Bangladesh has made significant progress in expanding financial inclusion, driven largely by rapid growth in digital financial services, agent banking and microfinance, according to a Bangladesh Bank report.
In its review of the country's financial inclusion landscape up to December 2024, the Bangladesh Bank (BB) report said mobile financial services (MFS) transactions surged to Tk 1.64 trillion in 2024, marking a 32.02 per cent rise over the previous year.
On the other hand, total number of MFS accounts rose by 8.3 per cent to 238.6 million, according to the Ban, according to the central bank.
Such expansion was supported by a nationwide network of 1.83 million MFS agents, reflecting Bangladesh's steady shift toward a cash-light, digital-first economy, it mentioned.
The country's financial sector remains highly diversified, comprising 61 banks, 35 financial institutions, 703 microfinance institutions (MFIs), 1,234 capital market intermediaries (CMIs), 13 mobile financial service providers (MFSPs), 82 insurers, cooperative societies and other financial service providers.
Internet banking and point-of-sale (POS) services recorded notable growth during 2024, indicating rising consumer confidence in digital payment platforms.
The most significant transformation occurred in internet banking, where the number of transactions soared by 74.92 per cent, and the total value nearly doubled, rising by 98.84 per cent.
Moreover, the average transaction size also increased by 13.67 per cent, highlighting that both individuals and businesses placed greater trust in online banking for high-value transfers, the report said. The number of participating banks raised 9.80 per cent in this period, it added.
The number of POS transactions grew sharply by 48.23 per cent with the transaction values rising by 36.60 per cent, according to the report.
Agent banking also expanded substantially, with 21,248 outlets operating across the country until the period under review--85.6 per cent of them were located in rural areas.
Notably, female ownership of agent banking outlets reached 50 per cent, a milestone in gender inclusion.
Agent banking services now cover more than 24 million accounts, with deposits amounting to Tk 419 billion, the report said.
Efforts to include underserved populations were further reflected in the growth of no-frill accounts, which stood at 31.08 million by December 2024.
Nearly 70 per cent of such accounts were held in rural areas, underscoring the focus on expanding basic financial access beyond urban centres, according to the report.
Credit flow to cottage, micro, small and medium enterprises (CMSMEs) also improved, with loan disbursements reaching Tk 626 billion, it said, adding that a growing share of such loans went to cottage and micro-enterprises, supporting small-scale entrepreneurship and employment generation.
Gender and youth inclusion recorded encouraging progress as well. The Women's Financial Inclusion Data (WFID) showed that female-owned deposit accounts increased by 8.48 per cent, rising from 50.7 million to 55 million.
School banking programmes continued to gain momentum as 4.38 million accounts opened nationwide. Rural areas accounted for 53.28 per cent of the accounts, while female participation in school banking reached 49.02 per cent.
The microfinance sector remains a cornerstone of inclusive growth, serving over 42 million clients through daily loans and savings products, primarily targeting rural and low-income populations.
MFIs were using MFSP platforms to disburse loans and collect instalments, the BB report said, adding that MRA-registered MFIs disbursed around Tk 2.62 trillion in loans until the 2023-24 fiscal year, with nearly 49 per cent of the loans were allocated to the agricultural sector, supporting marginal and vulnerable communities.
Capital market intermediaries are also contributing to financial inclusion by promoting financial literacy, digitising monitoring systems, improving data interoperability and expanding access to digital financial services, according to the report.
The number of CMIs stood at 1234 until December 2024 compared to that of 1176 as of December 2023, the report revealed. Meanwhile, the insurance sector continued to play a positive role by extending coverage to underserved groups, including women entrepreneurs, youth and people with disabilities in remote and underdeveloped areas.
On the other hand, cooperative societies continue to support financial inclusion across both rural and urban communities, serving more than 12.52 million members, including 3.24 million women.
According to the report, implementation of the National Financial Inclusion Strategy (NFIS) showed steady progress, with 69 per cent of the targets fully achieved and 28 per cent partially met by December 2024.
However, technology adoption remained an area requiring further improvement, the BB said in its report. Despite having such progress, there remain some challenges in the sector, it mentioned.
To address these issues, the BB recommended targeted efforts to enhance digital and financial literacy, expand digital infrastructure and inclusive financial products, foster interoperability and improve access to credit for MSMEs and informal workers, strengthen consumer protection and integrate climate-resilient finance solutions.
Collaboration among regulators, financial institutions and technology providers has been emphasised to achieve the objectives of NFIS, universal access to quality financial services and to build a sustainable, resilient and inclusive financial ecosystem, the report added.
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