Credit access, insurance payments and savings thru MFS surge in BD

People's access to credit, insurance payments, and savings through mobile financial services (MFS) saw a significant increase in Bangladesh last year compared to the previous year, according to a recent global report.

The report highlighted that the number of mobile money users availing loans rose to 14 per cent in the past year, double the rate recorded in the preceding year.

Customers who used mobile money to pay for an insurance product in 2024 increased to 10 per cent from four per cent previously, said the report titled 'The State of the Industry Report on Mobile Money 2025'.

GSM Association (GSMA), a global non-profit trade association of mobile network operators, has launched the report recently.

The report said providing credit through mobile money was growing among the surveyed operators across the globe.

"Significant increases were seen in Indonesia, Nigeria and Bangladesh too," said the report, adding that use of mobile money for taking out a loan grew by 10 percentage points or more in several countries including Ethiopia, India, Pakistan and Uganda.

Regarding insurance payment through MFS, the report said: "The number of customers who used mobile money to pay for insurance in 2024 compared to 2023 grew significantly in Bangladesh, Ethiopia, India, Indonesia, Kenya and Nigeria."

The report also said savings through MFS among Bangladeshis also increased to 14 per cent in 2024 from 7.0 per cent previously.

Though registered mobile money accounts have reached two billion, a significant gender gap persisted, the GSMA said.

A gender gap in mobile money account ownership exists in eight of the 12 countries surveyed, the report said adding that the gap is particularly high in Pakistan, where women are 70 per cent less likely than men to have a mobile money account.

"The gender gaps are also wide in Bangladesh, Egypt, Ethiopia, India and Nigeria," it said.

"Several factors contribute to this gap such as not owning a phone, insufficient awareness about mobile money, a lack of perceived relevance or necessary knowledge and the skills needed to use mobile money," said the report.

According to the report, among the people surveyed, only 23 per cent female owned mobile money account against 52 per cent male counterparts in Bangladesh.

However, 67 per cent of female users are aware of mobile money against 82 per cent male, added the report.

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