How youth are reshaping MFS in Bangladesh

Mobile Financial Services (MFS) have significantly altered Bangladesh's financial landscape, but their most transformative impact is evident among the country's youth. For many young people, mobile wallets have become the primary gateway to financial activity, offering a level of accessibility and convenience that traditional banking systems often fail to provide.
Platforms such as bKash, Nagad, and Rocket now play a central role in how young Bangladeshis manage daily expenses, receive payments and conduct peer-to-peer transfers. Students, freelancers and early-career earners increasingly rely on MFS to handle financial transactions efficiently, reducing dependence on cash and physical bank branches.
The widespread use of MFS among the youth has encouraged a culture of micro-transactions and digital expense tracking. Easy access to transaction histories allows users to monitor spending behaviour in real time, fostering greater financial awareness. This digital transaction data also holds potential for developing alternative credit assessment models, particularly for individuals without formal banking histories.
MFS has further enabled income opportunities by removing geographic and institutional barriers. Young entrepreneurs, online sellers and service providers can now participate in the national economy with minimal startup costs. This inclusion is particularly significant for those who may not yet meet the requirements of conventional financial institutions.
Despite these advantages, challenges persist. High transaction convenience does not automatically translate into sound financial planning. Many young users remain unfamiliar with savings instruments, digital security risks, and long-term financial strategies. Additionally, the limited integration of investment and credit products within MFS platforms restricts their role in wealth creation.
To maximise the long-term benefits of youth-driven MFS adoption, financial institutions and regulators should focus on expanding value-added services. Introducing micro-savings schemes, low-risk investment options, and transparent digital credit facilities could strengthen financial resilience among young users. Equally important is promoting targeted digital financial literacy programmes.
The growing reliance on Mobile Financial Services among Bangladesh's youth reflects a broader structural shift in the financial ecosystem. As this demographic trend continues to shape consumption and income patterns, MFS will remain a critical driver of financial inclusion and economic modernisation in the country.

Nuzhat Tabassum
North South University
nuzhat.tabassum05@northsouth.edu