Evaluating the Effectiveness of Southeast Bank's Financial Inclusion Programs in Bangladesh

This work is licensed under a Creative Commons Attribution 4.0 International License. The license permits unrestricted use, distribution, and reproduction in any medium, on the condition that users give exact credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if they made any changes. Evaluating the Effectiveness of Southeast Bank’s Financial Inclusion Programs in Bangladesh Deepto Chakraborty  Accounting, Department of Business Administration, University of Liberal Arts Bangladesh, Bangladesh Abstract In a nutshell, this research study focuses on and emphasizes the significant contribution of Southeast Bank to strengthening and improving financial inclusion programs, and evaluates the performance of these programs, as well as the key challenges and impediments encountered by Southeast Bank while delivering financial inclusion services in recent years. There have been descriptive statistical analyses and trend growth analyses of account penetration, the total amount of SME loans disbursed from 2020 to 2023. The research study itself is a testament to Southeast Bank’s relatively impressive performance and growth in facilitating and providing basic financial services to rural and marginalized communities, which have been deprived of an inclusive and efficient financial system due to the lack of effective financial inclusion plans. The research study also sheds light on the comparatively better-performing private commercial banks, for example, BRAC Bank and MTB Bank, in the financial inclusion agenda. Hence, it is worth noting that Southeast Bank should renovate, amend, and formulate new strategies and policies to match those of well-distinguished private commercial banks in financial inclusion programs. Keywords: Agent Banking, Bangladesh, Digital Banking, Financial Inclusion, Financial Literacy. JEL Classification codes: G21. Suggested citation: Chakraborty, В. (2025). Evaluating the Effectiveness of Southeast Bank’s Financial Inclusion Programs in Bangladesh. European Journal of Management, Economics and Business, 2(6), 3-16. DOI: 10.59324/ejmeb.2025.2(6).01 Introduction Financial inclusion can be interpreted as access to useful and affordable financial services and products for unbanked and marginalized communities, which can ensure sustainable economic development and play an important role in poverty alleviation. For a developing country like Bangladesh, the banking sector has adopted a financial inclusion program by launching various productive financial inclusion agendas and programs, which can help implement its core objectives and policies efficiently. In Bangladesh, the majority of the population has been living in rural areas where they cannot get access to financial services and products. Through this initiative and paramount decision, financial inclusion can facilitate the enhancement of the sustainability of the banking sector in Bangladesh, which can ensure the fostering of economic development and financial independence. Financial inclusion programs play a pivotal role in promoting sustainable investments and increasing savings among rural residents in Bangladesh. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 4 The government of Bangladesh has gained a strong foothold in promoting and launching financial inclusion programs and has made impressive progress in providing financial services with the No Frills Account, Mobile Banking Service, School Banking Service, and the expansion of Agent Banking service, which can eventually bridge the financial gap in remote and rural areas of Bangladesh. Bangladesh Bank, the Central Bank of Bangladesh, has been instrumental in providing small amounts of loans to women who want to venture into businesses that can be termed as women's entrepreneurship loans, and to propagate and support small and medium enterprises in Bangladesh. SME loans have been provided and disbursed by most of the well-established banks in Bangladesh to carry forward the legacy of microfinance concepts in Bangladesh. Southeast Bank has always played a contributory role in reinforcing and aiding small and medium-sized enterprises and women entrepreneurs in Bangladesh. Despite having great potential in financial inclusion programs in Bangladesh, due to the lack of strategic marketing campaigns and public relations strategies, most of the rural people living in unbanked communities have not been well aware of such productive and effective financial inclusion programs. The majority of the population has not been informed through formal channels, and most unfortunately, there is a lack of geographical distance from branches. Gender gap can be considered a serious impediment to the advancement of financial inclusion in Bangladesh. This study aims to synthesize and evaluate the major contribution of Southeast Bank in terms of advancing the financial inclusion agenda in Bangladesh, along with other private commercial banks, to validate and generalize the findings and recommendations in this research. The evaluation will be offered in an in-depth study about how Southeast Bank has strategically popularized financial inclusion throughout Bangladesh. Different kinds of data, for example, the number of school banking accounts, the number of banking outlets, the amount of SME loans, and the overall trends, will be shown through descriptive statistical analysis to provide deeper insights and possible improvement areas to promote and advance financial inclusion programs. The journey of Southeast Bank in Financial Inclusion Programs The journey of Southeast Bank in financial inclusion programs has been replete with success, challenges, opportunities, and impediments in recent times. Compared to the other