Role of Digital Financial Services in Confronting Covid-19 Crisis in Bangladesh

Abstract

Abstract This study examines the impact of Digital Financial Services (DFSs) in confronting COVID-19 crisis in Bangladesh. It attempts to explore the magnitude of using DFSs along with the efficacy and difficulties of DFSs in coping with humanitarian emergency during COVID-19 pandemic. For analyzing the role of DFSs, the study collects primary data by carrying out a computerized questionnaire survey among 100 respondents. According to the field survey outcomes, DFSs are found useful as transactions can be done efficiently while maintaining social distance. Therefore, an increasing number of people are using DFSs for financial transactions during the pandemic. However, the survey outcomes also report that preferring DFSs over physical cash have many challenges such as data privacy concern, digital fraud, transaction limit problem, difficulty in cashing out and others. If these challenges are addressed properly, DFSs can play an important role in strengthening the resilience of populations during the crisis. JEL classification numbers: G01. Keywords: Digital Financial Services, COVID-19 Crisis, Humanitarian Emergency, Bangladesh.