Financial literacy stands for the knowledge, skills, and understanding of financial concepts and tools that enable individuals to make informed and effective decisions regarding their personal finances. It involves having a solid understanding of various financial topics, including budgeting, saving, investing, borrowing, and managing debt. Financial literacy is essential in supporting financial inclusion, especially in the context of the advancement of Digital Financial Services (DFS). BB for the first time has taken initiative for issuing this Financial Literacy Guidelines (FLGs) with a view to rolling out a wide range of financial literacy programmers for mass people. These guidelines are intended to be implemented through Banks and FIs, hereby termed as Financial Literacy Providers (FLPs), within 7 years from its commencement. However, the implementation stream shall remain continued beyond the phased period. Leveraging on the phenomenon that financial literacy is a prerequisite for sustainable financial inclusion; BB has implemented a number of initiatives so far. Among the numerous measures, distribution of fly-leafs, brochures, pamphlets, leaflet regarding financial services, broadcasting commercials in television and radio on consumer protection, advertisements in the newspaper on information of regulated financial institutions, publicizing video documentary on financial services, streamlining school banking conferences across the country, arrangement of banking fair, open credit disbursement in favor of marginalized and low income people, awareness building program for CMSMEs, road shows, SME fairs, Women Entrepreneur fairs etc. are remarkable. In these courses AIBL takes part with its open arm.
Financial inclusion indicates the availability and accessibility of financial services and products to all segments of society, particularly to individuals and communities who have traditionally been excluded from formal financial systems. It aims to provide opportunities for people to participate in the formal economy, manage their finances, and improve their overall economic well-being.
Our vision is to create a society where financial literacy and financial inclusion are accessible and attainable for all individuals, regardless of their background or circumstances. We are working to provide knowledge to individual people on how to earn, spend, save, borrow and protect their money. In addition to knowledge about financial matters and services that effectively facilitates their skills, behavior and attitude of an individual towards impactful financial decision that help their personal wellbeing as well for the society as a whole. We envision a society where everyone has the knowledge, skills, and resources to make informed financial decisions, improve their financial well-being, and actively participate in the economy.
Organogram of Financial Literacy Wing (FLW)
Our objective is to empowered nation with right knowledge and skills for making responsible financial decisions, these guidelines recognize to achieve the following set of objectives:
We organize meetings, seminars, workshops across the country so that the financial illiterate and underprivileged people of the society can acquire financial knowledge and later they can come under the banking system and achieve their financial well-being.
We empowered individuals by providing them with comprehensive financial education that covers a wide range of topics, including budgeting, saving, investing, debt management, and financial planning. Our program equipped individuals with the necessary skills and knowledge to make sound financial decisions, navigate financial challenges, and build a solid foundation for their future.
We striving to promote financial inclusion by ensuring that all individuals have access to affordable and appropriate financial products and services. Our program will work towards eliminating barriers such as lack of access to banking services, limited financial resources, and discrimination, thus enabling underserved populations to participate fully in the financial system.
We are working on digital financial literacy (DFL) to build a nation that is competent to safely use digitally delivered financial product and services and make informed financial decision
Financial literacy needs may vary based on demographics, cultural backgrounds, and life stages. Therefore, our program will adopt a tailored approach, offering targeted financial education materials and initiatives that resonate with diverse populations. We will ensure that our resources are accessible, culturally sensitive, and available in multiple languages, promoting inclusivity and understanding.
We facilitate digital financial service (DFS) by introducing digital products (e.g. Mobile Financial Service, Digital transformation of payment systems, Islamic Wallet, ATM, Remittance) simultaneously improving it’s service quality.
We provide collateral free loans to financially literate people who are underprivileged/freedom/ fighters in the society under taka 10/50/100 refinance scheme of Bangladesh Bank.
According to BB guidelines the target groups hereby divided into three different tiers while delivering financial literacy. The target groups shall comprise cross-cutting community. Both the financially included and excluded populace of the target groups shall be covered through tier distribution. The excluded people are basically un-served or under-served segment, who are hereby expected to reap the uncovered potential of the available financial services after financial literacy. Those who are already included in the financial system are expected to keep pace with the evolution of financial ecosystem.
