The growing wealth inequality in societies is making it harder to reduce poverty and also increasing the vulnerability of financial systems in developing countries like Bangladesh.
To this end, experts suggest collaboration of banks with technology-driven companies like MFSs and telcos, innovative products for marginalised people and better governance in the operation of financial institutions.
They made the observations at the first day's plenary session of the three-day 'Bay of Bengal Conversation 2024' being hosted by the Centre for Governance Studies (CGS) at a city hotel on Saturday.
The session styled 'Resilient Banking, Inclusive Growth: Tackling Inequality and Poverty in a Divided World' was moderated by Faris Hadrovic, managing director of CBD d.o.o. Bosnia and Herzegovina.
City Bank managing director Mashrur Arefin, Max Group chairman Ghulam Mohammed Alomgir, Romania-based Ubuntu World Consulting founder Ana Maria Paraschiv, Rajasthan University's South Asia Studies Centre's former director and emeritus fellow Karori Singh, and Türkiye-based KI Asset Management Company CEO Kyle Inan spoke at the session.
Mr Arefin spoke of different banks in Bangladesh working seamlessly to bring the unbanked population under the banking system where mobile financial services (MFSs) are playing a vital role.
Explaining the role, he said the collaboration between MFS and banks were paving the way for financial inclusion through products like nano-loan.
"The result is yet to reach a desired level in the country," said Mr Arefin, sharing his experience in some African countries.
He underscored the need for collaboration between banks and other technology-driven companies like MFSs and telcos to take banking services to the doorsteps of marginalised people.
On the other hand, Mr Alomgir said: "If anyone wants to destroy a country, s/he should destroy its education, judiciary and financial sectors." Highlighting the domestic banking sector, he says bankers are now coming to businesses unlike before, indicating the scope for honing business.
According to Mr Alomgir, shareholder should not intervene in daily activities of banks for their day-to-day operations.
Meanwhile, Mr Singh said inequality was on the rise in many countries, while poverty reduction measures were inappropriate leading to its prevalence.
"In many parts, we consider relief measures as a tool for poverty eradication, which is not correct," he told the international event.
On the other hand, Ms Paraschiv talked about circular and green economy, calling for Bangladesh to bolster collaboration with the private sector for green energy.
[email protected]
