Exploring the Digital Financial Service in Bangladesh: Unraveling the Dynamics of Trust, Fear, and Privacy

ABSTRACT The main objective of this research is to understand the dynamics of trust, fear, and privacy in the onboarding process for digital financial services (DFS) that have been playing a crucial role in bringing unbanked and underbanked populations into the formal financial ecosystem. The study employed qualitative data collection methods, including in‐depth case interviews, key informant interviews, focus group discussions, and observation, with diverse individuals from urban, semi‐urban, and rural areas. Results showed that the onboarding pathway into DFS comprises three phases—pre, during, and post—and involves trust, fear, and privacy, which are context‐dependent. Understanding the local dynamics of trust, fear, and privacy is crucial to comprehending the onboarding process, considering the collective nature of Bangladeshi culture, where privacy for sharing private information is a major concern. Findings would be an important guideline for service agents, development practitioners, and policymakers to foster financial inclusion.