Top 10 Rising FinTech StartUps In Bangladesh in 2024

written by Enamul Haque

February 29, 2024

Fintech startups in bangladesh
Fintech startups in bangladesh
FinTech Startup in Bangladesh

Top 10 Notable FinTech startups in Bangladesh as of 2024:

1. AyyKori Digital Limited: Pioneering Bangladesh’s first cashback and affiliate marketplace, AyyKori offers a seamless experience for consumers to save money through cashback rewards on purchases. Simultaneously, it provides opportunities for individuals, especially those from underprivileged backgrounds, to earn income through their innovative affiliate marketing program.

2. Masala Dosa: A group of business and tech enthusiasts taking on blockchain challenges.

3. Finager Fintech: Known as “Your finance manager,” is the first-ever 360° financial technical platform in Southeast Asia. It provides authentic financial data-driven information and infographics, focusing on green banking initiatives.

4. Borak Services Limited: TheBorak app offers multiple services in one place, allowing users to get professional services and products at a low cost. It takes a minimal commission from ridesharing drivers and on-demand service providers/store owners.

5. Biyog Private Ltd: Biyog operates as a mobile-subscription-based discounts application, providing users with discounts and deals.

6. SureCash: SureCash offers a complete mobile payment services system in Bangladesh.

7. Muthopay: Focusing on financial inclusion across borders.

8. Bangladesh’s first online system-guided tax preparation software.

9. iFarmer: A platform that connects farmers with investors for agricultural investments.

10. PayWell: A FinTech company that provides payroll and HR solutions.

These startups contribute to the growth and innovation of the financial technology sector in Bangladesh. Keep an eye on their progress as they continue to make waves in the industry!

Most Funded StartUp:

As of now, iFarmer has secured significant funding of the FinTech Startups in Bangladesh. Their innovative platform connects farmers with investors for agricultural investments, contributing to financial inclusion and sustainable farming practices. Keep an eye on their growth and impact!

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 Fintech Challenges in Bangladesh

Certainly! The fintech startups in Bangladesh faces several challenges as it strives for growth and innovation. Let’s explore some of the key obstacles of fintech startups in Bangladesh:

1. Low Mobile Phone and Internet Penetration: Despite progress, a significant portion of the population still lacks access to mobile phones and reliable internet connectivity. This hinders the adoption of digital financial services.

2. Regulatory Uncertainty: The Bangladeshi government has been slow to establish a comprehensive regulatory framework for fintech companies. As a result, many startups operate in a legal grey area, which adds risk and uncertainty to their business models.

3. Lack of Financial Literacy: The general population often lacks awareness and understanding of financial technology. Educating users about digital financial services is crucial for widespread adoption.

4. Cybersecurity Concerns: Ensuring the safety of funds and guarding against fraud remains a challenge. Robust cybersecurity measures are essential to build trust among users.

5. Unbanked Population: A large unbanked population, especially in rural areas, poses a hurdle. Fintech solutions need to address this gap and provide accessible services to underserved communities

6. Interoperability: Limited interoperability among payment players can hinder seamless transactions. Efforts to enhance collaboration and compatibility are necessary

7. Limited Early-Stage Investments: Despite growth potential, early-stage investments in fintech startups remain relatively low. Attracting more venture capital is essential for sustained development

8. Financial Inclusion Challenges: Small and medium enterprises (SMEs) and farmers often face limited access to credit. Informal markets with high costs persist, leaving vulnerable households at risk

9. User-Friendly Solutions: Conventional banking systems are not always user-friendly. Fintech companies must focus on creating intuitive interfaces and experiences

10. Regulatory Complexity: Navigating regulatory complexities can be daunting for startups. Clear guidelines and streamlined processes are crucial for their success

Despite these challenges, the future of fintech dtatups in Bangladesh remains optimistic. The country’s young population, growing middle class, and government support create favorable conditions for continued growth and innovation

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Government Support Available For The Development Of Fintech Startups In Bangladesh

The Bangladeshi government is actively supporting the growth of fintech startups in Bangladesh by creating a favorable regulatory environment, promoting digital financial services, encouraging innovation, and investing in digital infrastructure². Here are some key initiatives:

1. Regulatory Support: The government has been working to establish clear regulations and guidelines for fintech companies. This helps create a stable and predictable environment for startups and investors.

