Mobile Money Innovator Spearheads Financial Inclusion for Underserved Communities in Bangladesh

2 mins read

14 July 2023

Through its digital platform, Nagad provides easy access to financial services, empowering millions of unbanked individuals.

Nagad, the rapidly expanding mobile money carrier based in Bangladesh, has emerged as a key catalyst in propelling the country towards achieving sustainable development goals (SDGs) through its relentless efforts in fostering digital financial inclusion among underserved individuals.

Since the United Nations’ adoption of the SDGs in 2015, with a universal call for action to eradicate poverty, safeguard the environment, and ensure global prosperity by 2030, Bangladesh has made significant progress in various areas, including poverty eradication, education, health, employment, gender equality, and financial inclusion.

As a development partner working closely with the government, Nagad has taken a leading role in spearheading Bangladesh’s SDG agenda. Leveraging cutting-edge technologies and disruptive innovations, Nagad has successfully expanded access to financial services, particularly for the unbanked and underbanked population. Through its platform, individuals can effortlessly open digital accounts, conduct instant transactions, and avail themselves of a wide range of financial services. Notably, Nagad recently achieved a remarkable milestone of 80 million registered customers, with daily transactions averaging over USD 111 million.

This mobile financial services (MFS) carrier provides a secure and convenient method for individuals, particularly those in remote areas, to store money, transfer funds using mobile phones, and engage in economic activities. By empowering people who previously lacked access to traditional banking services, Nagad is driving financial inclusion, thus contributing to poverty alleviation and economic empowerment in the country.

Furthermore, Nagad has played a crucial role in digitalizing government-to-person (G2P) payments, including social safety allowances, education stipends, and other financial aid programs. By digitizing these payments, Nagad ensures faster, more efficient, and transparent disbursements, reducing leakage and ensuring prompt delivery of funds to the intended beneficiaries. To date, the company has successfully disbursed over USD 1.85 billion among beneficiaries, assisting the Bangladesh government in finding sustainable solutions to combat poverty and achieve food security.

One of Nagad’s notable achievements is its simplified account opening process, eliminating the need for paperwork. Individuals can now open accounts through e-KYC on smartphones or by simply dialing *167# on feature phones, resulting in a significant reduction in paper usage and a positive environmental impact.

Commenting on Nagad’s commitment to sustainable development, Tanvir A Mishuk, the founder and managing director of Nagad Limited, emphasized the company’s dedication to becoming a development partner to the government. Mishuk stated, “We believe that development should be sustainable. With this in mind, we have worked closely with the government as a development partner since entering the mobile financial market. Nagad actively contributes to at least nine of the seventeen SDGs.”

Recognizing the SDGs as a stepping stone towards realizing Bangladesh’s vision of becoming a Smart Bangladesh by 2041, Mishuk emphasized the pivotal role that Nagad will play in this transformative journey.

In conclusion, Nagad’s unwavering commitment to digital financial inclusion and its partnership with the government have positioned it as a vital force driving sustainable development in Bangladesh. By harnessing advanced technologies and innovative solutions, Nagad empowers the underserved population, contributes to poverty reduction, and facilitates economic growth, ultimately propelling the nation towards its SDG targets.

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