ASSESSING THE ROLE OF MOBILE FINANCIAL SERVICES IN PROMOTING FINANCIAL INCLUSION IN BANGLADESH

Abstract

This research seeks to evaluate the impact of mobile financial services (MFS) on enhancing financial inclusion in Bangladesh. A quantitative research methodology was employed to survey a sample of 282 respondents, examining how factors such as digital literacy, mobile phone access, transaction fees, service awareness, and regulatory frameworks affect the utilization and efficacy of mobile financial services in promoting financial inclusion. The data was evaluated by descriptive statistics, reliability testing, and correlation analysis to investigate the links between different factors and financial inclusion results. The results indicate that digital literacy and mobile phone accessibility are crucial determinants of mobile financial services utilization, but transaction costs and regulatory frameworks significantly influence user behavior. Recognition of accessible services also surfaced as a crucial determinant in promoting MFS use, but it cannot alone surmount obstacles such as restricted mobile phone access and digital illiteracy. The research emphasizes the significance of robust regulatory rules in promoting trust and innovation in the MFS industry, hence enhancing financial inclusion. Nonetheless, the study’s shortcomings include its dependence on self-reported data and the cross-sectional design of the survey, which constrains the capacity to draw causal conclusions. Policymakers and mobile service providers must prioritize strengthening digital literacy, reducing transaction costs, and upgrading infrastructure to fully use the promise of mobile financial services in advancing financial inclusion. Socially, MFS may enhance access to financial services, especially in rural and disadvantaged regions, so fostering greater economic empowerment. This study provides significant insights for both scholars and professionals in the domain of financial inclusion and mobile services.