Digital Frontiers Impact Assessments: Case Study of Bangladesh Bank

 

On 5 June 2024, Eden Dema (Independent Consultant), Mohammad RASHED (Additional Director, Bangladesh Bank), Md Ashraful Alam (Managing Director, Bangladesh Bank) and our Tariro Nyimo (Head Stakeholder Engagement & Fundraising, Digital Frontiers) unpacked the outcomes of Digital Frontier’s Impact Assessment on capacity built in Bangladesh Bank in a webinar hosted by Digital Frontiers. The study is based on a qualitative research methodology, drawing on primary and secondary data sources. The primary data sources include interviews and focus group discussions with key stakeholders, including Bangladesh Bank officials, financial sector experts, and digital financial service providers. The secondary data sources include policy documents, reports, and statistical data from the Bangladesh Bank and other relevant institutions.

Bangladesh has the highest number of Certified Digital Finance Professionals (CDFPs), with 800 individuals trained in the country. The purpose of the case study was to evaluate the impact of DFI’s capacity building programmes on Bangladesh Bank’s officials, policymaking skills, translating to inclusive policy and regulatory initiatives to promote digital financial inclusion in Bangladesh.

The study analysed policy interventions, regulatory reforms – as introduced by DFI alums – and market dynamics to identify the tangible contributions made by Bangladesh Bank in promoting an inclusive digital financial services ecosystem in Bangladesh. Two of the impact areas identified were CMSME (Cottage, Micro, Small and Medium Enterprises) Financing Policy Reforms and Inclusive Payments Systems Policy Reforms.

The study concludes that BB’s digital financial inclusion policy initiatives, introduced through the DFI Alums, have positively impacted financial inclusion in Bangladesh and contributed to the country’s transition to a “Smart Bangladesh” by 2041. The positive impact was found specifically effective on women, youth and people living in rural areas, however there is still an underserved issue.

During the webinar, the engaged audience posed some questions about the experience with regulators in Bangladesh, capability of Bangladesh Bank in regulating digital bank and the general impact on youth financial inclusion which Ashraful and Rashed were able to delve deeper into.

To learn more about how DFI programme enhanced knowledge and skills and positively contributed to financial inclusion in Bangladesh by watching the webinar on our YouTube channel, or read the full case study here.