Bangladesh far behind global average in financial inclusion

Despite making progress in financial inclusion, Bangladesh still lags far behind the global average, Jean Pesme, division director for Bangladesh and Bhutan at the World Bank, said yesterday.

Currently, 43 percent of the Bangladeshi population owns financial service accounts, while the global average is 73 percent, Pesme said without citing any report.

Speaking at the closing ceremony of the Buyer-Seller Summit 2025, he also emphasised that financial inclusion is especially important for women entrepreneurs. The event was jointly organised by the SME Foundation and the World Bank Group, Bangladesh, in the capital's Agargaon.

Pesme said account ownership facilitates savings, wage receipts, remittances, and access to credit, all of which are essential for economic growth and resilience.

"While 90 percent of adults own mobile phones and two-thirds use the internet, only 70 percent use mobile financial services (MFS), and just 40 percent of these accounts are active," he added.

The WB division director also noted that Micro, Small, and Medium-sized Enterprises (MSMEs), particularly startups, often lack access to traditional collateral. "It is crucial to explore alternative credit assessment methods, such as the use of credit bureaus, to reduce reliance on immovable assets."

"By addressing these challenges through digital financial services, diversifying funding sources, and improving financial infrastructure, we can empower MSMEs, foster financial inclusion, and unlock the full potential of the sector, which will be pivotal for Bangladesh's continued economic growth and development," he added.

Emphasising the importance of MSMEs to Bangladesh's economy, Pesme said the sector represents about 30 percent of GDP, a similar share of the labour force, and accounts for 75-80 percent of export earnings.

These enterprises also play a vital role in the value chains of larger industries, which is why improving their performance is essential to the country's economic development, he added.

Also speaking at the event, Industries Adviser Adilur Rahman Khan said the Buyer-Seller Summit 2025 will enhance entrepreneurs' confidence, open up new markets, and strengthen buyer-seller relationships.