Inclusive financing digital financial services (DFS) in Bangladesh and the case of bKash

Abstract

Financial inclusion (Bright Helms, CGAP, 2006) refers to the accessibility and availability of a range of financial services to all individuals and businesses, regardless of their socioeconomic status. Bangladesh's had started inclusive financing in early 1970s, but institutional away Micro Finance Institutes (MFIs) was working from 1980s (Muhammad Yunus, 2007), followed by the advent of Digital Financial Services (DFS) in 2011 (Impact of Mobile Financial Service in Bangladesh, The Case Study, BIDS, 2020), which was earlier known as MFS and Agent Banking in 2013. These services are regulated by the central bank of Bangladesh. This study will deal with three research problems and gaps, firstly, why MFIs digitization process is not working first; secondly, why interoperability is not growing firster between MFIs, MFS and Agent Bank, examine existing policy and reality; thirdly, the study aims to analyze the operational and financial performance of the DFS sector and a case of bKash. The core methodology will be followed case study and ethnography i.e., qualitative. Case study is an empirical inquiry that investigates a contemporary phenomenon in depth and within its real-life context, especially when the boundaries between phenomenon and context are not clear, (Yin, 2009). To understand inclusive financing i.e., macro, and micro both sides. The result of the study will help to create three impacts, firstly, to reduce financial exclusion and provide banking services to the unbanked population; secondly, to enhance the knowledge of rural financial landscape for interpretability among the inclusive financial service; thirdly, it will create new knowledge and best practice case of Inclusive financing. This study contributes, to ensures interoperability and digital Bank (MFIs, MFS or DFS, Agent Banking) i.e., breezing rural financial architecture and mainstream banking. To achieve the national goals, cashless society in Bangladesh. This study will be useful for DFS operators, regulators, policy makers and academic.