The Covid-19 pandemic could bring in great opportunities for digital financial services in a post-pandemic world, although Bangladesh has held some challenges regarding success in digital innovations in financial services, stakeholders at a webinar said on Monday.
The webinar was titled “Digital Innovations in Financial Services: The Key to Success in a Post Covid-19 World”.
At the webinar, economists, bankers and business people suggested that the country needed to move fast with facilitative regulations, risk management framework, digital infrastructure, effective data analytics and adequate capacity.
The webinar was jointly organized by Resurgent Bangladesh Initative and Deloitte. Resurgent Bangladesh is an economic recovery initiative in the context of Covid-19, which was established by five institutions – MCCI, DCCI, CSE, BUILD and Policy Exchange.
Metropolitan Chamber of Commerce and Industry (MCCI) President Barrister Nihad Kabir moderated the webinar.
Sanjoy Datta, Financial Services Industry Leader, Deloitte South Asia, presented the keynote paper at the webinar.
He said consumer spending and consumption preferences had changed with the outbreak of the coronavirus. Consumer confidence in the financial services sector had been under threat and the government and regulatory authorities had become more active owing to the pandemic, he added.
Association of Bankers, Bangladesh (ABB) chairman and Eastern Bank managing director Ali Reza Iftekhar said digital means would help reduce cost and enhance capacity to reach out to customers.
He said the coronavirus had created the scope for digital financial services. Most private banks had already launched digital service products amid the virus that resulted in increased digital transactions in the last two months.
Iftikhar urged the Bangladesh Bank to accept digitized return submissions by banks.
Dmoney Co-Founder Sonia Bashir Kabir said the pandemic had shown a trend towards better digitization and digital financial services.
Regulatory framework and more access to the internet were very important for digital financial services, she added.
Sonia Bashir Kabir said both the new generation and cottage and micro industries could be better served through enhanced applications of digital technology in financial services.
BKash Chairman Shameran Abed said BKash was already supporting transactions of 7.5 lakh BRAC microfinance clients. He expected the transaction volume to double in a year.
Chittagong Stock Exchange Chairman Asif Ibrahim stressed the need to put more focus on a digitization of the capital market with digital financial services.
Financial Institutions Division Senior Secretary Md. Ashadul Islam said the government fully supported digital finance and stood ready to go ahead with any necessary legal and regulatory adjustments.
He underscored the need to enhance the capacity of the government with the support of the private sector.
Policy Exchange Chairman Masrur Reaz stressed that Covid-19 had expedited a shift towards digital financial services that had already been helping to advance financial inclusion.
He said as the country had made great strides in financial development, embracing digital finance at a faster pace would further help address recent challenges in the banking sector.
Bangladesh Bank Director Aftabul Islam said Covid-driven changes were real, suggesting that moves towards digitizing financial services must be taken without any delay.
Deloitte Bangladesh Executive Advisor Sharif Islam spoke about the commitment of the world’s largest professional services firm to partner with the government and businesses for strengthening the financial services industry and revitalizing the country’s economy for sustained high rate of growth in the years ahead.
