




































Asian Finance & Banking Review; Vol. 2, No. 2; 2018 

ISSN 2576-1161   E-ISSN 2576-1188 

Impact Factor: 3.3  

Published by Centre for Research on Islamic Banking & Finance and Business 

 

 

14 
 

Whither Financial Inclusion? Performance of Bangladesh in the 

2017 Global Findex 

 

 

    Sajid Amit
1 

 

 

 
1
Director, CES, University of Liberal Arts, Dhaka, Bangladesh  

Correspondence: Sajid Amit, Assistant Professor & Director, Center for Enterprise and Society, University of 

Liberal Arts, Dhaka, Bangladesh. Email: sh2367@caa.columbia.edu. Tel: +880-2-966-1255. 

 

To cite this article: Amit, S. (2018). Whither Financial Inclusion? Performance of Bangladesh in the 2017 Global 

Findex. Asian Finance & Banking Review, 2(2), 14-18. Retrieved from 

http://www.cribfb.com/journal/index.php/asfbr/article/view/12 

 

Received:  August 9, 2018                 Accepted: August 13, 2018                       Online Published: August 15, 2018   

 

 

Abstract 

On April 19, 2018, the third Global Findex Database was released by the World Bank at the Bank’s Spring 

Meetings. According to CGAP, this dataset is “the financial inclusion community’s best demand-side measure of 

financial inclusion globally.” Overall, the dataset points to an increasingly inclusive financial world that is also 

transitioning to a digital economy. Bangladesh, too, made impressive gains in certain yardsticks for financial 

inclusion based on this dataset. For instance, the share of people with financial accounts increased from 29 percent 

to 41 percent, in three years. However, financial inclusion yardsticks should go beyond opening of bank and 

financial accounts and also encompass usage of accounts. It is only when people are actively using their accounts 

will we have meaningful financial inclusion. 

 

Keywords: Financial Inclusion Global Findex, Bangladesh. 

 

1. Background 

On April 19, 2018, the third Global Findex Database was released by the World Bank at the Bank’s Spring 

Meetings. According to CGAP,
i
 this dataset is “the financial inclusion community’s best demand-side measure of 

financial inclusion globally.”
ii
 Queen Maxima of the Netherlands, a strong and vocal proponent of financial 

inclusion,
iii

 opined, “For those of us committed to advancing financial inclusion, no tool is of greater value than the 

Global Financial Inclusion (Global Findex) database.”
iv
 

Launched with funding from the Bill & Melinda Gates Foundation, the Findex database now has three years of time 

series data available, for 2011, 2014, and 2017, which can tell a compelling tale on access to financial services over 

the past 6 years. In terms of methodology, the research consists of nationally representative surveys of more than 

150,000 adults, age 15 and above, in over 140 countries. The survey was conducted in collaboration with Gallup, 

Inc. The final dataset is publicly available on the World Bank Group website, on which this article is based.  

Overall, the dataset points to an increasingly inclusive financial world that is also transitioning to a digital economy. 

Between 2014 and 2017, 515 million adults globally opened some sort of formal financial institution account.
v
 



 
 

www.cribfb.com/journal/index.php/asfbr                Asian Finance & Banking Review         Vol. 2, No. 2; 2018 

15 
 

While financial inclusion has taken great strides, nearly half of all unbanked adults live in just seven economies, 

including Bangladesh (Fig 1).  

 

2. Performance of Bangladesh 

However, Bangladesh, too, made impressive gains in certain yardsticks for financial inclusion. For instance, the 

share of people with financial accounts increased from 29 percent to 41 percent, in three years. This may appear to 

be high and is an outcome of the fact that the World Bank definition of a financial account included bank accounts 

or accounts at other financial institutions such as microfinance institutions, cooperatives, and credit unions.  

Those without a financial institution account were asked their reasons for not owning one. About 62 percent cited 

insufficient funds as a reason for not owning a financial account. Other reasons frequently cited include “someone in 

the family has an account,” “financial services are too expensive,” “financial institutions are too far away,” and 

“lack of necessary documentation” (Fig 2).  

 

 

Moreover, while 50 percent of Bangladeshi males have a financial institution account, only 32 percent of females do 

(Fig 3). The growth for males over the last 3 years is 17 percentage points while the growth for females is 7 

percentage points. This is interesting given that the World Bank measure of a financial account includes 

microfinance institutions, the primary account holders for which, are women. This may indicate that the more recent 

Bangladesh 
3% China 

13% 

India 
11% 

Indonesia 
6% 

Mexico 
3% 

Nigeria 
4% 

Pakistan 
6% 

Rest of the 
World 
54% 

Fig 1: Adults w/o FI account by economy 
(percent) 2017 

0% 10% 20% 30% 40% 50% 60% 70%

Lack of necessary documentation

Religious reasons

Insufficient funds

No need for financial services

Fig 2: Reasons for not owning an FI 
account 

Source: Global Findex Database 



 
 

www.cribfb.com/journal/index.php/asfbr                Asian Finance & Banking Review         Vol. 2, No. 2; 2018 

16 
 

progress in financial inclusion may have been driven more by mobile money accounts than by microfinance 

accounts.  

 

Looking at remittance-related data, a more positive picture emerges. The share of people sending or receiving 

remittances increased from 19 percent to 29 percent, according to the Findex data. Among those who sent 

remittances, the share of senders who used a financial institution account increased from 9 percent to 17 percent. 

Meanwhile, senders who used a mobile phone to send remittances increased from 33 percent to an impressive 69 

percent. Senders who sent remittances in cash and using in-person delivery, decreased from 53 percent to 23 percent 

(Fig 4). Clearly, remittance sending is moving from informal to institutional channels, which bodes well.  

