuild their business models from the ground up.
Starting from introducing a niche product into the Bangladesh request to laying-off, mature, and growth-stage fintech rotated their modus operandi to endure the fiscal losses. Some of the realities not only strengthened their brigades, especially the technological bones, by retaining further coffers but also invested in technologies to ride on with the increased demand. Accelerators, as well as incubators, supported structure adaptability through cooperation openings, premonitory support, invention competition, and fiscal support, the report added. The webinar also included an interactive panel discussion, named “ How we can support FinTechs and startups in this post-COVID world,” moderated by Soumya Basu, country director of Bangladesh, Nepal, and Bhutan for Visa. Panelists for the session were Shah Zia-ul Haque, deputy general director of Payment Systems Department at Bangladesh Bank, Md Arfan Ali, chairman and CEO of Bank Asia, and Ataur Rahim Chowdhury, co-founder and CPO of ShopUp.