In today's increasingly changing economy, technology and finance have converged to become one, a new entity, FinTech, an acronym for Financial Technology. FinTech simply is a name for technology for simplifying and enhancing financial services. It's a name that covers all, including electronic wallets and mobile banking, lending, insurance, and even blockchain technology. FinTech has revolutionized the way humans manage money, making transactions speedy, less expensive, and easier. It's changing the way humans make investments and save and manage funds, too.
This technological revolution in finance is most important for developing countries like Bangladesh, in which a significant portion of citizens have negligible access to traditional banking channels. Poor communities and rural communities have no bank account and no access to credit in most cases. So, they become part of financial exclusion, and it can become a problem for them to save, receive a loan, and even conduct simple transactions such as buying and selling goods and services, etc.
FinTech offers a silver lining for such a problem. With mobiles becoming increasingly widespread in Bangladesh, FinTech tools can make banking and financial services accessible at one's fingertips. With mobile money services, including bKash, having already changed, one can pay, save, lend, and even send money with no bank in between. With such technology, financial inclusion can become a reality, and it can have a big impact on such individuals who have been out of its loop to date.
However, for FinTech to actually have a positive impact in Bangladesh, one must have an education. There is technology, but most, especially in rural communities, don't yet have a grasp of how to use it, and even don't trust it. Citizens not only have to learn about using FinTech platforms, but about the pros and cons of them, too. Otherwise, with no information, citizens will miss out on the positive impact that FinTech can have, and even fall victim to fraud.
Moreover, to access FinTech, one must have a financial management awareness in terms of savings, budgeting, and investing, for FinTech tools work best with a minimum level of financial awareness. For example, in case one doesn't have an awareness of budgeting, then even with a financial platform, one will not have a chance to utilize a platform for expense tracking, savings, and even planning for future life events such as weddings, holidays, and college funding.
Therefore, education in FinTech isn't simply a matter of instructing individuals in app use, but about providing them with information and confidence to manage their financial affairs in a better manner. Whether it's educating schoolchildren in school about managing money at its most basic level, or providing training sessions for adults in banking through technology, educating citizens can enable them to utilize the full capabilities of FinTech for enhancing lives.
Additionally, FinTech training not only extends to individuals but extends to companies and financial institutions that may resist and move at a slow pace in terms of adopting such technology. Bank employees, entrepreneurs, and even government employees have to become educated about FinTech in a way that will allow them to implement and sell its use effectively. In such a way, FinTech can become a ubiquitous feature in the financial environment, and its use can extend to all sections of society.
In developed nations, FinTech developed financial service industries at a breakneck pace, offering financial services such as electronic wallets, peer-to-peer lending, mobile payments, and blockchain transactions. FinTech developed, in large part, with a speedy financial service digitalization, particularly in response to heightened demand for accessible, efficient, and affordable financial alternatives.
For a country like Bangladesh, with a high unbanked population, FinTech brings financial inclusion through its doors. Approximately 60% of Bangladesh's population is unbanked, and rural areas suffer most in terms of access to conventional banking, with poor infrastructure and financial awareness checking them in developing a strong economy in such an area. With mobile payment platforms such as bKash, Rocket, and Nogod, sending payments, payment, and access to basic financial services have become convenient for citizens through mobiles, bypassing conventional banking infrastructure.
The Need for FinTech Education in Bangladesh: While the application of FinTech technology in Bangladesh is becoming a reality, training in such a field cannot be overestimated. FinTech training is critical in an attempt to make both financial institutions and citizens utilize such technology effectively. Misconception about financial service through technology can discourage its use, especially in disadvantaged groups, such as women, older adults, and poor groups, who in any case have poor access to traditional financial channels.
In a country like Bangladesh, with relatively poor digital literacy, FinTech training can bridge technology and society. By educating citizens in the use of basic digital banking, mobile money, and use of a variety of FinTech tools, citizens can become empowered to utilize such tools with confidence. For instance, mobile money will not work in a country when citizens comprehend its use and can value its added value.
Financial literacy is a problem in Bangladesh, even with an increasingly larger proportion of citizens having access to mobiles and the web. Many of them have no level of financial awareness, such as budgeting, savings, investments, and lending, even at a basic level. By adding FinTech in national curriculums or offering additional courses, Bangladesh can have a future generation of citizens with financial awareness, not only about using FinTech platforms but about sound financial decision-making that will benefit them in the long run. FinTech education can also drive entrepreneurship and innovation. Bangladesh has a growing pool of youth with a high level of technological familiarity, many of whom have entrepreneurial aspirations and a desire to start new companies. By training them in FinTech, such entrepreneurs can then implement new, cutting-edge approaches to resolving local problems, such as micro-loan lending, savings platforms, and even use of blockchain for tracking in supply chains.
With the growth of FinTech, heightened awareness and compliance in terms of cybersecurity become a necessity. There is a need for awareness and training of citizens in terms of cybersecurity and safeguarding individual information in an attempt to prevent fraud and preserve financial transaction integrity. Besides, for successful FinTech startups and conventional financial institutes, expert expertise in terms of compliance with laws and legislation is a must. By creating a strong foundation in terms of FinTech training, Bangladesh can make its financial environment secure and sound.
The Practical Application of FinTech in Bangladesh: While the educational system in Bangladesh is becoming increasingly inclined towards digital technology, its real incorporation of FinTech is a challenge in reality. There follow a few important actions that can be taken in a view to integrate FinTech in an effective manner in Bangladesh:
Services like bKash have taken banking a long distance towards the unbanked, but a lot can yet be achieved. In order to make best use of mobile money, both private and government sectors can join hands in creating infrastructure, widening mobile internet connectivity in rural areas, and providing mobile money at an affordable price for all. FinTech training will make such technology even more widespread and accessible. The government of Bangladesh started to opt for financial services in a digital form with developing programs such as National Payment Switch (NPS) and electronic payment supporting programs. For citizens, awareness regarding such services and use in a routine manner is a necessity. There have to be added efforts towards integration of FinTech in public service delivery, such as payment of taxes, social welfare payments, and access to subsidies, in a manner compatible with citizens' needs. Universities and technical schools in Bangladesh will have to integrate FinTech in curriculums. Industry captains and FinTech companies can even form such collaborations for training and internships, opening doors for students' future career in such a thriving sector. Partnership with international entities can even introduce Bangladesh's talent pool to global trends in FinTech, opening new doors for them and enabling them to contribute towards global innovations. The necessity for training in FinTech in Bangladesh cannot be over-emphasized. With its potential for financial inclusion, entrepreneurship, and driving economic development, it is important that the country spends in proper training programs in financial awareness and technological capabilities. Implementation of FinTech in Bangladesh will not only have a positive impact in its citizens' lives in a daily manner but will contribute towards its overall goal of economic development. By imparting its citizens with tools and information for proper use and application of FinTech, Bangladesh can build a more competitive, inclusive, and strong financial environment, becoming a pioneer in the FinTech revolution in the whole world.
The writer is an Online Editor, Daily Business Mirror
