BUILDING A CASHLESS FUTURE IN BANGLADESH

The journey toward a cashless economy is more than a technological shift. It is a strategic transformation that can unlock new levels of economic efficiency, transparency, and inclusion. For Bangladesh, embracing digital financial solutions is not just about convenience; it is about empowering citizens, strengthening institutions, and accelerating national development.

 

A cashless economy reduces the reliance on physical currency, enabling faster, safer, and more traceable transactions. It enhances financial transparency, curbs informal economic activities, and improves tax compliance. For customers, it means greater convenience, reduced risk of theft or fraud, and easier access to financial services, especially for those previously excluded from the formal banking system.

 

Across Asia, several emerging economies like Malaysia, Philippines, and Thailand are already reaping the benefits of cashless services. Governments and financial institutions in these countries have implemented digital payment systems that have improved financial inclusion, enhanced transaction security, and reduced the cost of financial operations. These efforts have also helped formalize large segments of the informal economy, contributing to stronger economic growth and better public service delivery.

 

 

 

 

The Importance of Cashless Services in the Insurance Sector
 

The insurance industry stands to gain significantly from the adoption of cashless services. Traditionally reliant on manual processes and physical documentation, insurance transactions can be time-consuming and prone to errors. A cashless approach streamlines operations - from premium payments to claims processing - making services faster, more secure, and more transparent. It also enhances customer experience by reducing paperwork, minimizing delays, and enabling real-time access to policy information. For insurers, digital transactions improve operational efficiency and data accuracy. For customers, they offer convenience, confidence, and greater control over their financial protection. In a country like Bangladesh, where digital adoption is accelerating, cashless insurance services can play a pivotal role in expanding coverage and building trust in the financial system.

 

MetLife Bangladesh's Digital Contributions

 

From paying premiums to receiving claims, every insurance service we offer at MetLife Bangladesh can now be accessed digitally, ensuring a seamless and paperless experience. Since the COVID-19 pandemic, we have prioritized cashless, digital transactions in response to changing customer behavior and the growing demand for convenience. While digital premium collection accounted for only about 25% before the Covid pandemic in 2019, today more than 75% of the premium is collected through digital ecosystem which includes bank transfers (Electronic Fund Transfers), mobile wallets such as bKash, and payments through MetLife's One by MetLife mobile app and website.

 

 

 

 

Our agents play a vital role in bringing insurance solutions to customers across the country. Recognizing their influence and close engagement with clients, we have actively trained and encouraged our agency force to promote cashless premium payments to their customers.

 

We have also invested significantly in technology and training to help our customers adapt to a fully digital ecosystem. In 2024, MetLife Bangladesh settled 2,895 crore taka, all of which was processed through cashless transactions, with payments deposited directly into customers' bank accounts.

 

Our digital-first approach ensures that every step of the insurance journey - from onboarding and premium payments to claims and maturity benefits - is accessible without the need for physical cash or paperwork.

 

 

 

 

With the rapid evolution of the digital financial landscape, we are actively exploring opportunities to onboard emerging digital premium collection partners such as Google Pay and digital banks to further enhance our cashless services.

 

We remain focused on building customer awareness around the benefits of digital transactions and continuously seek ways to integrate cashless features that improve the overall customer experience.

 

The role of the Bangladesh government and Bangladesh Bank in expanding cashless transactions has been commendable. This can be progressed with further integration of services across platforms, allowing more global online payment systems and rationalization of charges on digital money transfers. Such efforts could make the cashless experience even more preferable for customers and accelerate adoption across the broader financial ecosystem.