SITUATION ANALYSIS

ON FINANCIAL INCLUSION FOR

FEMALE RMG WORKERS
 PREPARED BY

DAMIL PRAKASH
ANALYST
dprakash@odinbd.com
+880 171 101 7791

NOOR TUSHAN
ASSOCIATE DIRECTOR
nmtushan@odinbd.com
+880 197 134 6964

MAKSUDUL ISLAM
SENIOR DIRECTOR
mislam@odinbd.com
+880 173 033 3525

ZAYN AHMED
RESEARCH SUPPORT
zahmed@odinbd.com
+880 175 904 0645

YUSUF MALLICK
RESEARCH SUPPORT
ymallick@odinbd.com
+880 168 291 9137

ODIN ADVISORY & ANALYTICS DISCLAIMER

110/A ROAD-2 BLOCK-A NIKETON
GULSHAN-1, 2nd FL This research has been performed by
DHAKA-1212, BANGLADESH ODIN on behalf of CARE Bangladesh,
and only the authors are responsible
+880 447 598 4781
for the findings, views & qualitative
www.odinbd.net assessments in this report.

BACKGROUND OF THE REPORT

This report has been commissioned as part of an agenda by CARE Bangladesh that aims to;
Survey the degree of financial inclusion of female workers in Ready Made Garments (‘RMG’) factories in Bangladesh,
Assess the financial capability of low-income workers, and then design and deploy educational programs that promotes
their capability to use and understand appropriate financial products and services,
Investigate the extant financial products & services to evaluate whether the needs of these workers are being fulfilled.
With the aid of a grant from Visa in 2015, Care Bangladesh introduced workplace-based financial education workshops
in RMG factories geared towards fostering greater financial capability of RMG workers. Subsequently, in order to better
understand the factors affecting the financial inclusion of female RMG workers, this study was commissioned by CARE
Bangladesh.

Design :Anupom Jony

Buzz Communications Ltd.
 SITUATION ANALYSIS
ON FINANCIAL INCLUSION FOR
FEMALE RMG WORKERS
2016
Situation Analysis On financial Inclusion For Female RMG Workers 01
02 Situation Analysis On financial Inclusion For Female RMG Workers
TABLE OF CONTENTS
Introduction i
Framework ii
Scope, Methodolody, & Limitations iii
Financial Circumstance & Behavior 1
Capacity To Avail Financial Services 6
Awareness Of Financial Services 7
Usage Of Financial Services 9
Accessibilty 13
RMG Workers As Women In A Conservative Society 15
Financial Services Adding Value 19
Conclusion 20
Appendix I – Demographic Information Of
I
Respondents
Appendix Ii - Bangladesh And The RMG Sector II

Situation Analysis On financial Inclusion For Female RMG Workers 03

the financial inclusion of
female RMG (“Ready Made
Garments”) workers.
INTRODUCTION
Recent studies done on different demographic segments in Bangladesh all came to the conclusion that
Bangladesh’s population lack awareness about different aspects of financial services1. They strongly
highlighted the benefits of financial inclusion amongst lower socio-economic strata as an efficient tool
to alleviate poverty without increasing income inequality2 , prompting various government, NGO, and
financial institutions to focus on financial inclusion.

As part of its ongoing initiative to improve financial inclusion, CARE Bangladesh commissioned this study
in order to gain a broader systemic understanding of critical factors that need to be addressed in order to
increase the financial inclusion of female RMG (“Ready Made Garments”) workers.

Specific Objectives

• Availability: Understand the financial services available to women RMG workers

• Accessibility: Determine the accessibility of existing financial services.
• Gaps: Understand the demand for financial services for RMG workers, and in doing so, identify
critical gaps in existing financial services.
• Social factors: Explore social factors that play a critical role in financial inclusion.
• Recommendations: Provide a series of recommendations on how to improve financial inclusion
among RMG workers.

1. Mustafa K. Mujeri (2015), Improving Access of the Poor to Financial Services, A Report prepared for the General Economics Division of the
Planning Commission to serve as a background study for preparing the 7th Five Year Plan (2016-2020) of Bangladesh.

2. UNCTAD(2014), Impact of Access to Financial Services, Including by Highlighting Remittances on Development: Economic Empowerment of Women and
Youth, TD/B/C.I/EM.6/2, 3 September.