betterperforming private commercial banks, Southeast Bank has made somewhat impressive progress; however, it should be noted that Southeast Bank needs to work and sort out the areas of improvement in its financial inclusion program. Nonetheless, Southeast Bank has been organizing financial literacy programs every year consistently on the first Monday of March, which signifies the extensive involvement of Southeast Bank in the financial inclusion program. It must be reiterated that financial inclusion programs are not only about carrying out banking operations and streamlining them. Financial inclusion programs can help create opportunities for unbanked communities that have been denied access to basic financial services for a long time. Financial literacy has been a key component of Southeast Bank's financial inclusion program, which has been conducted regularly over the years. The popularity of financial inclusion programs has grown over the years in a consistent and fruitful manner. Financial literacy programs have been established to empower underserved and unbanked communities with access to basic, efficient financial services. Financial literacy programs have been the flagship events of Southeast Bank, as they have been arranging and organizing energetic and educational financial programs to raise awareness about financial inclusion and literacy for residents living in disenfranchised areas in Bangladesh. In 2023, 2024, and 2025, Southeast Bank has been truly determined and committed to orchestrating a financial literacy program on the first Monday of March in the last three years, which has shown an unwavering commitment and allegiance to customers who have been deprived of basic financial services programs for marginalized communities and a financial inclusion program has been EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 5 concerned with people having low income background to provide them with financial services for example saving accounts, remittance facilities, credit facilities, and most importantly to mobilize them into banking operations with incurring a reasonable amount of costs. In the case of Southeast Bank, from the year 2021, Agent banking started its operations, comprising conventional and Islamic banking, and is now established with 100 agent banking outlets all over Bangladesh. In 2021, Southeast Bank stepped up and initiated Telecash, which has been operating to expedite and streamline the financial inclusion programs to make a smart Bangladesh and give access to the unbanked community members in different segments of Bangladesh. The sole purpose of Telecash Ltd, the subsidiary of Southeast Bank, is to launch and reimagine digital banking and mobile financial services to cater to new segments of customers and scale up customer satisfaction. Southeast Bank has envisioned making all adults in Bangladesh financially inclusive and spreading the financial literacy agenda among the underprivileged people in Bangladesh to achieve the core objectives and goals of the National Financial Inclusion Program (2021 - 2026) (Alliance for Financial Inclusion, 2021). UN Sustainable Goals 2030 also share the same mutual and implementable foresight about social cohesion and financial inclusion programs that will reshape the financial system’s landscape in Bangladesh, especially for underprivileged people (Alliance for Financial Inclusion, 2021). In 2023, Southeast Bank organized the School Banking Conference in Chapainawabganj district to raise awareness and promote financial literacy and financial inclusion programs among school-going children. This initiative has ultimately increased the number of account holders in the school banking section and reinforced saving habits among the school-going children. SHAGOTOM 1 , under the Agent Banking department, has undertaken great initiatives to increase and scale up deposit growth and gain the ultimate goals of the financial inclusion program by dint of technological and digital banking innovation, which have pushed the barriers of getting basic financial services for rural areas in Bangladesh. These agent banking services mostly help them in cash deposit, withdrawal, credit facilities, and remittance facilities. Henceforth, Southeast Bank’s expedition to financial inclusion has been teeming with grand accomplishments, success, and challenges as well. Research Objective This research aims to examine and evaluate the contribution of Southeast Bank in terms of advancing financial inclusion programs that have been implemented in various forms, for example, school banking, agent banking, SME loans, and women entrepreneurship loan disbursement. ● To explore Southeast Bank’s policies and strategies aimed at promoting financial inclusion and the key challenges of financial inclusion. ● To evaluate Southeast Bank’s progress in financial inclusion based on descriptive quantitative indicators, and interpret and quantify the bank’s contribution in terms of outreach, loan disbursement, and account penetration. Research Questions 1. What are the important financial inclusion initiatives undertaken and implemented by Southeast Bank? How effective are these initiatives in reaching out to unserved and marginalized communities in Bangladesh? 2. What are the obstacles, barriers, and limitations in executing financial inclusion programs by Southeast Bank? 3. What has been the trend in mobile and school banking account openings at Southeast Bank over the last four years? 1 SHAGOTM is an agent banking program which has been launched by Southeast Bank in Bangladesh in 2021. