Credit for low- and moderate-income people in Bangladesh—can new-age banks and FinTechs deliver the regulator’s wish?
The waves of digitization and technological advancements have led to the opening of MFS accounts for 60% of the population in Bangladesh. The country now boasts more than 1.1 million agents. Despite the widespread use of MFS and internet access, only 9.1% of people access the formal credit system. Digital credit can be a stepping-stone in Bangladesh due to the lower cost of delivering credit through digital means, combined with the mass digital readiness of consumers. Several solutions have emerged from banks, NBFIs, FinTechs, MFSPs, MFIs, and development partners, such as City Bank’s “Nano Loan” product pilot to Prime Bank’s loan product for blue-collar workers. Together, stakeholders are trying to forge partnerships to address problems around access to credit and social development in Bangladesh.
Is it the right time to push for wallet interoperability in Bangladesh?
Covid-19 is impacting people’s lives in multiple ways. With restrictions on movements and fear of getting infected, people are staying homes. While this is the right thing to do, one still need to purchase household essentials and send money to relatives who need it. Essential services industries also need constant cash flows and payments. Jamal […]