Assessing the Opportunities of the Retail Credit and Digital Financing Landscape in Bangladesh

LightCastle Analytics Wing
July 31, 2022
Assessing the Opportunities of the Retail Credit and Digital Financing Landscape in Bangladesh

The Opportunity

Bangladesh, the 37th largest economy in the world, boasts an annual GDP growth rate of 6.8 percent in 2022. With a growing Middle and Affluent Consumers population and a young, tech-savvy demographic, the country is expecting to experience a continued rise in consumption. Complementing these changes is the growth in digital and financial inclusion, with more than half of 90 million unique mobile users using the internet, and 32.3 million people having a Mobile Financial Service (MFS) account. This puts the country in an ideal position to leverage the opportunities of retail credit, particularly digital credit, to boost consumption across the country. Mapping out the digital financing landscape in Bangladesh will create a pathway for the development of this market.

Learn about Digital Financial Inclusion from our webinar

Click to know more

With this opportunity, LightCastle Partners on behalf of a Singapore-based tech startup conducted a study to assess the retail credit landscape in Bangladesh. The study was commissioned to take a deep dive into the financial system in Bangladesh by analyzing the current state of the financial landscape to subsequently derive a viable strategy for the client to enter the Bangladeshi market.

Want to learn more about Market Entry Strategy?

See Our Service

The Approach

The study undertook a mixed-method approach to seek a holistic view of the retail credit and digital financial market. To get a representative understanding, LightCastle Partners combined primary and secondary research tools to map an overview of the supply-side of retail and digital credit in the market. The team conducted Key Informant Interviews (KII) with stakeholders from regulatory bodies, financial institutions as well as embedded finance and Fintech players. The team further conducted in-depth focus group discussions with consumers of different segments to identify the demand for digital financing. Additionally, the study used data from various secondary sources such as the Household Income and Expenditure Survey (HIES) 2016, the World Bank Data, GSMA Report, Bangladesh Bank, and Microfinance Regulatory Authority.


The Future

The objective of the study was to gain an understanding of the retail credit market in the country, synthesize the insights from key stakeholders and obtain a comprehensive understanding of the demand for digital financing through the consumers. The key findings of the study were analyzed and validated to ultimately map out the landscape and identify the challenges and possibilities. Additionally, the study provides comprehensive insights on the success cases to ultimately state the strategic recommendations for market entry.

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a systemic and data-driven approach to create opportunities for growth and impact. We are an international management consulting firm which creates systemic and data-driven opportunities for growth and impact in emerging markets. By collaborating with development partners and leveraging the power of the private sector, we strive to boost economies, inspire businesses, and change lives at scale.

For further clarifications, contact here: [email protected]

Want to collaborate with us?

Our experts can help you solve your unique challenges