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Building the business case for e-KYC through MSC’s role in advancing digital onboarding in Bangladesh

  • calendarSep 8, 2025
  • time 2 min

As part of a broader agenda to enhance financial inclusion and strengthen regulatory compliance, Bangladesh has accelerated the adoption of electronic Know Your Customer (e-KYC) processes across its financial sector. The Bangladesh Financial Intelligence Unit (BFIU), in collaboration with the International Finance Corporation (IFC), set out to develop a strong business case to support the nationwide rollout of e-KYC. The goal was to provide evidence on the operational benefits of digitized onboarding systems and encourage financial institutions to move away from manual processes.

MSC was engaged to conduct a comprehensive baseline study of customer onboarding practices across various financial institutions, which includes banks, mobile financial service (MFS) providers, insurers, and capital market entities. The study measured customer acquisition costs, evaluated onboarding durations, and assessed the operational efficiencies enabled by digital processes. Through this assessment, MSC generated clear, data-driven insights to guide financial institutions in transitioning from traditional to digital KYC systems. The findings also served as a strategic input to help stakeholders understand the economic and procedural advantages of e-KYC adoption.

The study played a key role in reinforcing the case for scalable e-KYC implementation across Bangladesh’s financial ecosystem. By quantifying cost savings, streamlining customer acquisition, and identifying efficiency gains, MSC’s work empowered financial institutions with the knowledge needed to modernize their onboarding systems. It also supported regulators in shaping a cohesive vision for secure, efficient, and inclusive customer verification practices. The findings are expected to contribute significantly to expanding access to formal financial services across the country.

This project was commissioned by the United Nations Development Programme (UNDP).

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