Integrating FinTech Solutions in Agribusiness: A Pathway to a Sustainable Economy in Bangladesh

Abstract

The agribusiness sector in Bangladesh is a crucial part of the national economy, notably influencing employment, food security, and poverty alleviation. Despite its significance, the segment faces several challenges, including limited access to credit, financial inclusion, and inefficiencies in supply chains. Only 30% of small-holder farmers have access to formal monetary services, leading many to rely on informal lenders with high interest rates. Additionally, inadequate infrastructure and significant post-harvest losses hinder the sector's growth. FinTech solutions have the potential to address these challenges by enhancing financial inclusion, reducing transaction costs, and improving supply chain transparency. Digital financial services, such as mobile money platforms and digital lending, can provide smallholder farmers with access to savings, credit, and insurance products through mobile platforms. Blockchain technology and smart contracts can streamline financial transactions, reduce costs, and increase transparency in the supply chain.