The Impact of Mobile Banking data on Credit Risk Assessment in Bangladesh
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The Impact of Mobile Banking data on Credit Risk Assessment in Bangladesh. (2025). International Journal of Sustainability and Multidisciplinary Research, 1(1), 23-43. https://doi.org/10.71214/x8qd1526

Abstract

This study explores the transformative role of mobile banking data in enhancing credit risk assessments within Bangladesh’s banking sector. As mobile financial services such as bKash, Rocket, and mCash expand, they generate valuable transactional data that can offer insights into financial behaviors, particularly for individuals lacking formal credit histories. This research examines how transaction frequency, volume, and savings patterns correlate with creditworthiness, demonstrating that mobile banking data serves as a reliable alternative for assessing borrower risk. By fostering financial inclusion, mobile banking enables underserved populations to access credit, driving economic growth. However, the study highlights challenges such as data privacy concerns, quality inconsistencies, and regulatory gaps. Addressing these issues through standardized frameworks and advanced analytics, including machine learning, can refine credit risk models, ensuring more accurate and equitable lending decisions. The findings offer significant implications for banks, policymakers, and researchers, paving the way for inclusive credit systems and sustainable financial development in Bangladesh.

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Copyright (c) 2025 Abiduzzaman (Author)

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