MyCash partners Bangladeshi bank to bring financial inclusion to migrants
By Digital News Asia October 17, 2019
- Working on getting a remittance license for Malaysia & Singapore
- Received remittance license in Australia, started direct remittance services
SINGAPORE-based MyCash Online (SG) Pte Ltd and The Premier Bank Ltd , a private bank in Bangladesh, signed a Memorandum of Understanding (MoU) for fintech collaboration to strengthen financial inclusion for unbanked migrant Bangladeshi workers in Malaysia, Singapore, and the Middle East.
Mehedi Hasan, the founder of MyCash Online and managing director & chief executive officer of Premier Bank M Reazul Karim, FCMA signed and exchanged a MoU on behalf of their respective organisations. The signing of the agreement signifies the strategic alliance between the companies for the creation and activation of multilateral financial products to serve unbanked migrants, especially those who are from Bangladesh.
Mehedi said, “Bangladesh’s GDP is heavily dependent on the incoming remittance from Southeast Asia, the Middle East and North America. It contributes more than 10% of the total GDP of the country, yet these senders remain unbanked. In Bangladesh, only 17% of Bangladeshi adults have a bank account.
“MyCash & Premier Bank is here to solve this problem by offering a wide range of financial services and create the awareness of sending money using a legal channel”.
He also said that MyCash Online has already received a remittance license in Australia and started direct remittance services. It has so far, received very positive feedback from the community. MyCash is currently working on to get remittance license in Malaysia and Singapore to further expand its service. MyCash is also planning to start its services in the Middle East from next year.
Last month, MyCash Online secured an undisclosed amount in a new financing round from US-based early-stage VC 500 Startups and Malaysian Angel Investor Ng Sek San.
MyCash will use the investment to acquire remittance licenses in Malaysia and Singapore, and also to established remittance partnerships into Bangladesh, India, Nepal, Indonesia, and the Philippines.
MyCash started operations in 2016 in Malaysia. Since then, it has performed more than 2.5 million transactions worth about US$30 million (RM125.6 million). It has served around 100,000 unique migrant workers in Malaysia, Singapore, and Australia.
“Currently, MyCash on average performs 70,000 transactions per month, which is worth more than US$3.5 million. Last year, we achieved more than 200% year-on-year growth.
MyCash is currently in talks with existing investors and regional VCs to raise between US$3 million [RM12.56 million] and US$5 million [RM20.94 million] in a Series A round. This is mainly to grow its business in the Middle East, especially in the UAE and Saudi Arabia, where there is a substantial migrant population.