bKash and the Institute for Advanced Research (IAR) at United International University (UIU) have partnered to study what drives the adoption of digital transactions in Bangladesh and how their use affects living standards, women’s empowerment and households’ ability to cope with financial shocks.

Titled “Exploring Digital Transaction Adaptation in Bangladesh: Drivers, Social Outcomes, and Policy Implications”, the study will also examine the role of mobile financial services (MFS) in shaping these outcomes, according to the press release.

The release said innovation by banks and MFS providers, growing digital literacy, a wider network of financial services and regulatory support have helped change how people make transactions. The researchers will use data to assess how these changes have influenced people’s willingness to adopt, trust and use digital transactions. They will also identify barriers to wider adoption.

An agreement to conduct the study was signed recently at the UIU campus. Those present included UIU Vice-Chancellor Prof Dr Md Abul Kashem Mia and Dr M Rezwan Khan, professor emeritus in the Department of Electrical and Electronic Engineering and executive director of IAR. M Mazedul Islam, chief legal officer of bKash, and Shahriar Mahmood, executive vice-president and head of employer branding and recruitment at bKash, also attended, along with senior officials from both organisations.

The study will examine how financial service providers and government support encourage people to use digital transactions. It will also look at how trust and people’s perceptions of what others do or expect influence whether digital literacy translates into use.

The partners expect the findings to help financial service providers, researchers and policymakers make digital financial services more inclusive and resilient in Bangladesh.