Assignment
Course Code: Fin 417
Course Title: FinTech
Submitted To:
Dr. Mohammad Reyad Hossain
Assistant Professor
Department of Innovation & Entrepreneurship
Faculty of Business & Entrepreneurship
Daffodil International University
Submitted by:
1. Jubaida Hoque Esha
221-11-1624
2. Shekh Jeba Tahshin
211-11-1630
3. Jannatul Maisha
221-11-1710
4. Jahidul Alam
221-11-1648
5. Inthakar Ul Islam Sakib
221-11-1463
Table of Contents
1. Introduction
2. Literature Review
3. Methodology (Delphi Method)
4. Findings and Analysis
5. Conclusion and Recommendations
6. References
Introduction
Background
Financial Technology, commonly known as FinTech, has become an important part of the financial world
in recent years. In Bangladesh, the FinTech sector is growing fast due to increased mobile phone use,
internet access, and government support for digital transformation. Many people now use mobile
financial services (MFS) to send money, pay bills, and buy goods without needing to visit a bank. Services
like bKash, Nagad, Rocket, and Upay have made it easier for people—especially those in rural and
remote areas—to access financial services.
This change has played a big role in making financial services more inclusive, meaning that people who
once had no access to banks can now be part of the formal financial system. FinTech is also helping
businesses grow by making payments faster and reducing the need for cash. In short, it is reshaping how
money moves in Bangladesh.
Objective
The main goal of this study is to understand the role of FinTech in Bangladesh using the Delphi Method,
which is a research approach that collects expert opinions over several rounds. This study will focus on
gathering insights from professionals in the FinTech industry, government, and academia to build a clear
picture of how FinTech is working in the country, what challenges it faces, and what opportunities lie
ahead.
Scope
This research will mainly focus on three key areas:
Financial Inclusion: How FinTech is helping unbanked and underbanked people access financial
services.
Transaction Efficiency: How digital platforms are making financial transactions quicker, easier,
and more secure.
Regulatory Impact: How government rules and regulations are helping or slowing down FinTech
growth.
Significance
FinTech is not just a trend—it is a powerful tool for change. In Bangladesh, it is helping reduce poverty,
improve the economy, and connect people to financial services like never before. By studying its role in
depth, this paper hopes to offer useful information to FinTech companies, banks, and policymakers. The
insights gained can help improve FinTech services, make regulations better, and guide future
developments in the financial sector.
Literature Review
4.1 Definition and Evolution of FinTech
FinTech means using technology to provide financial services in a faster, cheaper, and more user-
friendly way. This includes services like mobile payments, online banking, digital loans, and automated
investments. Globally, FinTech has changed how people manage money, shop, save, and borrow.
In Bangladesh, the journey of FinTech started around 2011 with the launch of bKash, a mobile money
service that allowed people to send and receive money using their phones. It was a major step in
improving access to financial services. Over time, other players such as Nagad, Rocket, and Upay
entered the market, each offering unique services. In recent years, government projects like Digital
Bangladesh and the National Financial Inclusion Strategy have further boosted the growth of FinTech by
promoting innovation and digital access.
Globally, the FinTech industry has evolved significantly over the years. This evolution can be segmented
into four distinct eras:
1. FinTech 1.0 (1866 – 1967):
The foundations of financial globalization were laid during this period. Innovations like the
telegraph, railroads, and steamships enabled the first wave of global financial services. The
establishment of Fedwire in 1918 marked a major milestone, allowing funds to be transferred
electronically using telegraph networks.
2. FinTech 2.0 (1967 – 2008):
The introduction of digital banking systems characterized this era. The first ATM was introduced
by Barclays in 1967, and banks began using mainframe computers for back-office operations.
The rise of credit cards and electronic stock trading platforms further transformed the financial
sector. Online banking emerged in the 1990s, enhancing customer convenience and access.
3. FinTech 3.0 (2008 – 2014):
The global financial crisis of 2008 played a pivotal role in reshaping the financial landscape.
Startups began leveraging technology to offer innovative financial services, challenging
traditional banking models. The emergence of smartphones and mobile apps led to the
proliferation of digital wallets and peer-to-peer payment systems.
4. FinTech 3.5 / 4.0 (2014 – Present):
This period witnessed the integration of advanced technologies like artificial intelligence,
blockchain, and big data into financial services. Regulatory bodies started adapting to the rapid
changes, introducing frameworks to support innovation while ensuring consumer protection.
Open banking and API-based ecosystems became prevalent, promoting transparency and
competition.
