The Metropolitan Chamber of Commerce and Industry (MCCI) Dhaka has proposed a series of recommendations to enhance Bangladesh’s digital financial services (DFS) ecosystem. These suggestions include integrating mobile financial service providers with the National Payment Switch of Bangladesh (NPSB), establishing independent credit-scoring agencies, and launching digital banks to address gaps in financial inclusion.
The recommendations were presented during a seminar on the digital financial ecosystem, jointly organized by MCCI and the Policy Research Institute in Dhaka. The chamber emphasized the need to tackle critical challenges in the DFS sector, particularly limited access to financial services across the country.
In his keynote presentation, Habibullah N Karim, senior vice-president of MCCI, highlighted that 72% of the population aged 15 and above remained unbanked, pointing to the significant financial inclusion gap. Despite the widespread adoption of mobile financial services, Karim noted that MFS cannot fully meet the country’s banking needs, especially in rural areas where digital infrastructure is lacking.
The report also underscored the issue of poor internet connectivity outside major cities, with an average mobile internet speed of 38.09 Mbps in August 2024—well below neighboring countries such as India and Vietnam. The lack of network stability and access in remote regions further hinders the expansion of financial services.
Another significant barrier to financial inclusion is the lack of financial literacy, particularly in rural areas. Low awareness and distrust in digital platforms have slowed adoption, while concerns over cybersecurity and fraud in digital transactions prevent users from embracing DFS solutions.
To address these issues, MCCI’s recommendations call for a multi-stakeholder approach. The chamber suggested integrating mobile financial services with the NPSB to improve transaction efficiency. Additionally, it urged the government to support the development of digital banks and establish independent credit-scoring agencies. These agencies could help underserved groups, such as farmers, small businesses, and gig workers, access loans by utilizing alternative data such as utility bills and mobile usage records.
To foster e-commerce growth, MCCI emphasized the importance of implementing escrow systems to reduce fraud and build trust between consumers and businesses. Bangladesh’s e-commerce market, valued at $7.9 billion in 2024, has the potential to grow to $17.6 billion by 2028 with these safeguards in place.
Despite the rapid rise of mobile financial services—making Bangladesh the fourth-largest global user of MFS—the DFS ecosystem faces structural challenges. Many platforms still lack interoperability, and CMSME loans from banks and financial institutions fell by 13.10% during the April-June quarter of the 2023-24 financial year compared to the previous year.
Kamran T Rahman, president of MCCI, stressed the importance of collaboration among the government, private sector, financial institutions, technology providers, and civil society in bridging gaps in the DFS ecosystem. He concluded, “We can create a regulatory framework by working together that balances innovation with customer protection, ensuring that the financial sector continues to grow while safeguarding the interests of all users.”
