Prospects of Digital Financial Services in Bangladesh in the Context of Fourth Industrial Revolution

Abstract

This paper attempts to reveal the prospects of Digital Financial Services (DFS) in Bangladesh by introducing associated concepts-fourth industrial revolution, digital economy, and digital financial services. Required data and information was collected primarily from the numerous sources of a secondary resource. It finds that Bangladesh has achieved remarkable progress in mobile phone penetration and secured among the top four countries advancing towards the digital economy rapidly. The country has tremendous prospects of DFS ahead; it will bring impressive economic growth and reduce poverty with huge strategic opportunities through connecting and using cutting edge technologies of the 4th industrial revolution. Bangladesh's government’s effective policy reforms, digital Bangladesh’s vision, and the a2i program ran by the Prime Minister Office made this boom in spreading digital financial services. It was projected by Bangladesh Bank and Light Castle that the MFS trend will be grown consistently; there will be 407 million clients and BDT 121 billion will be transacted in 2022. Challenged IT infrastructures, few regulatory and operational constraints including digital illiteracy are considered as the barriers to using the full potentials of digital financial service. In realizing the goals of Sustainable Development Goals (SDGs), the article will be useful for policy-makers, academia, learners, policy advocates, experts, and stakeholders of digital financial services.