As of 2023, there are over 120 million active mobile financial service (MFS) accounts in Bangladesh
(Bangladesh Bank), showing how deeply FinTech is now a part of everyday life.
2.2 Key FinTech Innovations in Bangladesh
Digital Payments: MFS transactions reached BDT 11.39 trillion in 2022 (Bangladesh Bank, Annual
Report).
Blockchain Initiatives: Several financial organizations in Bangladesh, including Standard Chartered Bank,
Prime Bank, HSBC Bank, and bKash, have commenced the adoption of blockchain technology.
Additionally, a few agro-tech businesses, such as Krishi Swapno, have implemented the technology as a
trial project
Mobile and Agent Banking: Mobile banking in Bangladesh, or Mobile Financial Services (MFS), has seen
significant growth, with providers like bKash, Rocket, and others offering services like money transfers,
bill payments, and remittances, contributing to a more accessible and digital financial landscape. Agent
banking expanded to 15.34 million accounts by 2023, with 75% located in rural areas (BB, 2023).
Microfinance-Tech Integration: BRAC and other MFIs are digitizing their services to reach more clients
efficiently.
2.3 Challenges and Opportunities
KPMG & A2i (2023) reported key barriers:
Regulatory gaps and outdated frameworks
Cybersecurity vulnerabilities
Low financial and digital literacy, especially in rural regions
Funding limitations for early-stage startups
On the other hand, rising smartphone penetration (over 45% of the population by 2023), a youth-
dominated demographic, and government-backed programs like Smart Bangladesh Vision 2041 present
immense opportunities.
3. Methodology – Delphi Method
Expert Selection:
Experts were selected from the FinTech ecosystem including banking professionals, and academic
researchers.
Survey Design:
Three rounds were conducted:
Round 1: Open-ended questions about FinTech evolution, impact, and challenges.
Round 2: Experts ranked key factors and challenges.
Round 3: Final consensus achieved on future trends and market predictions.
Data Sources:
Primary data from surveys & interviews
Secondary data from Bangladesh Bank, World Bank, KPMG, and industry reports
Analysis Method:
Thematic analysis was performed to identify patterns across expert responses and validate them with
available research data.
4. Findings and Analysis
Round 1 Summary (Thematic Highlights):
FinTech has significantly evolved due to mobile adoption, government support, and digital
payment platforms.
Banks are the most positively impacted sector.
Emerging technologies like AI, blockchain, and big data will reshape the sector.
Round 2 Findings (Prioritized Insights):
Driving Factors:
Mobile phone penetration
Internet access
Regulatory improvement
Tech-savvy youth
Top Challenges:
Regulatory uncertainty
Lack of digital literacy
Infrastructure gaps
These match the findings from Hasan & Mahmood (2021), who emphasized policy rigidity and weak
cyber infrastructure.
Round 3: Consensus and Market Forecast
Upcoming Dominant Trends:
AI-based financial services
Open banking
Blockchain use in KYC and lending
Market Size & Growth Rate Prediction:
By 2030, the FinTech sector in Bangladesh is expected to reach a market size of over $10 billion, growing
at an annual rate of 20-25%, driven by the widespread adoption of digital payments, mobile financial
services, and emerging technologies like blockchain, Al, and big data.
FinTech Hub Potential:
Experts believe Bangladesh could become a regional FinTech hub, provided it enhances cybersecurity,
improves regulatory frameworks, and supports innovation funding.
5. Conclusion & Recommendations
Summary of Findings:
FinTech is driving financial inclusion, operational efficiency, and service innovation. Major growth is
observed in mobile financial services and digital banking.
Recommendations:
Policy Reform: Clearer and more adaptive FinTech regulations.
Digital Literacy Programs: Especially in rural areas, to expand reach.
Cybersecurity Infrastructure: Investment and capacity building.
Startup Funding: Government or private sector-backed seed funding.
Limitations:
The sample size of experts was limited. Further research could involve larger cross-industry panels and
regional data analysis.
6. References (APA 7th Edition)
Bangladesh Bank. (2023). Mobile Financial Services Data.
World Bank. (2022). Global Findex Database.
Hasan, M. M., & Mahmood, M. (2021). Barriers to FinTech Adoption in Bangladesh: A Regulatory
Perspective.
KPMG & A2i. (2023). FinTech Landscape in Bangladesh.
BCG. (2022). The Future of FinTech in Emerging Markets.
Mohiuddin, M., & Jahan, T. (2022). Exploring FinTech Growth Factors in Bangladesh.
Bangladesh Bank Annual Report (2023).