financial inclusion

Over 7 in 10 loans made by banks are extended to corporates– leaving 15 million SMEs and self-employed workers with little access to traditional finance.

Thanks to the pandemic, the uncertainty of the world economy has been especially devastating  for those living on the poverty threshold and struggling to make ends meet. Many in this  demographic lost much-needed jobs as the economy shrunk, while others hustled on the side, for  example, as food sellers, to continue to put bread on the table. 

Bangladesh has established its position as a pioneering country to have made significant strides towards financial inclusion and its vision ‘Digital Bangladesh’. The country’s recent development in its financial sector, varied heritage in credit and microfinance, widespread adoption of digital finance and mobile financial services (MFS) are recognized at a global level. The government’s effort to consider financial services as drivers of shared prosperity and inclusive growth. Access to financial services and their usage have significantly positive impacts on the socioeconomic outcomes that are perceived by businesses and households. Moreover, this access and usage are considered as essential factors to poverty eradication.

Over half of both unbanked and banked individuals feel that they are underserved, Mambu’s study found.