2. Financial Inclusion: Fintech solutions play a crucial role in reaching the unbanked and underbanked population. The government encourages financial inclusion through digital channels, ensuring that more people have access to financial services.

3. Investment Incentives: To foster innovation, the government provides incentives such as tax exemptions and grants to fintech startups. This encourages entrepreneurs to explore new ideas and technologies³.

4. Digital Payments Roadmap: Bangladesh has presented a three-year strategy for using innovative technologies to transform the country’s payments ecosystem. This aligns with the Sustainable Development Goals (SDGs) and aims to enhance digital financial services.

5. Infrastructure Development: Investment in digital infrastructure, including internet connectivity and mobile networks, supports the growth of fintech. Accessible infrastructure enables smoother transactions and wider adoption of digital services.

6. Collaboration with Industry Players: The government collaborates with industry stakeholders, including banks, telecom operators, and technology companies, to create an ecosystem conducive to fintech development.

Overall, the government’s proactive approach and commitment to fostering fintech innovation contribute to the sector’s positive trajectory of fintech startups in Bangladesh.

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The Future of FinTech StartUps in Bangladesh

The future of FinTech StartUps in Bangladesh is bright and promising. As technology continues to advance, the financial sector in Bangladesh is embracing digital transformation. Here are some key trends and possibilities for the future:

1. Digital Payments and Mobile Banking: The adoption of digital payment methods and mobile banking services will continue to grow. With increasing smartphone penetration, more people will use mobile wallets, QR codes, and contactless payments for everyday transactions.

2. Financial Inclusion: Fintech companies are working to bring financial services to the unbanked and underbanked population. Through innovative solutions, such as agent banking, microfinance, and digital lending, more individuals and small businesses will have access to financial products.

3. Blockchain and Cryptocurrencies: While still in its early stages, blockchain technology and cryptocurrencies have the potential to revolutionize financial services. Regulatory clarity and investor education will play a crucial role in shaping their adoption.

4. Insurtech: Insurance technology (insurtech) startups are emerging to simplify insurance processes, enhance customer experience, and offer customized insurance products. Expect growth in this sector as awareness increases.

5. Robo-Advisors and Wealth Management: Automated investment platforms (robo-advisors) will gain popularity, providing personalized investment advice and portfolio management. Wealth management services will become more accessible to a wider audience.

6. Regulatory Framework: The government and regulatory bodies are actively working on creating a conducive environment for fintech innovation. Clear regulations and policies will encourage more startups and investors to participate.

7. Data Analytics and AI: Fintech companies will leverage data analytics and artificial intelligence (AI) to enhance risk assessment, fraud detection, and customer insights. Personalized financial services will become more accurate and efficient.

8. Collaboration with Traditional Banks: Fintech startups and traditional banks will collaborate to create hybrid models. Open banking initiatives will allow seamless integration of services, benefiting both consumers and financial institutions.

9. E-Commerce and Payment Gateways: As e-commerce continues to thrive, payment gateways and secure online transactions will be essential. Fintech solutions will play a crucial role in enabling safe and convenient online shopping experiences.

10. Financial Literacy and Education: Fintech companies will focus on educating users about digital financial services, cybersecurity, and responsible borrowing. Increased awareness will drive adoption and trust.

In summary, the future of fintech startups in Bangladesh involves innovation, inclusivity, and a shift towards digital-first financial services. As long as the ecosystem remains supportive and collaborative, we can expect exciting developments in the coming years!

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