04 Situation Analysis On financial Inclusion For Female RMG Workers

 The
secondary
research, along with
the feedback from the
FGDs, was used to compile
a list of existing financial
services that were
available to female
RMG workers.
FRAMEWORK
“Financial inclusion aims services of female RMG workers RMG workers. After examining
at drawing the “unbanked” • Relevance and accessibility of financial habits and desires,
population into the formal financial services by female RMG this list was used to check
financial system so that they workers whether theywere aware of the
have the opportunity to access • Social factors affecting listed financial services, and
financial services ranging from financial inclusion as perceived whether they were ableto peruse
savings, payments, and transfers by female RMG workers and operate the listedfinancial
to credit and insurance,” services.
according to the Asian As part of the exploratory
Development Bank3. research, in addition to desk Subsequently, the survey
based research, two Focus tested whether these financial
Thus, in order to better Group Discussions (“FGDs”) services were relevant in the
understand the factors affecting were conducted.The subsequent lives of female RMG workers.
financial inclusion in female survey based research was Are these financial services
RMG workers, the following designed to explore issues accessible? Are they being
were tested using indicative regarding financial services used? How? Why aren’t they
questions: as perceived by female RMG being used? Furthermore, one
workers. The survey was of the key issues uncovered by
• Financial circumstance and designed with open-ended and the exploratory FGDs was the
behavior of female RMG workers dialogue-based components, influence of social factors on
• Capacity of female RMG in order to discover, in depth, the financial behavior of female
workers to avail financial the issues hindering greater RMG workers, and was,thus, also
services financial inclusion. explored in the survey.
• Awareness of Existing financial This data was then used to draw
services by female RMG workers The secondary research, along conclusions about indicative
• Usage habits of financial with the feedback from the issues that should be studied in
3. Alfred Hannig and Stefan Jansen (2010), FGDs, was used to compile a further depth.
Financial Inclusion and Financial Stability: Cur- list of existing financial services
rent Policy Issues, ADBI Working Paper Series, that were available to female
No. 259, December.

Situation Analysis On financial Inclusion For Female RMG Workers 05

 SCOPE, METHODOLODY, & LIMITATIONS
SCOPE supplemented by the findings a confidence level of 95%. This
CARE Bangladesh commissioned from a report, commissioned by would statistically require 384
this study in order to discover CARE Bangladesh, on Financial samples. In order to account for
issues hindering financial Inclusion for women RMG errors, 6% additional samples
inclusion for female RMG workers by Dr. Binayek Sen. were interviewed, for a total of
workers. In order to uncover 407 samples. Cluster Sampling
underlying problems as Focus Group Discussions was used in the Narayanganj
perceived by female RMG In depth discussion was and Gazipur industrial belts
workers, a broad range of issues carried out in 2 Focus Group around Dhaka, Bangladesh.
was covered by this study, Discussions about Financial The factories within the cluster
from the knowledge, attitudes, Inclusion, financial knowledge, were selected at random with
desires, habits, preferences, behavior& habits, and about the appropriate distance between
awareness, capability, accessibility & availability of factories.
influences, etc. of these workers financial services. Social factors
regarding financial issues and affecting women RMG workers’ Respondents were interviewed
services, to the relevance financial circumstances were from 40 factories, with 33
and accessibility of financial also discussed. The sessions, factories having 10 respondents
services, and the social factors conducted in Gazipur with drawn from each factory, and 7
affecting these women. women who had received basic factories having 11 respondents
financial literacy training from drawn from each factory
METHODOLOGY CARE Bangladesh, were more In the survey, respondents
The findings in this report than 90 minutes long. One were recruited at random
are based on a mix of desk- session had 6 participants, and at lunch and end-of-shift
based research, focus group the other had 9 participants, all hours. Due to the exploratory
discussions, and a survey of of whom were representative of nature of the survey, many
women RMG workers. the typical profile of female RMG questions were open ended,
workers. and dialogue based. As such,
Secondary/Desk Research a majority of the surveys were
Desk-based research involved Survey of RMG Workers taken by female surveyors at
understanding country-level There are approximately 2.8 the respondent’s home in the
context related to financial million female RMG workers, evening or over the weekend.
inclusion for female RMG about 70% of total RMG workers. A small portion of the surveys
workers. The research was The survey was conducted at a were taken at the recruitment
confidence interval of 5% and site at the factories.

