Boosting app-based mobile financial services engagement in B2B subsistence marketplaces: The roles of marketing strategy and app design

Purpose of research project *

In a world where digital transactions are rapidly replacing cash, millions of micro-entrepreneurs in low-income markets remain financially excluded. This research investigates how sustained engagement with app-based mobile financial services (MFS) can transform small businesses, boosting efficiency, financial inclusion, and power dynamics in B2B subsistence marketplaces—economic environments where resource constraints make traditional banking inaccessible.

With the Bangladesh Central Bank prioritizing digital financial inclusion, this study sheds light on why many micro-suppliers and retailers struggle to maintain long-term use of MFS despite its benefits. By identifying key drivers of engagement, the research aims to inform policy interventions that enhance financial inclusion—paving the way for a more secure, cashless economy where small businesses thrive.

Who has, is or will benefit *

Beneficiaries of the Research:

Micro-enterprises (micro-suppliers & micro-retailers)
- Faster, more reliable financial transactions.
- Reduced reliance on cash, enhancing security.
- Strengthened supplier-retailer relationships.

Mobile financial services (MFS) Providers
- Strategic insights to refine marketing approaches.
- Improved customer retention and engagement.

Bangladesh Bank & Policymakers
- Evidence-based policymaking to foster financial inclusion.
- Frameworks to integrate subsistence micro-enterprises into formal financial systems.

Academics & Researchers
- Expanded understanding of B2B engagement in subsistence marketplaces.
- New perspectives on digital inclusion strategies in emerging economies.

Description of impact *

GENESIS

Why was the project established?
Ans: The project was established to examine the impact of sustained engagement with app-based mobile financial services (MFS) in B2B subsistence marketplaces. While MFS adoption is growing, maintaining continuous engagement remains a challenge. The study aimed to address this issue and inform policy interventions to improve financial inclusion among subsistence micro-enterprises.

What were the driving forces
Ans: The Bangladesh Central Bank’s focus on digital financial inclusion to integrate low-income entrepreneurs into the formal financial system.

What was the research question/gap in existing research that initiated the idea?
Ans: The research addressed the question: What factors sustain engagement with MFS among micro-enterprises in B2B subsistence marketplaces, and how does this engagement impact power and relationship dynamics?


BENEFITS AND IMPACT

Has my research led to policy change?
Ans: Yes. The Bangladesh Central Bank used the research findings to draft new mobile payment policies to be launched in 2026 (tentative). The insights on customer development support and the impact of promotional offerings are shaping future MFS policies.

Has my research led to organisational and/or operational changes in its targeted sector/s?
Ans: When the policy is implemented, it will influence mobile financial service providers to invest more in relationship-building strategies over short-term promotions.

Has my research improved the lives/wellbeing of certain cohort/s?
Ans: Yes. By demonstrating that sustained MFS engagement:
oEnhances trust and transparency in financial transactions.
oReduces dependency on cash, making transactions safer and more efficient.
oEmpowers micro-retailers by strengthening their bargaining power and business relationships.

What is the geographical scope of the impact?
Ans:
oLocal & National: The research directly informs Bangladesh’s financial policy and mobile financial services (MFS) provider strategies.
oRegional & International: Insights are applicable to other subsistence markets in South Asia, Africa, and Latin America that face similar challenges.

How has my research contributed to shifts in thought and changes in approach to a particular problem?
Ans:
oIt challenges the over-reliance on transactional promotions, emphasizing relationship-driven engagement strategies.
oIt validates the importance of app functionality over aesthetics in driving long-term MFS engagement.
oIt has influenced policy discourse at the Bangladesh Central Bank, integrating customer development support into policy planning.

Key Policy Updates: The Bangladesh Bank is considering collaborative research with the study authors to extend this work and implement targeted financial inclusion initiatives.

Impact date	Aug 2024
Category of impact	Economy impacts, Policy impacts, Technology impacts, Organisation impacts
Impact level	Adoption (early)