Challenges of the third party distribution and management model: a case study on bKash

Abstract

This case study examines the third-party distribution and management model of bKash, a leading mobile financial service provider in Bangladesh. The study highlights how mobile financial services contribute to financial inclusion, particularly for rural populations lacking access to formal banking systems. By utilizing a large network of agents and distributors, bKash has achieved extensive market outreach with lower operational costs. However, the model also presents significant regulatory and compliance challenges, including transparency issues, customer verification, transaction limitations, and unauthorized remittance activities. The study further discusses sustainability concerns, increasing market competition, and the importance of regulatory compliance in ensuring trust and long-term growth in Bangladesh’s mobile banking industry.