The Potential of Using Digital Financial Services for Savings Groups in Bangladesh

The primary goal of this assessment was to increase understanding of the structure of savings groups in Bangladesh, which are mainly represented by lower-income populations, as well as the financial behavior (both savings and expenses) of members of those savings groups, in order to identify opportunities that may exist for leveraging digital financial services. The assessment looked into the challenges facing different savings groups with regards to cash management, required level of effort to manage a savings group (cost and time), literacy, and exposure to financial services.

The assessment also looked into the existing savings products and services that are being used by savings groups and informal savings and expense behaviors at an individual level. Learnings from this assessment can provide guidance in formulating group savings products and increase understanding of how digital financial services can be used to bring about the efficiency regarding delivery of these products. It also aims to provide mobile financial service providers with additional information about the poorest segment of the population and the value of targeting this segment through additional services.