From cash to clicks: The digital transition of Bangladesh

In recent years, the remarkable evolution of technology has transformed the landscape of Bangladesh, a country once defined by poverty and vulnerability to natural disasters. Today, Bangladesh has positioned itself as a promising digital contender in South Asia. Technology is now integrated into various aspects of daily life—from governance, education, and finance to commerce—in pursuit of the country's vision of a "Digital Bangladesh."

Digital finance for all

The surge in digital financial services—led by platforms such as bKash, Rocket, and Nagad—has been pivotal in Bangladesh's digital transformation, making formal financial transactions accessible to previously unbanked populations.

Digital financial services (DFS) have been especially beneficial for rural communities, women, and informal-sector workers who once faced geographical and procedural barriers to banking. Mobile financial service (MFS) platforms such as bKash, Nagad, and Rocket are now household names, enabling millions to send and receive money securely within seconds.

The COVID-19 pandemic highlighted the true value of digital finance. Digital wallets played a crucial role in distributing government cash assistance, ensuring both transparency and accountability. Today, microbusinesses—often operating with limited capital—rely on mobile payments for everyday transactions, enhancing both security and liquidity.

According to Bangladesh Bank, there are more than 125 million MFS accounts, with a daily transaction value exceeding Tk 3,500 crore as of 2024. These platforms have promoted financial inclusion, bringing banking services to groups previously excluded, particularly rural and low-income populations.

E-commerce and start-ups

Over the past decades, Bangladesh's start-up culture has grown rapidly, propelled by a tech-savvy demographic and increasing internet penetration. From ride-sharing and grocery delivery apps to health tech, start-ups have become versatile solutions while generating significant employment opportunities.

E-commerce has ushered in a new era, with platforms such as Daraz, Chaldal, and AjkerDeal serving millions of online shoppers. Bangladesh's growing digital economy has also attracted foreign investment, fostering job creation and nurturing a generation of visionary entrepreneurs.

Recognising this potential, the Government of Bangladesh has launched multiple programmes to encourage entrepreneurship. Startup Bangladesh Limited, under the ICT Division, invests equity in promising businesses. Bangladesh Bank has introduced refinance schemes and urged commercial banks to provide young entrepreneurs with collateral-free loans, primarily in the ICT and e-commerce sectors.

Barriers to digital evolution

Despite significant progress, various factors hinder the adoption of digital services in rural households. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), internet penetration reached over 130 million subscribers by 2024. However, most high-speed broadband is concentrated in urban areas, leaving rural residents reliant on slower and less reliable mobile networks. A 2023 World Bank report found that nearly 40% of rural citizens still lack proper internet access, highlighting a persistent infrastructure gap.

Digital literacy remains another challenge. An Access to Information (a2i) survey found that only a third of rural citizens possess the skills needed to use smartphones or online portals effectively. Cost is also a barrier: for many low-income households, the expense of devices and mobile data constitutes a significant proportion of income. Furthermore, rising incidents of cybercrime and digital fraud have undermined trust, with Bangladesh Bank receiving over 5,000 mobile financial fraud complaints in 2023 alone. Addressing these issues requires not only expanded ICT infrastructure and affordable internet initiatives but also targeted training programmes and strengthened digital security systems to restore confidence in the digital economy.

The story of Digital Bangladesh is still being written. By ensuring that no community is left behind, the nation can harness technology not only for economic growth but also for social transformation and equality.

Zahraa Bint Zahid is a contributor

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.