06 Situation Analysis On financial Inclusion For Female RMG Workers

Data gathered

1. Awareness of financial services & brands,

2. Case Study of financial service usage,
Availability 3. Image statements catering to financial challenges faced,
4. Perception of challenges of financial inclusion,
5. Usage of financial services

1. Brainstorming for financial needs,

2. Effects of interpersonal relationships on financial services,
3. Simulation of financial transactions,
Relevance 4. Level of interest towards financial services,
5. Process of availing financial services,
6. Identifying capabilities that require development

1. Influencers,
2. Case on influence,
Social Factors 3. Specific effects of influencer in financial decision making,
4. Perception towards influencers

Gaps 1. Gaps in financial services as perceived by the respondents

1. Consideration towards financial services,

Recommendations 2. Perceived benefits and drawbacks,
3. Recommendations and areas of improvement

The following broad information areas were covered in the survey:

LIMITATIONS
Only female RMG workers were queried, on a wide range of topics; some of which were open-ended and
dialogue-based. No single topic was covered in detail; indicative questions were used to find broad
themes.

Situation Analysis On financial Inclusion For Female RMG Workers 07

 “If my husband helps, we can
save for our future.”
– Female RMG Worker

FINANCIAL CIRCUMSTANCE & BEHAVIOR

LIFE PRIORITY
The chart below lists the respondents life priorities, GQ1: LIFE PRIORITY MATRIX
in which the lower the AVG Ranking score, the more 3.00 Sending money to
priority something has. Family’s food and rent is the 2.80 Getting married village home

most important priority for most people, and it is 2.60 Fringe Secondary Necessity
2.40 Parent’s Health
also the most selected. The second most selected is Children’s Saving for the
AVG RANKING

2.20 Purchasing land education future

savings for the future. 2.00
1.80
1.60 Family's food and
For married garment workers, Children’s education Niche Essential rent
1.40
and savings for the future is of greater importance 1.20
1.00
compared to unmarried individuals. Unmarried 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
individuals showed greater concern for Families’ SELECTION %
food and rent.

LIFE PRIORITIES Unmarried Married Total

Families food and rent 97% 88% 89%

Children’s education 11% 52% 46%

Parent’s Health 39% 14% 17%

Getting married 11% 2% 3%

Saving for the future 75% 80% 79%

Purchasing land 15% 21% 20%

Sending money to village home 51% 42% 43%

08 Situation Analysis On financial Inclusion For Female RMG Workers

PROPENSITY TO SAVE
62% of the respondents were saving for the future.
A greater percentage of married women were saving
compared to unmarried women.
PROPENSITY TO SAVE
The respondents weighted average yearly savings Married Unmarried Total
target was BDT 22,111. This is much lower than Yes 68% 46% 62%
the targets set by people who received financial
training in general, as seen in the two Focus No 32% 54% 38%
Group Discussions of female RMG workers who had
received Financial Literacy Training. Savings targets
mentioned by the FGD participants were generally
above BDT 50,000.

INVESTMENT PRIORITIES
The chart shows the current investment priorities of CURRENT INVESTMENT PRIORITIES
the respondents, with lower ‘AVG Rankings’ having 3.00
more priority. So, Properties and Bank Deposits are 2.80
Optional
2.60
considered as the two investment options that have 2.40
Jewellry
Mass alternate
Business
the most priority. They were also two of the three 2.20
Domestic Animals
Electronic Goods
AVG RANKING

Marriage
most selected options. Over 50% of the respondents 2.00
Healthcare
Furniture
Education
also chose furniture as an investment priority. 1.80 Bank Deposit
Properties
1.60
1.40 Niche Popular Choice
A survey of preferred life events reveal that 66% of 1.20
the respondents want access to loans, while 33% 1.00
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
of the respondents would prefer to have a bank or SELECTION %
Bkash account under their own name.

Top 3 Preferred life events Selected Average rank

A higher salary 95% 1.1

Lower rent & food prices 89% 2.2

Access to loans 66% 2.5

Bank or Bkash account under own name 33% 2.4

Financial literacy training 15% 2.7

Purchasing land 21% 20%

Sending money to village home 42% 43%

Situation Analysis On financial Inclusion For Female RMG Workers 09

 ALL TRANSACTION PREFERENCE
SALARY
In the survey, 99.5% of the respondents said that they currently receive their salary in Cash.
Additionally, in the survey, respondents were asked how they would prefer to receive their salaries; cash,
bank, Bkash, or a mixture.

How do you want your salary? Preferred method of salary receipt

81% 12% 7% 70% 24% 4% 1%

Cash Bank Bkash Cash Bank Bkash Mixed

The result showed that 24% of the population would prefer to receive at least a portion of their salaries
using financial services, while 5% would prefer to receive their the full salary through financial services.
Consolidating the amount that the participants indicated that they would prefer to receive through
financial services, the data showed that 19% of aggregate salary would be preferred through bank or
Bkash.

