Social dynamics of mobile financial services in BD

The proliferation of mobile financial services (MFS) in Bangladesh marks a transformative moment in the country's socio-economic and technological trajectory. Since the launch of bKash in 2011 and the subsequent rise of similar platforms like Rocket, Nagad, and Upay, Bangladesh has experienced a rapid digital shift in financial behaviours, particularly among the previously unbanked and rural populations. What began as a technological innovation has evolved into a profound sociological phenomenon, influencing norms of financial inclusion, gender relations, class dynamics, migration patterns, and rural-urban connectivity.

At the heart of this transformation is the democratisation of financial access. Bangladesh's traditional banking infrastructure struggled to penetrate remote rural areas for decades. Long queues, cumbersome paperwork, and the need for formal identification often excluded low-income people from accessing basic financial services. Mobile financial services, facilitated through ubiquitous mobile phones and supported by an extensive network of agents, have broken through these barriers. The ability to send and receive money with just a few taps has turned mobile phones into economic tools and social equalisers.

This financial inclusivity has profound sociological implications. One of the most prominent is empowering marginalised groups, particularly women. In rural households, women are now more likely to control their savings, receive remittances directly from migrant family members, and manage household budgets. With increased financial autonomy comes enhanced decision-making power within families, contributing to subtle shifts in gender dynamics. Furthermore, the privacy and immediacy of mobile money transactions reduce women's dependence on male family members for financial mobility, creating opportunities for entrepreneurship and small-scale business ventures.

The sociology of mobile financial services also intersects with internal migration and the remittance economy. Bangladesh is a country where rural-to-urban migration is a defining demographic trend. Migrant workers in urban centres or abroad often rely on mobile money to send earnings back home. This practice has reshaped family structures and dependency networks. Remittances no longer require long waits at banks or reliance on bus drivers carrying cash. Now, they arrive instantly, strengthening familial ties despite geographic separation. This has led to a new form of digital kinship, where emotional bonds are sustained through financial exchanges facilitated by technology.

In addition to family and gender dynamics, mobile financial services subtly influence class structures. Access to mobile money reduces the transaction costs of participating in the economy. Small traders, rickshaw pullers, farmers, and domestic workers can save money securely, access emergency loans, or even pay utility bills without intermediaries. This newfound financial literacy and capability elevate their economic agency, narrowing the class divide regarding access to financial tools. However, the rapid adoption of these technologies also highlights new digital divides. While mobile phone penetration is widespread, disparities in digital literacy, especially among older adults and the extremely poor, can limit the full inclusivity of MFS platforms.

The sociological effects of mobile financial services also extend to informal economies and labour markets. Informal vendors increasingly use digital wallets to accept payments, whichhas grown rapidly, especially in the post-COVID-19 context where contactless payments became necessary. This digitisation of everyday transactions legitimises informal workers and contributes to formalising economic activities that traditionally operated beyond state regulation. As a result, mobile money becomes a financial tool and a mechanism for integrating informal labour into the broader economic system.

The adoption of MFS has also prompted shifts in trust and social capital. Traditionally, Bangladeshis relied heavily on personal networks, kinship ties, and local community leaders for financial transactions. The emergence of agent networks and customer service centres introduces new intermediaries of trust. Agents-often local shopkeepers or known community members-play a dual role: They provide financial services and act as brokers of trust between impersonal technology and personal lives. This relationship shapes new forms of social trust, where community reputation and technological reliability intersect.

Furthermore, the state's role in regulating and promoting MFS introduces another sociological layer. The Bangladesh Bank has been instrumental in setting guidelines for mobile money operations, balancing innovation with financial stability. The state's endorsement of platforms like Nagad, in collaboration with the Bangladesh Postal Service, signals an official commitment to financial inclusion. However, as more economic activity moves to digital platforms, questions of surveillance, data privacy, and regulatory control arise. This tension between empowerment and oversight becomes a key sociological question in understanding the implications of digital finance.

Religious and cultural attitudes also play a role in using and accepting mobile financial services. While MFS platforms are mainly secular, their adoption and adaptation within society are mediated by prevailing cultural norms. For instance, some Islamic scholars have raised concerns about Sharia Compliance with interest-bearing mobile savings accounts or digital lending. In response, several providers have introduced Sharia-compliant services, reflecting how mobile finance must negotiate cultural and religious values to gain wider acceptance. These negotiations mirror broader societal debates about modernity, tradition, and the role of technology in everyday life.

The rise of mobile financial services has also significantly influenced youth culture. For digitally native younger generations, especially in urban areas, mobile money is part of a broader digital ecosystem, including social media, e-commerce, and gig work. Students use MFS to pay tuition, buy online goods, or earn money through freelance work. This culture of digital participation is redefining the meaning of financial independence and responsibility for Bangladesh's youth, potentially reshaping intergenerational expectations and consumer behaviours.

Despite its transformative potential, the sociology of mobile financial services in Bangladesh is not without challenges. Issues such as digital fraud, agent overcharging, SIM card loss, and poor grievance redress mechanisms can erode trust in the system. For some users, especially first-time adopters, navigating USSD codes or smartphone apps remains intimidating. These challenges highlight the need for sustained digital education, user-friendly interfaces, and stronger consumer protection frameworks.

Moreover, as mobile money becomes central to financial life, it raises critical questions about exclusion. Who gets left behind in the digital revolution? Elderly citizens, persons with disabilities, and those in ultra-poor categories may find themselves further marginalised unless deliberate efforts are made to include them. The sociology of exclusion thus becomes as essential as that of inclusion in understanding the complete picture of mobile financial services.

Mobile financial services in Bangladesh are more than just technological conveniences-they are catalysts of social transformation. They touch every aspect of life: from how families interact, how gender roles evolve, how classes are negotiated, to how communities construct trust and resilience. They represent a dynamic interplay of technology, society, and policy, reflecting the complexities of a rapidly digitising nation. As Bangladesh continues its journey toward digital financial inclusion, the sociological dimensions of this transformation will remain central to understanding the real-life experiences of its people in an increasingly interconnected world.

Dr Matiur Rahman is a researcher and development worker.

matiurrahman588@gmail.com