 

Significant gains have also been made with respect to paying utility bills through a financial institution account. 

Among those who paid utility bills, the share of those who paid through an account increased from 4 percent to 31 

percent. This is indicative of the growth potential of agent banking in Bangladesh as agents are encouraged to collect 

utility bills as a way of generating revenue for themselves, outside of the banking services they promote.  

In general, in the realm of digital, significant gains are noticeable. For instance, in three years, share of people with 

mobile money accounts increased seven times, from 3 percent to 21 percent (Fig 5). Share of people who made or 

received digital payments increased from 7 percent to 34 percent.  

0%

10%

20%

30%

40%

50%

60%

70%

80%

Male Female

Fig 3: Breakdown of FI Account Ownership 

Ownership of FI Accounts Growth in 2014-17 (Percentage Points)

Source: Global Findex Database 

0% 20% 40% 60% 80%

Using a financial institution

Using a mobile phone

In person and in cash only

Fig 4: Preferred Channels for 
Remitting 

2017 2014
Source: Global Findex 

Database 



 
 

www.cribfb.com/journal/index.php/asfbr                Asian Finance & Banking Review         Vol. 2, No. 2; 2018 

17 
 

 

However, there is a persistent gender gap in the realm of digital financial services as well. Although the ownership 

of mobile money accounts among women has increased five times in the last three years, it is still at 10 percent, 

compared to 32 percent for men (Fig 6).  

 

In addition to such persistent inequalities, there is considerable scope for improvement with respect to usage of 

accounts. Usage clearly trails access and financial inclusion cannot be merely about increasing the number of 

accounts but also ensuring people are using their accounts. Among those with a financial account, people who made 

deposits went down from 60 percent to 51 percent (Fig 7). Cumulatively, the share of people who made withdrawals 

or deposits stayed about the same.  

 

 

0% 5% 10% 15% 20% 25% 30% 35% 40%

Mobile money account ownership

Made or received digital payments in
the past year

Received digital payments in the past
year

Made digital payments in the past year

Fig 5: Digital Financial Services Usage 

2017 2014
Source: Global Findex 

Database 

0% 5% 10% 15% 20% 25% 30% 35%

Total

Male

Female

Fig 6: Mobile Money Account Ownership 

2017 2014

0%

20%

40%

60%

80%

Deposit in the past year No deposit and no withdrawal in
the past year

Fig 7: Insufficient Usage of FI 
Accounts 

2014 2017
Source: Global Findex 

Database 



 
 

www.cribfb.com/journal/index.php/asfbr                Asian Finance & Banking Review         Vol. 2, No. 2; 2018 

18 
 

3. Conclusion 

Referring to the 2017 Global Findex, Ms. Greta Bull, CEO of CGAP and a Director at the World Bank Group, had 

to say, “I have been working in the financial inclusion industry for 18 years, and I have never seen the kinds of gains 

in access we have seen over the past decade. It is an exciting time to be involved in financial inclusion.”
vi
 While that 

certainly may be the case, and the focus on financial inclusion by governments and the private sector appear to be 

intensifying globally, it is important to take stock of both the achievements and the areas for improvement. Recent 

progress around the world and in Bangladesh have been driven by a mixture of a push towards digital payments, 

favorable government policies, and a new generation of financial services accessible via mobile phones and the 

internet. Globally, companies pay wages in cash to hundreds of millions of unbanked adults. A transition to an 

electronic payroll could help these workers join the formal financial system and also ensure transparency and 

accountability of the financial function at these companies. This is true for Bangladesh as well. For instance, if the 

large Ready-made Garments (RMG) manufacturers adopted such initiatives at digital transformation, millions could 

benefit in the long run. Certain international donor-funded projects that are working with agent banking units of 

private commercial banks are trying to encourage banks to adopt such practices. Last but not the least, all 

stakeholders involved ought to prioritize the focus on usage of accounts. It is only when people are actively using 

their accounts will we have meaningful financial inclusion, and the impact of ongoing efforts will be fully realized. 

 

References   

                                                           
i
 CGAP (the Consultative Group to Assist the Poor) is a global partnership of more than 30 leading organization 

that seek to advance financial inclusion. It is housed at the World Bank.  
ii
 Bull, Greta. (2018). New Global Findex: What You Need to Know. CGAP Blog. Available at: 

http://www.cgap.org/blog/new-global-findex-what-you-need-know 
iii

 Her Majesty Queen Máxima of the Netherlands is UN Secretary-General’s Special Advocate for Inclusive 

Finance for Development and Honorary Patron of the G-20’s Global Partnership for Financial Inclusion.  
iv
 Demirgüç-Kunt, Asli, Leora Klapper, Dorothe Singer, Saniya Ansar, and Jake Hess. 2018. The Global Findex 

Database 2017: Measuring Financial Inclusion and the Fintech Revolution. Washington, DC: World Bank. 
v
 Data on adults with a financial institution account include respondents who reported having an account at a bank 

or at another type of financial institution, such as a creditunion, a microfinance institution, a cooperative, 

or the post office (if applicable), or having a debit card in their own name 
vi
 Bull, Greta. (2018). New Global Findex: What You Need to Know. CGAP Blog. Available at: 

http://www.cgap.org/blog/new-global-findex-what-you-need-know 
 
 
 
Copyrights 

Copyright for this article is retained by the author(s), with first publication rights granted to the journal. 

This is an open-access article distributed under the terms and conditions of the Creative Commons Attribution 

license (http://creativecommons.org/licenses/by/4.0/) 

 


