The recent memorandum of understanding (MoU) signed by the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF) has the potential of having a lasting impact on the digital financial ecosystem of the country. The partnership -- overseen by the government’s a2i program -- aims to intervene in policy and regulations, innovations, infrastructure, and skill to facilitate the achievement of Sustainable Development Goals (SDGs).
While Bangladesh has come far when it comes to meeting our economic ambitions, a significant portion of it has been done on the back of large scale, export-oriented businesses that rely on traditional means. Given that the world is on the verge of the fourth industrial revolution that will shift the focus on financial and digital literacy, the need for change and adaptability is greater than ever.
This is where this particular memorandum will come into play. One of the key goals of the partnership is protecting the rights and access of marginalized people when it comes to digital finance, especially for women entrepreneurs -- all but ensuring the uplifting of these marginalized people through better access and training. There will also be an emphasis on using the grants, loans, and other facilities of UNCDF to cater to and uplift small scale businesses that don't meet the eligibility criteria of traditional financing methods.
On that note, a2i's financial innovation lab called "FinLab BD" will also be an asset to the country, as it will provide necessary support to develop fintech focused start-ups, which will help mitigate the challenges the marginalized community faces with regard to financial access and other financial challenges. It is also noteworthy that they also are putting special emphasis on training our CMSMEs -- something that has been a long time coming.
Kudos on the government for taking such pro-active measures. The government needs to look for and facilitate future partnerships like this in order to strengthen the digital financial sector of the country.