Nagad offers services to four banks including Rupali

Pragati System, which has been providing mobile financial services to Rupali Bank, under the brand name SureCash, for a long time, will not be able to continue its services owing to changes in business patterns. The development has left the state-owned lender in trouble.

Now mobile financial service (MFS) provider Nagad wants to come up with a solution. Nagad – known as the digital financial service provider of the postal department – sent a letter to the managing director of Rupali Bank on Wednesday, making a formal proposal in this regard.

The MFS provider also sent letters to Jamuna Bank, First Security Islami Bank and Commerce Bank – which used to avail the services of Pragati System – with similar offers.

In the letter sent to Rupali Bank signed by Raheel Ahmed, chief executive officer of Nagad, the mobile financial service provider said that it has learned that Rupali Bank's contract with SureCash is about to expire.

"In such a situation, Nagad is ready to provide services and the company will be able to give the best solution to Rupali Bank. This will enable the state-owned bank to overcome the current situation," the letter read.

The letter also said that at present Nagad has three crore clients and it has been providing corporate services to more than 700 companies, including multinational firms. There are also 15 banks on the list of the service recipients.

The letter states that the postal department's organisation will be able to provide the best service by achieving customer satisfaction.

Nagad officials are hopeful of a positive response to the proposal. They said, on condition of anonymity, that the company will be able to start offering services only after further discussions with the banks on their proposal and finally reaching an agreement in this regard.

Rupali, Commerce, Jamuna and First Security banks were licenced for mobile banking services but Pragati System was providing the service on their behalf.

Pragati System provided services to Rupali Bank under the name of Rupali Bank SureCash while other banks were using the service in the name of SureCash.

At one time, the money for primary school stipends could go through SureCash of Rupali Bank. But last year, Nagad received the responsibility. It was only then that Pragati Systems decided to withdraw itself from the service.

However, Rupali Bank SureCash provides services for different customers: the lactating mothers' support programme, the sugarcane farmers' subsidy, rural electricity companies, as well as different schools and colleges.

On 27 January, a meeting was held between the Bangladesh Bank, Rupali Bank and Pragati System. It was decided that all the technology of Pragati would be handed over to Rupali Bank within the next 45 working days.

According to the agreement, the transfer started on 28 January. On the other hand, due to the withdrawal of Pragati Systems agents, agent services are being provided as an alternative through the branches of the lender.