Exploring the Role of FinTech through Mobile Financial Services towards a Cashless Society in Bangladesh

Authors/ Publisher: Md Belal Uddin

Abstract:

Purpose: The primary purpose of this study is to investigate the transformative impact of financial technology (FinTech), with a specific focus on Mobile Financial Services (MFS), on the progression towards a cashless society in Bangladesh. This research aims to analyze how MFS is reshaping financial transactions, enhancing financial inclusion, and driving socio-economic changes in the country.

Objectives: This article aims to achieve several key objectives: assessing the reach of Mobile Financial Services (MFS) among various demographic groups, and pinpointing the main factors that drive the adoption and sustained use of MFS. Additionally, it seeks to understand how MFS grants access to financial services for unbanked and underbanked populations. It also evaluates the extent to which MFS diminishes the reliance on cash for everyday transactions and identifies the obstacles and challenges to realizing a completely cashless society through MFS.

Method: This study employs a quantitative research approach, gathering data through questionnaires and conducting a survey with 106 participants, comprising both younger and middle-aged individuals. The objective was to gain insights into the factors that influence their adoption of various cashless payment methods. The Friedman test and Kendall's W test were executed to justify the hypothesis.

Result: This article effectively demonstrates the positive impact on economic growth through simplified transactions that require minimal technological expertise, reduced costs associated with handling cash, and convenient and secure transaction processes. It also highlights how these factors contribute to greater financial inclusion, paving the way for a cashless society.