The Tier-wise target groups are illustrated below:
|Tier-wise Target Groups|
|a) Farmers and low income marginalized/under-privileged people (eligible for 10/- TK account such as: day laborers, disaster affected people, social safety net beneficiaries, low wage earners, physically challenged people, third gender, itinerant community, working teens etc.);
c) Cottage & Micro entrepreneurs/ Micro merchants/Retailers;
d) Women (Individual & Entrepreneur);
e) Migrant workers.
c) Other wage earners community, Salaried people;
d) E-Commerce,F-Commerce, Home based entrepreneurs.
b) Co-operative societies;
c) Business associations;
d) Other groups as identified and prioritized from time to time.
These guidelines will be implemented within 7 years from its inception to reach the target groups identified in section 4.2. The first year will be treated as piloting year among these 7 years. The financial literacy programs will be conducted on the basis of the following schedule. However, the cross-cutting target groups will be considered in any particular group:
5.3.4 Nonetheless, the flow of financial literacy programs will be continued beyond the phased period until and unless further instructions provided by Bangladesh Bank with a view to reaching all the people in the society including unserved/underserved as well as target groups identified here.
1) For piloting year/commencement year/1st year:
*Unit office includes local office/SME unit/regional office, cluster office etc. as applicable.
2)For 2nd to 7th year:
(For the Year of 2023)
Name of the FLP: Al-Arafah Islami Bank Limited
Total Number of Branches (Up to reporting time): 205
Total Number of Sub-branches (Up to reporting time): 48
Total Number of Unit Offices (Up to reporting time):
No. of Programs (to be conducted in 2023): 24
|Sl. No.||Tentative month of programs||Territory (Name of the Division)||Target group||Type of program||Expected Number of beneficiaries|
|(According to Financial Literacy Guidelines section 4.2 Tier-1)||(Face to face/Virtual)|
|1||February||Dhaka||Tier-1 (Mix)||Face to face||30|
|3||March||Sylhet||Tier-1 (Mix)||Face to face||30|
|5||April||Rangpur||Tier-1 (Mix)||Face to face||30|
|7||May||Barishal||Tier-1 (Mix)||Face to face||30|
|10||Mymensingh||Tier-1 (Mix)||Face to face||30|
|12||Chattogram||Tier-1 (Mix)||Face to face||30|
|14||Rajshahi||Tier-1 (Mix)||Face to face||30|
|16||September||Khulna||Tier-1 (Mix)||Face to face||30|
The financial literacy program aims to empower individuals with the knowledge and skills necessary to make informed and responsible financial decisions. Through a series of interactive workshops, seminars, and activities, participants are introduced to various financial concepts and tools. They learn the importance of budgeting, saving, investing, and managing debt effectively. The program provides practical examples and real-life scenarios, allowing participants to apply their learning to their own financial situations. By analyzing credit scores, exploring investment options, and discussing financial products, participants gain a deeper understanding of the financial landscape and develop the confidence to navigate it successfully. With guest speakers, panel discussions, and gamified activities, the program ensures an engaging and interactive learning experience. Participants receive practical resources and tools to support their financial journey beyond the program, enabling them to take control of their financial future and achieve their goals. Ultimately, the financial literacy program equips individuals with the necessary skills to make informed financial decisions, build a strong foundation for their financial well-being, and contribute to their overall financial success.
These customer engagement sessions, focusing chiefly on females, are hosted in remote areas of the country where existing and prospective migrants and their beneficiaries are invited. The event was presided over by Mr. Muhammad Azam, chief guest DMD Mr. Abed Khan and special gust was Mr. Muhammad Manjor Hasan of Al-Arafah Islami Bank Ltd.
Al- Arafah Islami Bank Ltd. organized Financial Literacy and investment training program for women entrepreneurs under Chattogram zone at Chattogram. Honorable Deputy Managing Director Mr. Abed Khan and women entrepreneurs were present in this program.