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 6 Literature Review Financial inclusion has successfully emerged as an important indicator of economic stability and development, which can benefit the unbanked communities in rural areas of Bangladesh who have been greatly affected by the lack of basic financial services and financial products. Many studies have found that developing economies have been grappling with a lack of efficient financial services, which can plunge those countries into economic instability, social inequality, and abject poverty, especially in remote and rural areas. Research studies have found that mobile banking service has been the top priority of financial inclusion policy, which has been propagated by Bangladesh and the Government of Bangladesh. According to the Bangladesh Bank Financial Inclusion Report 2023, the report itself has been a testament to the country's financial inclusion performance, achieved through the efforts of private commercial banks and state-owned banks (Bangladesh Bank, 2023). Currently, there are around 61 and 35 finance companies that have been instrumental in providing financial inclusion services for the people residing in rural areas of Bangladesh. This research will underscore and evaluate the major contribution of Southeast Bank to promoting, propagating, and advancing financial inclusion in Bangladesh, according to Bayes, von Braun, & Akhter, (1999), who found in their research that around 85 percent of people living in rural areas of Bangladesh have been deeply affected by a lack of telecommunication at the household and village level. The Grameen Bank, founded by Nobel Laureate Dr. Muhammad Yunus, initiated village pay phone programs and an agenda to eradicate poverty, and played an important role in bridging the gap between rural and urban segments in terms of improved and transparent telecommunication. The program itself was launched in 1997 by the Grameen Bank authority. The Grameen Bank set a glaring example of a financial inclusion model, which paved the way for prominent private commercial banks and state-owned banks to adopt financial inclusion programs through SMEs (Small and Medium Enterprises), Mobile Banking, and School Banking. Financial inclusion has been replete with many obstacles and challenges, especially in developing nations like Bangladesh, where getting access to basic financial services is not a cake walk for everyone. However, it is praiseworthy and worth noting that Bangladesh has made stellar progress in terms of achieving higher account penetration and account holders in school banking, mobile banking, and the number of loan disbursements in SME has been quite reasonable yet notable from Southeast Bank. Constructive and extensive theoretical research augmented by a descriptive quantitative approach has been conducted rarely, especially based on particular institutions, for example, Southeast Bank, which has been making an impressive contribution to bringing up the financial inclusion issues for disenfranchised people in Bangladesh. Henceforth, the research studies will put in conscious and concrete efforts to evaluate and highlight specifically in a private commercial bank, for instance, Southeast Bank’s significant contribution to the progression of the financial inclusion program, which descriptive quantitative statistical methods with recent data from mobile banking, school banking, SME, and agent banking will validate. Conceptual Framework The conceptual framework will throw light on the independent variables and dependent variables based on the research objectives and purpose. The research will explore and evaluate carefully the contribution of Southeast Bank to advancing financial inclusion programs in Bangladesh. The conceptual framework will clarify and facilitate understanding of the research purpose and its technical nuances. The conceptual framework will be illustrated through a diagram to identify the independent variables and dependent variables for this research. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 7 Figure 1. Independent Variables Figure 2. Dependent Variables The diagram is a clear and lucid illustration of independent variables and dependent variables in this research, which will evaluate the major contributions of Southeast Bank to promoting, promulgating, and advancing financial programs in Bangladesh. In this research, the independent variables have played an important role in strategizing and advancing financial inclusion programs. For example, mobile banking services can reach out to marginalized areas of Bangladesh to provide them with efficient financial services at a reasonable cost. School banking services can encourage and stimulate, and most importantly, instill savings habits in the youth’s mind, which can increase the number of account holders in Southeast Bank. Small and Medium enterprises have played a decisive role in strengthening and emboldening Bangladesh’s economy. It is obligatory and incumbent on researchers to analyze and evaluate the independent variable factors that may strongly influence the whole result; in this case, these independent variables, for example, mobile banking services, school banking, and SME loan disbursements, have been playing a contributing role in the financial inclusion agenda in Bangladesh. Dependent variables, for instance, the number of account holders, the number of SME loans disbursed, and the number of agent banking outlets, determine eventually the effectiveness of financial inclusion in Bangladesh implemented by Southeast Bank. Hypothetically speaking, the Southeast Bank authority has decided to increase the EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 8 number of loan disbursements to SME to support and revitalize, and encourage small businesses that may demonstrate inclusion of employing credit access to small and medium enterprises. So, in this research, both variables have been essentially fundamental to supplement key findings to