Bangladesh toward Digital Financial Inclusion: FinTech Experience

Abstract

Digitalization in financial services, in another way financial technology or FinTech, has drastically extended financial intermediation while customers are experiencing and engaging with the development of new digital products and competencies. Nevertheless, over two billion people worldwide remain out of accessing financial services that make financial inclusion an equally important concern for all economies, including Bangladesh. Over the last few years, a good number of academic literature has been made on FinTech covering how essential it is to serve the unbanked and underbanked countries. This study tries to provide an inclusive survey of relevant literature on FinTech and its potential to disruptive financial intermediation globally and nationally. Therefore, a descriptive research design has been adopted entirely based on secondary resources and mostly relying on the Global Findex database, International Monetary Fund (IMF) releases, and Bangladesh Bank reports. It has been evident that digital financial inclusion is connecting more and more people to the financial system at a growing pace resulting in substantial welfare benefits throughout the nation. Even if the active use of mobile money systems, digital banking, especially internet banking, is reshaping our bank. However, there is much work to be done compassing the challenges and the threats of FinTech as important policy issues for the existing financial landscape. In conclusion, this study provides an insight into the country's digital financial system and contributes to further study in relevant disciplines.

Fintech-Based Financial Inclusion in Bangladesh

“…A significant portion of the adult population remains unable to benefit from official financial products and services due to factors such as inadequate income, a minimum account balance requirement, insufficient financial knowledge and understanding, and a lack of a technological facility, particularly in the countryside and suburban communities. Simultaneously, a shortage of resources in terms of material wealth, workforce capacity, and business skills among service providers is exacerbating the existing financial inclusion gap (Ahmed & Hasan, 2021).…”

“…But very few are stressed on the exploration of challenges to implement and attainment. Study conducted by Ahmed and Hasan (2021), Rahman et al (2021), and Aziz and Naima (2021) have tried to assess and overviewing the scenario and challenges of digital financial inclusion in Bangladesh. But they used primary data which were both qualitative and quantitative.…”