In recent years, women in Bangladesh have been leveraging Mobile Financial Services (MFS) to drive economic empowerment and social development. The MFS boom has provided women with unprecedented access to financial tools, enabling them to manage their finances more effectively and contribute significantly towards their communities.
According to the Bangladesh Bank, as of 2023, women account for approximately 45 per cent of the total mobile financial services users in Bangladesh, translating to around 37 million female users. This staggering level of participation highlights the crucial role MFS plays in advancing financial inclusion among women.
The Bangladesh Bureau of Statistics, in its 2022 data, further showed that 60 per cent of women entrepreneurs in the country use MFS platforms to conduct their business transactions. This accessibility has empowered women to run their businesses more efficiently, contributing to the local economy and creating job opportunities.
The socio-economic benefits of MFS for women are manifold. One of the most notable impacts is on education and health. Several studies have shown that women who use MFS can better manage household finances, ensuring that there is enough money for their children's education and healthcare needs.
According to a 2021 report by the Consultative Group to Assist the Poor (CGAP), women using MFS are 30 per cent more likely to spend on their children's education and 20 per cent more likely to invest in healthcare when compared to those who do not use MFSs.
In rural areas, where traditional banking services are often unavailable, MFS provides a vital link to financial resources that support children's education and improve a family's health and nutrition.
Digital transactions through MFS have also facilitated the rise of women entrepreneurs. BB data from 2022 indicates a significant increase in the number of women entrepreneurs who use MFS for their businesses.
Specifically, around 70 per cent of women-owned small and medium enterprises (SMEs) in rural areas use MFS for various transactions such as paying employees, managing inventory, and receiving payments from customers.
This shift not only boosts their business's efficiency but also enhances financial inclusion by integrating more women into the formal economy. The rise of digital marketplaces and online transactions has particularly benefited women, who can now reach a broader customer base and operate businesses from their homes while balancing work and family responsibilities more effectively.
Challenges remain
Despite these advancements, challenges remain. Women in MFS often face barriers such as limited digital literacy, lack of access to smartphones, and cultural constraints.
However, initiatives by organisations such as the Women's World Banking Network are addressing these challenges by providing digital literacy training and advocating for policies that support women's access to MFS.
The leadership roles women occupy within the MFS sector are also noteworthy. Women in key positions within the MFS companies drive strategic decisions and shape the sector's growth. This leadership not only promotes gender equality but also enhances the performance and outreach of MFS providers.
Research by the Global Banking Alliance for Women shows companies with higher female leadership tend to perform better in terms of financial inclusion and customer satisfaction.
For instance, bKash, one of the largest MFS providers in Bangladesh, has reported a 25 per cent increase in female user engagement after increasing the number of women on their executive team.
The future of women in MFS looks promising, with continued advancements in technology offering new opportunities for expansion. Mobile banking and fintech innovations are making financial services more accessible to women in remote areas, further bridging the financial inclusion gap.
These digital solutions are essential for sustaining the positive impacts of MFS on women's lives and fostering a more inclusive economy.
The involvement of women in mobile financial services has had a profound impact on their economic empowerment and social well-being. By providing women with the tools to manage their finances, support their families, and grow their businesses, MFS has become a catalyst for change in Bangladesh.
The continued support and empowerment of women in this sector are vital for achieving sustainable development and gender equality. As the MFS technology evolves, it will undoubtedly play an even more significant role in enhancing the lives of women and their communities.