conduct research accurately. Research Methodology Research Design Research design has been one of the most essential sub-segments of formulating research methodology to carry out research activities with proper research modalities. As the research study focuses on evaluating the adoption of the financial inclusion program by Southeast Bank, one of the most prominent private commercial banks in Bangladesh, a descriptive quantitative statistical method will be employed, and the sample size will be 100. This approach will primarily involve descriptive statistical analysis, supplemented by a few analytical and theoretical insights to enhance the overall research design. Data Collection Method 1. Primary data: To conduct the research with full efficiency and effectiveness, - wellstructured survey questionnaire will be carried out with a sample of 100 clients and customers from the bank, for example, school banking account holders and mobile banking account holders, and borrowers of SME loans from Southeast Bank, and the survey will be restricted to Dhanmondi branch owing to time constraints and limited resources. 2. Secondary data will be collected through a review of Southeast Bank's annual reports, the Southeast Bank Financial Inclusion Report, the Bangladesh Bank Financial Inclusion Report 2023, academic research papers, journals, and contemporary business news related to the topic. The Daily Star, The Business Standard, and The Financial Times will be used to augment and validate research findings. For carrying out trend analysis for 4 years to evaluate the increase in account holders of school banking and mobile banking, the total number of loan disbursements in the SME sector, and the number of agent banking outlets, to synthesize the contributions of Southeast Bank to fostering financial inclusion core programs in the whole of Bangladesh. Sampling Method Due to time constraints and a lack of sufficient resources to conduct the research, the convenience sampling method will be employed to collect the data in the research. Nevertheless, the sampling method itself is cost-effective, smooth, and quick, but it is obligatory as a researcher to note that convenience sampling in this research specifically may not apply to a larger population, which may lead to potential bias in terms of sampling. The sample size will be 100. Data Analysis Technique/Statistical Method In this research, the descriptive quantitative statistical analysis will be used, for example, percentage, frequency, to demonstrate the survey-based questionnaire analysis, and trend analysis will be utilized by dint of table charts with relevant datasets to evaluate and analyze briefly the major contributions of Southeast Bank in Financial inclusion program and high school banking, mobile banking services and SME loan disbursements. Survey Questionnaire Design The survey questionnaire has been designed using a Likert scale by Google Forms. The questionnaire has been prepared and formulated following two research objectives and variables to find out the research findings and validate them with accurate and reliable data. Employing a EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 9 four-point scale may offer clear and comprehensive insights and scenarios of Southeast Bank’s contribution to financial inclusion and its expansion all over Bangladesh. This survey questionnaire will offer closed-ended questions. For this research study, closed-ended questions will be given because the responses will facilitate researchers to statistically evaluate with descriptive quantitative statistics Southeast Bank’s major accomplishments in the financial inclusion agenda. Henceforth, it is imperative to note that the survey questionnaire will be carried out with academic ethical considerations and implications, so that any kind of confidential or sensitive information will not be given in Google Forms under any circumstances. Results Table 1. What is Your Age? Age Frequency Percentage 18-24 20 20% 2534 40 40% 35-44 40 40% The Table 1 shows that different age groups have varying levels of penetration in terms of the financial inclusion program offered by Southeast Bank. It has been crystal clear that the majority of respondents originate from mature and aged people, for example, the 25 - 34 and 35 - 44 age groups have more penetration in financial inclusion programs in Southeast Bank. Table 2. What is Your Gender? Gender Frequency Percentage Male 60 60% Female 40 40% It can be interpreted that, in the financial inclusion programs launched by the well-esteemed Southeast Bank, the male respondents have been taking the lead competitively over the female groups. Table 3. How Frequently are These Services Promoted to Customers? How frequently are these services promoted to customers Frequency Percentage Weekly 20 20% Monthly 50 50% Rarely 10 10% Never 20 20% From Table 3, it is quite evident that financial inclusion programs have been promoted to the customers by Southeast Bank on a perpetual basis. Southeast Bank prefers to promote and advertise its financial inclusion programs monthly, according to the survey questionnaire. The percentage rate of the weekly section has been 20, which signifies the promptness of promoting financial inclusion programs in a customer-centric approach. Since the financial inclusion program is one of the most celebrated flagship programs from Southeast Bank, the percentage and number of frequency in the rarely and never sections have been 20 percent and 10 percent. