---

Bangladesh has made strong gains in financial inclusion, powered by rapid growth in digital financial services, agent banking and microfinance, according to a central bank review of the sector up to December 2024.

Mobile financial services led the expansion, with transaction values rising 32.02 per cent year-on-year to Tk 1.64 trillion in 2024. The number of MFS accounts grew 8.3 per cent to 238.6 million, supported by a nationwide network of 1.83 million agents, signalling a steady shift towards a cash-light, digital-first economy.

The central bank said the financial system remains highly diversified, spanning banks, non-bank financial institutions, microfinance institutions, capital market intermediaries, mobile financial service providers, insurers and cooperative societies.

Digital payments gained further traction during the year. Internet banking recorded the fastest growth, with transaction volumes jumping nearly 75 per cent and transaction values rising about 99 per cent. Average transaction sizes also increased, indicating growing confidence among individuals and businesses in using online platforms for larger payments. The number of banks offering internet banking services also edged up.

Point-of-sale transactions rose sharply as well, with both volumes and values posting strong growth, reflecting wider acceptance of electronic payments in retail and services.

Agent banking continued to deepen access, particularly in rural areas. More than 21,000 outlets were operating nationwide, with over 85 per cent located outside urban centres. Female ownership of agent outlets reached 50 per cent, marking a milestone in gender inclusion. Agent banking now serves over 24 million accounts, holding deposits of Tk 419 billion.

Basic financial access also expanded through no-frill accounts, which climbed to 31.08 million by December 2024. Nearly 70 per cent of these accounts were held in rural areas, underscoring the focus on underserved communities.

Credit to cottage, micro, small and medium enterprises improved, with disbursements reaching Tk 626 billion. A growing share went to cottage and micro-enterprises, supporting small-scale businesses and employment.

Progress was also evident in gender and youth inclusion. Female-owned deposit accounts increased by 8.48 per cent to 55 million, while school banking programmes gained momentum with 4.38 million accounts opened nationwide. Rural students accounted for more than half of these accounts, and female participation stood at nearly 49 per cent.

The microfinance sector remained a key pillar of inclusion, serving more than 42 million clients, mostly in rural and low-income segments. Registered MFIs disbursed around Tk 2.62 trillion in loans up to FY24, with nearly half directed to agriculture.

Capital market intermediaries and insurers also played a growing role by promoting financial literacy, digitising systems and extending services to women, youth and people with disabilities. The number of capital market intermediaries rose to 1,234 by December 2024.

The report said implementation of the National Financial Inclusion Strategy showed steady progress, with 69 per cent of targets fully achieved and another 28 per cent partially met. However, it cautioned that gaps remain, particularly in technology adoption.

To address these challenges, the central bank recommended stronger digital and financial literacy programmes, expanded digital infrastructure, improved interoperability, better access to credit for MSMEs and informal workers, stronger consumer protection and the integration of climate-resilient finance. Close coordination among regulators, financial institutions and technology providers was highlighted as critical to building a sustainable and inclusive financial system.