More than two-thirds of Bangladeshis lack a formal financial account. This means that more often than not, they rely on cash, which can be both risky and costly. “You’re potentially just a natural disaster away from all of your cash savings in your house being wiped away,” Josh Woodard, technical advisor for mSTAR’s Bangladesh team, says.
[Please note that FHI refers to FHI 360 in this podcast.]
However, in Bangladesh, there’s a clear opportunity to address this. The country is pretty much entirely covered by mobile networks and more than half of the population owns a mobile phone. This combination makes digital financial services a perfect way to break down barriers to financial inclusion.
Over the past three years, the mSTAR/Bangladesh team has directly assisted eight USAID implementing partners in transitioning to digital payments, and they’ve seen tremendous success. As of June 2016, four of the implementing partners have made around US $1.51 million in digital transactions, all of which were previously done using cash. Most of those transactions were made to individuals who were previously unbanked or underbanked.
To continue this success and further the conversation on increasing financial inclusion, mSTAR’s Bangladesh team is joining BRAC, CARE International, Ecobank Foundation and other leading organizations as a partner in this year’s Financial Inclusion Week, hosted by the Center for Financial Inclusion. Financial Inclusion Week is a global conversation exploring the most important steps to full financial inclusion. This year’s theme is keeping clients first in a digital world.
mSTAR/Bangladesh’s conversation will focus on how different actors, from financial service providers to government programs, can support the development, promotion, and uptake of digital financial services that are aligned to the needs, capacities, and aspirations of the financially excluded in Bangladesh.
Josh Woodard, mSTAR’s Regional ICT and Digital Finance Advisor, describes the innovative ways mSTAR/Bangladesh is focusing on clients to advance financial inclusion in this first episode of Digital Development Leaders, a podcast by mSTAR and FHI 360’s TechLab.
Take a listen to Josh explain how mSTAR/Bangladesh is staying ahead of trends, focusing on clients, and innovating to increase financial inclusion. Please note that “FHI” is said in the podcast and is meant to refer to “FHI 360.”
Josh was also interviewed recently by the Aid and International Development Forum (AIDF) about emerging trends in technology, check it out below.