Wage Digitization and Women's Financial Inclusion in Bangladesh

This report examines the impact of a government stimulus package on wage digitization and women's financial inclusion in the Bangladesh garment sector during the COVID-19 pandemic. The study highlights how the stimulus led to a significant increase in women's account ownership, rising from 26% to 43% between 2014 and 2021, and facilitated the opening of over two million bank or mobile money accounts for garment workers. It outlines the enablers and barriers to wage digitization, including regulatory changes, the introduction of biometric national identification cards, and the expansion of digital financial services. The report details qualitative findings from interviews with key stakeholders, including government officials and factory managers, and discusses the challenges women faced in fully utilizing their accounts, such as high cash-out fees and limited digital financial literacy. The analysis concludes with recommendations for strengthening the digital financial ecosystem to better support women's needs and enhance their financial inclusion.