Mobile banking transactions in Bangladesh experienced a sharp decline in July 2024, dropping by over 21%, largely attributed to the countrywide internet shutdown and slowdown imposed to curb the anti-discrimination student protests.

According to data from Bangladesh Bank, Tk 1.23 trillion was transacted through mobile banking in July, down from Tk 1.56 trillion in June, marking a significant decrease of approximately Tk 330 billion.

The central bank report highlights notable reductions across key transaction categories. Cash deposits (cash-in) through mobile financial services (MFS) fell to Tk 353.35 billion in July, compared to Tk 435.62 billion in June, a decline of Tk 82.26 billion. Similarly, cash withdrawals (cash-out) dropped to Tk 401.14 billion in July, down from Tk 513.54 billion in the previous month, a significant decrease of Tk 112.40 billion.

Payments for utility services through mobile banking also declined, totaling Tk 25.75 billion in July compared to Tk 32.23 billion in June, which reduced about Tk 6.5 billion. Additionally, remittance transfers via mobile banking saw a drop, with expatriates sending Tk 7.14 billion in July, down from Tk 9.94 billion in June, representing a decrease of around Tk 2 billion.

Despite this downturn in transaction volume, the number of mobile banking accounts continued to grow. In July 2024, the total number of mobile banking accounts reached 233.13 million, reflecting an increase of 709,650 accounts from June.

Among these, 135.65 million accounts belong to male customers, while female customers hold 97.18 million. Geographically, 109.8 million accounts are based in urban areas, with 128.94 million in rural regions.

Bangladesh’s mobile banking sector, introduced in 2010, has evolved rapidly, with mobile financial services (MFS) officially beginning in 2011. Dutch-Bangla Bank was the first to launch mobile banking services, followed by bKash, which has since become the dominant player in the MFS market.

Other key providers include Nagad, Rocket, Upay, MyCash, and SureCash, with 13 banks and financial institutions currently offering mobile financial services in the country.