UNCDF SHIFT commissioned MSC to conduct a study on the status of digitization in the microfinance sector in Bangladesh. Along with the interventions that MFIs will undertake, the sector also needs policy-level changes that enable the digitization of microfinance institutions. This policy brief presents the challenges that the microfinance sector in Bangladesh faces and interventions that would create an enabling environment for digital transformation.
Digital transformation of MFIs in Bangladesh opportunities, challenges and way forward
With the entry of FinTech firms in Bangladesh and the government’s aim to build an inclusive digital financial ecosystem, it is now imperative for the microfinance sector in Bangladesh to move towards digital transformation. UNCDF SHIFT commissioned MSC to conduct a study on the status of digitization in the microfinance sector in Bangladesh. This report examines the status of digitization in the microfinance sector in Bangladesh, technology options, and the next steps towards digital transformation.
Gender centrality of mobile financial services in Bangladesh
This consumer behavior research aims to investigate why this is so, examining the gender centrality in digital financial services (DFS) in Bangladesh. The study focused only on mobile financial services as the most prevalent form of DFS in Bangladesh.
Microfinance represents a hallmark of modern development initiatives. Widespread claims from the sector assert that it offers a sustainable solution to poverty, supported by an impressive 99% repayment rates.
Each month, SAJIDA foundation, an NGO in Bangladesh receives loan repayments from almost 10,000 clients across five of their branches using mobile money. These repayments record roughly 25,000 transactions totaling BDT 50 million (around USD 600,000).