What is financial inclusion and why is it important for the lower and moderate-income (LMI) segments of society?
Financial inclusion means that individuals and firms have access to a variety of affordable financial products and services that they need.
"Bangladesh is now a role model for the world in terms of using digital services to improve the lives of lower and moderate income segments." - Mr Mustafa Jabbar, Minister of Post, Telecommunication & IT
What ecosystem-level infrastructure improvements are needed for digital financial services to be delivered effectively to the last-mile customer?
Some of the barriers that were highlighted in the event:
- Lack of financial literacy
- Lack of interoperability among the wallets
- Lack of innovation in use-cases
- Account opening requirements
What drives the business case for the private sector and the government to use digital solutions to serve to serve low and moderate income (LMI) customers?
Innovations in financial technologies can increase client outreach and reduce transaction costs to nearly zero.
“Basic access to banking services and products still remains a challenge in Bangladesh. Financial service providers and FinTechs can leverage technology and the need to find the right product mix to reach the remaining half of the adult population who do not have an account at a financial institution.” - Mr Manoj Sharma, Director, MicroSave Consulting (MSC)
MSC will be doing a series of posts that will focus on examining in detail the aforementioned barriers and the role of technology in leveraging a meaningful financial inclusion for Bangladesh. We look forward to continued dialogue, learning and doing more to support the financial inclusion space of Bangladesh.