‘Bangladesh becoming more financially inclusive, but still more work to be done’

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‘Bangladesh becoming more financially inclusive, but still more work to be done’​

There are 60 million unbanked individuals in Bangladesh, and 60% of them require assistance to use bank accounts

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Tanveer Mohiuddin
January 15, 2023 9:12 AM

South Asia appears to be trailing behind other regions in the world in terms of the number of people who are becoming financially inclusive.

Since approximately 75% of males have an account with a bank, microfinance institution, or mobile banking, the gender gap is a problem, according to research from the Brac Institute of Governance and Development (BIGD).

Prior to 2017, Bangladesh had one of the widest gaps in the world, but it is now progressively closing. India, China, Latin America, and other regions of Asia contributed to the rise at that time.

BIGD, in partnership with The World Bank, organized the launch of the Findex 2021 Bangladesh findings. An event titled: “The Future of Financial Inclusion: Presenting the Findex 2021 Bangladesh Findings" was held on January 15 at the Brac Centre in the capital.

World Bank Economist Saniya Ansar presented the Findex 2021 Bangladesh findings.

The study was conducted by WEE-DiFine, a research initiative that conducts research across South Asia, Sub-Saharan Africa and Southeast Asia in an effort to produce a comprehensive body of evidence about the relationship between women's economic empowerment (WEE) and digital financial services (DFS).

There are 60 million unbanked individuals in Bangladesh, and 60% of them require assistance to use bank accounts.

The study identifies a few of the obstacles that prevent people from opening accounts with financial institution.

Some of the reasons cited included people's preferences for mobile money, a lack of required documentation, confidence, the cost of financial services, and cultural hurdles.

It's interesting to note that 86% of account holders in the country use digital payments, a number that increased during the Covid-indused lockdowns when doing so was actually encouraged.

After the Covid-19 outbreak began, over 66% of utility bill customers made digital payments, a considerable rise from 2017.

The study found that the percentage of adults who sent digital remittances increased from 13% in 2017 to 32% in 2021.

Dr Khondoker Shakhawat Ali, emeritus fellow, Unnayan Sammanny and Dr Sayema Haque Bidisha, professor, Department of Economics, University of Dhaka also spoke.

The event was moderated by Mehnaz Rabbani, head of Operations, Strategic Engagement and Partnership at BIGD, with a feature presentation on BIGD's WEE-DiFine Initiative.