Institutional and regulatory requirements for innovative Fintech market in Bangladesh

Abstract

This chapter aims to critically discuss the essence of institutional and regulatory requirements given the current status of fintech development in Bangladesh. The chapter indicates that the fintech development in Bangladesh has been mostly skewed toward mobile financial services (MFS). The development of other advanced fintech methods, however, such as peer-to-peer (P2P) lending, distributed ledger technology (DLT), crowdfunding, cloud computing, credit rating firms for start-ups or other innovative firms, partner financing, and blockchains, are not satisfactory. The chapter reveals that such an outcome persists because of the prevailing regulatory and institutional drawbacks. Hence, by explaining the importance of institutional and regulatory requirements, the chapter proposes a framework for the fintech market development in Bangladesh, given the development agendas of vision 2041 and beyond. The chapter also proposes some key policy suggestions to strengthen the fintech market dynamics in Bangladesh for achieving financial sustainability.