MICROCAPITAL BRIEF: Gemalto Provides Biometric Smart Cards for “Prime Cash” Branchless Banking in Bangladesh

Gemalto, a digital security company based in the Netherlands, has developed a smart card-based system for two Bangladeshi businesses: Prime Bank Limited, a commercial bank founded in 1995, and Dipon Consultancy Services Limited (DCSL), a member of the Bangladesh-based conglomerate Dipon Group. The system will support the branchless banking service known as Prime Cash, which was established by the two firms in 2012. [1]

The smart card stores biometric information of the holder, including his or her facial image and fingerprint. This allows illiterate customers to utilize Dipon Group-ePay (DG-ePay) Service Points to access Prime Cash to deposit, withdraw and transfer money, as well as to open accounts, repay loans and send and receive remittances. There are 944 DG-ePay service points in Bangladesh in locations such as banks, stores, hotels and trade centers. DCSL has distributed approximately 200,000 of the cards.

As of 2012, Prime Bank Limited had BDT 236 billion (USD 3 billion) in assets, a profit of BDT 2.7 trillion (USD 34 million) and return on equity (ROE) of 13.43 percent [2]. Gemalto has operations in 43 countries worldwide and employs approximately 10,000 people. In the year 2012, Gemalto generated approximately EUR 2.2 billion (USD 2.9 billion) in revenue and EUR 306 million (USD 405 million) in profits. At the end of 2011, Gemalto possessed EUR 2.42 billion (USD 3.2 billion) in assets. Dipon Group is made of 10 companies in Bangladesh, India, Singapore, Malaysia and United Arab Emirates.

By Meghan Gillis, Research Associate

About Gemalto

Gemalto is a digital security company that develops software and operating systems such as biometric identification cards that can be used to identify bank customers. Headquartered in Amsterdam, the Netherlands, the company has operations in 43 countries. In the year 2012, Gemalto made approximately EUR 2.2 billion (USD 2.9 billion) in revenue and EUR 306 million (USD 405 million) in profits. At the end of 2011, Gemalto possessed EUR 2.42 billion (USD 3.2 billion) in assets.

Sources and Additional Resources

[1] National Post: “Gemalto delivers micro-banking technology in Bangladesh,” http://www.nationalpost.com/markets/news/Gemalto+delivers+micro+banking+technology+Bangladesh/8468777/story.html

[2] Prime Bank Limited, “Annual Report 2012,” https://www.primebank.com.bd/financial_report/Annual_Report_2012.pdf

MicroCapital brief, May 16, 2013, “MICROCAPITAL BRIEF: Bangladeshi Microfinance Institutions Boost All-Time Microcredit Disbursals to $2.7b,” https://www.microcapital.org/microcapital-brief-bangladeshi-microfinance-institutions-boost-all-time-microcredit-disbursals-to-2-7b/

MicroCapital brief, May 15, 2013, “MICROCAPITAL BRIEF: Pakistan’s Habib Bank Limited (HBL) Establishes Branchless Banking Service ‘HBL Express’,” https://www.microcapital.org/microcapital-brief-pakistans-habib-bank-limited-hbl-establishes-branchless-banking-service-hbl-express/

MicroCapital brief, March 25, 2013, “MICROCAPITAL BRIEF: BRAC Applies Microcredit Strategies to Water, Sanitation, Hygiene (WASH) Programme in Bangladesh,” https://www.microcapital.org/microcapital-brief-brac-applies-microcredit-strategies-to-water-sanitation-hygiene-wash-programme-in-bangladesh/

MicroCapital brief, April 23, 2013, “MICROCAPITAL BRIEF: Ingenico of France Launches Mobile Biometric Identification Service, iWB Bio Series,” https://www.microcapital.org/microcapital-brief-ingenico-of-france-launches-mobile-biometric-identification-service-iwb-bio-series/

MicroCapital brief, March 26, 2012, “MICROCAPITAL BRIEF: Bangladesh-based BRAC to Expand Microfinance, Heal, Education, Agricultural Projects in Tanzania,” https://www.microcapital.org/microcapital-brief-bangladesh-based-brac-to-expand-microfinance-health-education-agricultural-projects-in-tanzania/

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