The Metropolitan Chamber of Commerce and Industry, Dhaka has recommended integrating mobile financial service providers with the National Payment Switch of Bangladesh, establishing independent credit-scoring agencies and launching digital banks to address gaps in financial inclusion to improve digital financial service or DFS ecosystem in Bangladesh.
The chamber made the recommendations in a seminar on digital financial ecosystem, jointly organised by the MCCI and the Policy Research Institute in the capital Dhaka on Sunday night.
The recommendations aimed to tackle significant challenges within the DFS ecosystem, particularly that of limited access to financial services in the country.
In the keynote presentation, Habibullah N Karim, senior vice-president of MCCI, showed that 72 per cent of the population aged 15 and above remained unbanked, highlighting the gap in financial inclusion.
鈥楧espite the high adoption of mobile financial services, MFS cannot fully meet the country鈥檚 banking needs, especially in rural areas where digital infrastructure is inadequate,鈥� the keynote mentioned.
The report also highlighted poor internet connectivity outside major cities as a barrier to expanding financial services.
Average mobile internet speed in Bangladesh was recorded at 38.09 Mbps in August 2024, far below those of neighbouring countries like India and Vietnam. Network instability and lack of access in remote regions further hindered progress, the report stated.
Another pressing issue is the lack of financial literacy among rural populations.
Limited awareness and trust in digital platforms slow adoption rates, leaving many without access to essential financial tools. Additionally, concerns over cybersecurity and fraud in digital transactions discourage users from fully embracing DFS solutions.
MCCI鈥檚 recommendations addressed these gaps with a multi-stakeholder approach.
Alongside integrating MFS with the NPSB to improve transaction efficiency, the chamber urged the government to facilitate the development of digital banks. Independent credit-scoring agencies were proposed to help underserved groups like farmers, small businesses and gig workers secure loans by using alternative data such as utility bills and mobile usage records.
To support e-commerce growth, the MCCI also emphasised the need for escrow systems to reduce fraud and build trust among consumers and businesses. Bangladesh鈥檚 e-commerce market, valued at $7.9 billion in 2024, has the potential to grow to $17.6 billion by 2028 with these safeguards in place.
Despite the rapid rise of mobile financial services鈥攑lacing Bangladesh fourth globally in MFS usage鈥攖he DFS ecosystem faces structural issues. Many platforms lack interoperability and CMSME loans from banks and financial institutions fell by 13.10 per cent during the April-June quarter of the 2023-24 financial year compared to the previous year.
Kamran T Rahman, president of the MCCI, stressed that collaboration among the government, private sector, financial institutions, technology providers and civil society was essential to bridging gaps in the digital financial services ecosystem.
鈥榃e can create a regulatory framework by working together that balances innovation with customer protection, ensuring that the financial sector continues to grow while safeguarding the interests of all users,鈥� he said.
