Deposit Assessment in Bangladesh

This country report summarizes findings on microdeposit mobilization in Bangladesh. It examines macroeconomic and demographic trends, the legal and regulatory framework, microdeposit service providers, products and methodologies and savings practices in Bangladesh. Findings include:

• Savings services started emerging as independent initiatives in the 1990s, with the introduction of new products, such as voluntary savings and time deposits;
• Microfinance Act, 2006 and Microcredit Regulatory Authority protect customers savings by selective licensing and introducing a ceiling on savings;
• Domestic savings and national savings have grown over the past three years;
• Clients have a range of service providers and services to choose from and often associate with many providers at one time;
• Clients choose providers according to the purpose of savings and how they intend servicing it;
• Clients have emphasized their need for flexible savings products which allow them to access their money easily;
• Doorstep delivery, easy processes and good behaviour by staff are key and have become the norm for most institutions, except banks.

The paper highlights the need for savings friendly policies that can allow organizations to mobilise inexpensive funds in Bangladesh.