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 10 Table 4. Have Financial Inclusion Programs Improved Your Access to Banking? Have financial inclusion programs improved your access to banking Frequency Percentage Yes 55 55% No 45 45% Based on the research objectives and the main purpose is to gauge and assess the effectiveness of financial inclusion programs from Southeast Bank, the improvement of getting access to basic banking and financial services in rural areas of Bangladesh has been quite satisfactory, but is yet to reach at zenith of Southeast Bank’s purpose and vision to provide financial services and banking services to the underdeveloped and unbanked communities of Bangladesh. The percentage rate of affirmative action has been 55 percent, which is reasonable, and the percentage of negative responses has been 45 percent, which signifies that the clients from Southeast Bank have been embracing financial inclusion programs with trust and loyalty. Table 5. How Often do You Use Southeast Bank's Services in Financial Inclusion? How often do you use Southeast Bank's services in financial inclusion Frequency Percentage Daily 25 25% Weekly 20 20% Monthly 30 30% Rarely 25 25% According to Table 5, it can be inferred that the use of financial inclusion services and programs has increased substantially, particularly every month. In different aspects and perspectives, the utilization of financial inclusion programs by Southeast Bank has been emphasized daily basis, rarely basis, and weekly basis, with the percentage rate of 25 percent, 20 percent, and 25 percent that can symbolize and manifest the overall involvement of clients from Southeast Bank in financial inclusion programs, which eventually may give satisfactory indication towards embracing these financial services. Table 6. What Challenges and Obstacles Do You Face Using Southeast Bank's Services? What challenges and obstacles do you face using Southeast Bank's services Frequency Percentage Distance 30 30% Poor internet 35 35% Lack of awareness 20 20% Complex process 15 15% It has been shown that the challenges and obstacles of using financial services in terms of financial inclusion programs have been demonstrated in Southeast Bank. Southeast Bank has been markedly grappling with impediments and challenges faced by multifaceted issues around the financial inclusion program. Poor internet connectivity has been the prime concern, and it is the most rudimentary component to promote and advertise financial inclusion services in rural segments of Bangladesh. The percentage rate of lack of awareness has shown some quite concerning indications about encountering challenges and obstacles faced by Southeast Bank. On the one hand, distance has been a major concern for the residents living in rural areas of Bangladesh, where they cannot get basic financial services due to a lack of proximity. Sometimes, the financial inclusion programs and their complex process might appear as a probable challenge for Southeast Bank to disseminate and marketize its efficacy level for the clients. EJMEB (ISSN 3041-2102) | VOLUME 2 | NUMBER 6 | 2025 11 Table 7. What Type of Services Do You Use from Southeast Bank? What type of services do you use from Southeast Bank Frequency Percentage SME or micro credit 35 35% Mobile banking 40 40% School banking 10 10% Agent banking 15 15% Table 7 has been given to demonstrate the actual involvement of financial inclusion programs from Southeast Bank’s clients. The highest percentage rate of mobile banking has shown and indicated that the clients hailing from unbanked and underprivileged communities have been well conversant with operating mobile banking services since the process itself is smooth, efficient, and costeffective, ensuring an optimal efficacy level. SME loan disbursement has been the second most essential priority in Southeast Bank, as it has been highly committed to supporting and providing them with loans at a reasonable interest rate, and the percentage rate of this segment has been somewhat satisfactory. Since Southeast Bank has recently launched a school banking service for its clients, especially for youth, the bank wants to instill the habit of savings in their minds from a rudimentary level. Nevertheless, the percentage rate of school banking service has not been impressive, yet school banking may be potentially a great driver in buffing up Southeast Bank’s reputation. Lastly, agent banking services have started spreading all over the country at a marginal rate, which will continue to increase with this well-thought-out progress in this segment. Hence, it can be concluded that mobile banking and SME loan disbursement have been core components in the financial inclusion programs of Southeast Bank. Table 8. Which Southeast Bank Service Do You Find Most Useful in Financial Inclusion? Which Southeast Bank service do you find most useful in financial inclusion Frequency Percentage Mobile banking 40 40% Agent banking 25 25% SME Loan 20 20% School banking 15 15% Table 8 represents the usefulness and efficacy level of financial inclusion programs, and respondents are mostly clients who opted for the mobile banking service, which constitutes around 40 percent of the total table charts. The second-highest percentage rate goes to agent banking, which helped Southeast Bank to embolden and refine its reputation through launching outlets in different parts of the country. SME loans have been rolled out with a reasonable interest rate to attract and cater to small and medium-sized business entrepreneurs, and the percentage rate of SME loans in the table chart is 20 percent. Lastly, it can be stated that the school banking service and the number of account holders have risen reasonably in Southeast Bank. Table 9. How Satisfied are You with Southeast Bank's Overall Services in the Financial Inclusion Program? How satisfied are you with Southeast Bank's overall services in the financial inclusion program Frequency Percentage Very satisfied 20 20% Satisfied 25 25% Neutral 15 15% Very dissatisfied 15 15% Dissatisfied 25 25%