The results of a recent survey, which found that only 22% of adults in Bangladesh have bank accounts, stresses the need to make banking services more accessible throughout the country.
According to the study, Bangladesh ranked sixth among seven developing countries in the number of adult account-holders, with nearly half the accounts inactive.
These findings are a clear indication that financial inclusion needs to be a top priority of the government as well as banking sector regulators. Bank accounts can allow the poor and marginalised to save, borrow, and invest, thereby actively involving them in our economic growth. What is more, extending banking services to more remote areas would bring millions of cash transactions into the banking system.
While the micro-finance industry has helped to bring banking services to a large section of the poor, banks themselves must make sure clients are not discouraged by cumbersome procedures. Besides a lack of money, excessive paperwork is also a reason why many people choose not to open accounts.
It is crucial that our banking industry formulate a structure that not only accommodates but attracts lower-income depositors. That so many citizens do not have access to basic banking benefits is unacceptable, and something the government should waste no time in amending.