Mobile Financial Services in Bangladesh: An Empirical Study of its Usage

This study explores the usage of mobile financial services (MFS) in a developing country like Bangladesh, where many underprivileged people who lack proper financial literacy and have no bank accounts are getting formal financial services through MFS. It investigates whether or not the electronic modes of MFS usage impact cash-based MFS usage. Secondary data on MFS usage in Bangladesh have been studied. The autoregressive distributed lag (ARDL) model has been applied to analyze the time series data. The results show that electronic modes of MFS usage negatively and significantly impact cash-based MFS usage. This study fills the gap in the literature with an empirical study at a country level using historical data of category-wise MFS usage instead of relying on users’ opinions. The analysis of this study can serve as a basis for strategic decision-making for policymakers, regulatory authorities and industry players and allow MFS providers to explore innovative approaches in response to the changing dynamics of the market.