Chief guest Honorable DMD Mr. Abed Khan, special guest Mr. Muhammad Manjor Hasan from Al-Arafah Islami Bank Ltd and women entrepreneurs was present in this program.
Al- Arafah Islami Bank Ltd. organized Financial Literacy and investment training program for women entrepreneur under Khulna zone at Khulna. Honorable Deputy Managing Director Mr. Abed Khan and women entrepreneurs were present in this program.
This event was organized for financial literacy training & investment for 43 clients under Financial Literacy activities and selection of new women entrepreneurs in Khulna Zone against CMSME Scheem.
The event was presided over by DMD Mr. Mahmudur Rahman of Al- Arafah Islami Bank Ltd. And Mr. Ujjal Kumar Das was chief guest from Bangladesh Bank.
Al- Arafah Islami Bank Ltd. Organized open investment disbursement program in Ranganati region as well as provide investment to 43 entrepreneurs as a leading bank.
Financial literacy can have several positive outcomes for individuals and society as a whole.
Financial literacy equips individuals with the knowledge and skills to effectively manage their personal finances. They can create budgets, track expenses, and make informed decisions about saving, investing, and spending money. This leads to better financial stability and the ability to meet financial goals.
Debt Reduction: Financially literate individuals understand the implications of debt and can make informed decisions to avoid excessive borrowing. They are better equipped to manage debt responsibly, make timely payments, and develop strategies for reducing debt over time.
Improved Saving and Investing: Financial literacy help individuals understand the importance of saving and investing. They can make informed choices about appropriate savings such as bank accounts, retirement plans, or investment portfolios. Financially literate individuals are more likely to build wealth through regular savings and smart investment choices.
Enhanced Decision-Making: Financial literacy enables individuals to make sound financial decisions based on knowledge and analysis. They can evaluate financial products and services, compare options, and choose those that align with their needs and goals. This leads to better decision-making in areas like insurance, mortgages, and retirement planning.
Increased Financial Security: Financially literate individuals are more likely to have emergency funds and insurance coverage to protect against unexpected events. They understand the importance of risk management and can make informed decisions to mitigate financial risks, thus enhancing their overall financial security.
Entrepreneurial Skills: Financial literacy is crucial for aspiring entrepreneurs. It helps individuals understand business finance, cash flow management, and financial planning for startups. With financial literacy, entrepreneurs can make informed decisions regarding business loans, investments, and revenue management.
Long-Term Financial Planning: Financial literacy empowers individuals to plan for their long-term financial future. They can set realistic goals, such as homeownership or children’s education, and develop strategies to achieve them. Financially literate individuals are more likely to have retirement savings and take advantage of investment opportunities that align with their long-term objectives.
Reduced Financial Stress: By understanding financial concepts and having the necessary skills, financially literate individuals can reduce financial stress. They can navigate financial challenges more effectively, seek appropriate assistance when needed, and proactively manage their finances, leading to improved overall well-being.
Overall, financial literacy equips individuals with the knowledge and skills to make informed financial decisions, leading to greater financial well-being, reduced debt, increased savings and investments, and improved overall financial security.”
People who are financially literate are generally less vulnerable to financial loss.
The competence and knowledge of how to access and use digital products and services such as tablets, mobile, phone, web, browsers, SMS, the Internet etc.
We aspire to create a lasting impact by empowering individuals to become financially resilient and self-sufficient. By equipping people with the knowledge and skills to manage their finances effectively, we aim to break the cycle of poverty, reduce financial stress, and foster economic growth and stability in communities.
Al-Arafah Islami Bank Ltd.
Financial Inclusion Department (FID)
Head Office, Surma Tower (6th Floor), Dhaka-1000.
Phone: +880-02-44850005, +880244850096, Fax: +88-02-44850063
Mobile:01711120303 (AVP & Head of FID), 01581564660 (Officer), 01877195543 (Officer)
Web link: http://www.al-arafahbank.com/fid.php