Page 260 - India Insurance Report 2023- BIMTECH

248 India Insurance Report - Series II

2.1 Financial Products Driving Financial Inclusion in Bangladesh

The accessibility and availability of financial services to individuals and businesses, particularly
those underserved or excluded from the traditional banking system, is referred to as financial inclusion.
Several financial products and services have been developed in Bangladesh to encourage financial inclusion.
Here are a couple of such examples:

A. Mobile Banking : In Bangladesh, mobile-based financial services such as bKash, Rocket, and Nagad
are rising in popularity, offering money transfers, bill payments, savings accounts, and access to
numerous financial products (Financial Express, 2022).

B. Microfinance : Microfinance institutions (MFIs) provide low-income individuals and enterprises who
do not have access to regular banking services with small loans, savings accounts, and other financial
services. Grameen Bank, BRAC, and ASA are a few examples (Monzur et al., n.d.).
C. Agent Banking : Agent banking entails the use of authorized agents or small-scale entrepreneurs who
operate as mediators, offering basic banking services in rural locations where regular bank offices
are sparse. On behalf of banks, these agents enable currency deposits, withdrawals, and other activities
(Bangladesh Bank, 2021).

D. Digital Wallets : Companies like as SureCash, Payza Bangladesh, and iPay offer digital wallet services,
allowing people to store and transfer money electronically, make payments, and access numerous
financial services via their mobile phones (Deshiz, 2022).

E. Microinsurance : Microinsurance products are designed to provide low-income individuals and
vulnerable groups with affordable insurance coverage. These plans frequently include health, life,
livestock, and crop insurance, shielding individuals from unforeseeable dangers (Wing, 2021).
F. Savings Groups : Community-based savings groups, such as Village Savings and Loan Associations
(VSLAs), enable individuals to save money together and obtain small loans inside the group. These
organizations promote financial discipline and provide a network of support for financial activities
(Fairooz, 2023).

G. Agricultural and Rural Financing : Banks and institutions such as the Agricultural Development
Bank offer specialized financial products aimed at farmers and rural communities, such as agricultural
loans, crop insurance, and other financial services tailored to the needs of the agricultural sector
(Bangladesh Bank, n.d.).

H. Remittance Services : Remittances from abroad employees are considerable in Bangladesh. Various
remittance service providers, such as banks and money transfer operators, make it possible to send cash
from abroad to beneficiaries in Bangladesh in a secure and effective manner (Bangladesh Bank, n.d.).

It is essential to note that the availability and specific features of financial products in Bangladesh
may differ across areas and institutions. Furthermore, the regulatory framework and financial landscape
are dynamic, therefore, it is recommended to investigate and explore the country’s most recent offerings
and initiatives for thorough information on available financial products supporting financial inclusion.