Inclusive solutions driving the journey to a digital Bangladesh.
Ever since the vision of Digital Bangladesh was introduced in 2008, the government of the South Asian nation has made it a key priority to build a robust digital infrastructure and promote the adoption of information and communication technologies across multiple sectors. This rapid digital transformation, coupled with the country’s young and tech-savvy workforce and a burgeoning consumer economy, is paving the way for a smarter future for Bangladesh.
“With its continued digitalization and upgrading of technology, consistent rise in per capita income, demographic dividend, and geographic location, Bangladesh today is increasingly vital to global trade and international supply chains with a world of opportunities.”
Md Mahbub ur Rahman CEO of HSBC Bangladesh
The Future of Finance
At the forefront of the country’s digital transformation is the financial services sector. According to the UN-based Better Than Cash Alliance’s latest analysis with Bangladesh’s flagship Aspire to Innovate (a2i) program, one in five financial transactions in the country are now digital, compared to just one in 19 in 2016. Financial inclusion over the same period has also more than doubled to 79%.
As part of one of the world’s leading banks, HSBC Bangladesh has played a pivotal role in bringing the future of finance to the country. Since opening its Dhaka main office in 1996, the bank has pioneered a number of digital solutions to support smarter businesses. For example, the bank was the first in the country to offer e-payment solutions for VAT and customs duty through its online platform, HSBCnet. It also launched its HSBC Supply Chain Finance platform, a digital solution that allows corporate clients to manage the seamless end-to-end financing process to suppliers.
“The growth of digital services and the shift to a cashless society is enabling the bank and its customers to connect with opportunities, potential prospects, and suppliers from further afield,” says HSBC Bangladesh CEO Md Mahbub ur Rahman.
And in an important milestone in the digitalization of Bangladesh’s financial sector, HSBC Bangladesh completed the country’s first international blockchain transaction in 2020, and has since been offering the technology to businesses looking for an alternate platform to carry out trade finance transactions.
Growing and Learning with Technology
Beyond financial services, Bangladesh is promoting digital ecosystems in other sectors. In particular, the adoption of technology in agriculture has been recognized as key to achieving food security, boosting productivity, and stimulating economic growth—all of which contribute to Bangladesh’s vision of becoming a developed nation by 2041. Among its many initiatives in this sector, the government has been working with the United Nations’ Food and Agriculture Organization on the Digital Villages program to provide digital services and support to farmers across the nation. It has also rolled out various online resources, including apps and websites, to empower those working in the agriculture sector.
Farmers are not the only ones reaping the benefits of digitalization. The transformation of Bangladesh’s agriculture sector has also presented plenty of opportunities for investments, especially with the country being fertile ground for agritech startups such as iFarmer—a digital platform which creates access to financing, advisory services, and distribution channels for farmers—which raised over $2 million in investments in 2022.
Another key focus in Bangladesh’s drive for digital transformation is education. Initiatives in this field have been especially notable for being collaborative, multidimensional, and focused on human-centric learning experiences. Ample efforts have also been made to address the digital divide in education to make sure no student is left behind.
“One of the key focuses of our corporate sustainability efforts is working towards empowering women with future skills development for employability,” says Rahman. As such, HSBC has been working with the British Council on the EDGE: English and Digital for Girls’ Education program to provide 21st-century skills to marginalized or out-of-school adolescents in Bangladesh so they can achieve brighter futures. The bank also recently joined forces with the Asian University for Women to launch the HSBC-AUW School of Apparel and Retail Management master’s program, which aims to equip women with the skills and resources to become tech-savvy and sustainably-minded leaders in Bangladesh’s fast-evolving textiles and garments industry.
To Bangladesh and Beyond
This tech-driven transformation has given rise to plenty of investment opportunities in the digital sector. To showcase these opportunities, the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) hosted the Bangladesh Business Summit in March 2023. The event was organized in partnership with the Government of Bangladesh and was inaugurated by the Honorable Prime Minister Sheikh Hasina of Bangladesh.
The three-day event provided a platform for local business leaders, policymakers, and investors to meet and exchange ideas on various topics, including key investment opportunities, the potential of the digital economy, long-term finance, modern agriculture, high-tech manufacturing and more.
An Innovative, Inclusive Bangladesh
Driving the nation’s digitalization efforts across multiple sectors is the vision of creating a Smart Bangladesh. This nationwide initiative is about more than just futuristic gadgets and software. Rather, it’s about leveraging technology to create inclusive digital solutions and services from which businesses and citizens from all socioeconomic backgrounds can benefit.
In his keynote speech at the panel discussion titled “Harnessing Digital Economy to Unlock New Frontiers for a Smart Bangladesh” at the Bangladesh Business Summit, State Minister for Information and Communication Technology Zunaid Ahmed Palak highlighted the four pillars on which Smart Bangladesh 2041 is built: Smart Citizens, Smart Government, Smart Economy, and Smart Society.
“In order to achieve these targets, we have identified a number of transformational initiatives that will transform Bangladesh into a digitally developed, knowledge-based, and innovative Smart Bangladesh.”
Zunaid Ahmed Palak State Minister for Information and Communication Technology
With a clear vision of a Smart Bangladesh, the country is well-placed to continue its journey to becoming a developed nation by 2041 and create a brighter and better future for all.