SAVINGS
RMG workers considered 3 options for savings; purchasing land, business investments and fixed deposits.
Those who stated that they saved, preferred fixed deposits. Those who didn’t, preferred investing in land.
Also, RMG workers who stated that they have control over their finances, preferred to invest in land

People Finances Finances

People who
Total who do controlled by controlled by
Save
not save oneself others

Savings Account 13% 14% 11% 16% 12%

Fixed Deposit 20% 29% 7% 14% 22%

Investment 22% 20% 24% 15% 23%

Land 30% 25% 39% 36% 29%

Jewelry 10% 9% 13% 15% 10%

Personal Loan 5% 4% 6% 3% 5%

10 Situation Analysis On financial Inclusion For Female RMG Workers

Households with Jointly controlled finances yielded the highest propensity to save. On the other hand,
RMG workers who stated that finances were controlled by their husband, had the lowest propensity to
save.

Finances
Finances controlled Finances Finances controlled
controlled by
by Husband controlled jointly by family
oneself
Save 51% 42% 67% 59%

Do not Save 49% 58% 33% 41%

Situation Analysis On financial Inclusion For Female RMG Workers 11

 CAPACITY TO AVAIL
FINANCIAL SERVICES
The basic capacity to avail financial services was tested through the following parameters:

NID
Only 3 out of 4 respondents had national IDs, which is a mandatory requirement in order to avail register
for various financial services.

BANK ACCOUNT
Only 26% of the respondents had bank accounts. On average, these respondents had last used their
bank accounts about 4 months ago, suggesting that even those who do have accounts, do not use them
regularly.

BKASH ACCOUNT
Only 3% of the female RMG workers currently have their own Bkash account. As stated earlier, they are
heavily dependent on agents.

MOBILE PHONES
78% of the respondents have mobiles phones but only 5% of the population have smartphones.

ATM BOOTHS
57% of the respondents did not know what ATM booths are for. Only 29% stated the correct use of
ATMs. Only 2% had used an ATM before, and only 8% of the population felt that they could use an ATM
unassisted.

FINANCIAL TRAINING

26% 3% 29% 75%

78% Knew what Want
74% Have Bank Have Bkash Have Mobile
Have NID Accounts Accounts ATM booths Financial
Phones are for Training

75% of the respondents stated that they would benefit from learning about financial services.

12 Situation Analysis On financial Inclusion For Female RMG Workers

 AWARENESS OF FINANCIAL SERVICES
WHAT DOES FINANCIAL SERVICES
MEAN TO RMG WORKERS?
Financial Services are understood to be the broad Meaning of Financial Services:
range of economic products & services provided by a
wide range of financial institutions. However, most Financial transactions 52%
RMG workers did not have a clear understanding of
what financial services entail. 52% thought that Loans 18%
it was financial transactions only; 32% associated
financial services with a single type of financial Deposits 7%
service such as ‘Loans’, ‘Deposits’, or ‘Money
Transfers’. Mobile Money Transfer 6%

35% of the people who explicitly stated that they Others 1%

did not know what financial services meant, were
not using any type of financial service. However, Do not Know 16%
everyone who answered was using some form of
financial service.

Top of Mind Recall Spontaneous Recall Total Recall

Money transfer 67% 87% 98%

Bank Loan 7% 37% 70%

Insurance 4% 28% 59%

Fixed Deposit 11% 37% 53%

Micro-credit 2% 12% 26%

Co-operative Monthly Deposit 1% 5% 11%

Co-operative Loan 0% 2% 7%

Situation Analysis On financial Inclusion For Female RMG Workers 13

 AWARENESS OF FINANCIAL PRODUCTS & SERVICES
Awareness of Financial Services was tested by asking respondents to mention the Financial Services that
they are aware of. ‘Top of Mind Recall’ represents the answers that respondents provide on their own.
‘Spontaneous Recall’ also represents services that were recalled with the aid of conversational cues from
the interviewer. Top of Mind, Spontaneous and “Aided Recall”, which represents services that were recalled
after being named by the interviewer, are together shown as ‘Total Recall’. Female RMG workers were able
to recall mobile money transfer almost universally, and the mobile money transfer service provider Bkash
was used synonymously with this type of financial service. As seen in the table above, most RMG workers
were not highly aware of the remaining types of Financial Services.

AWARENESS ABOUT FINANCIAL SERVICE PROVIDERS

When asked about their awareness of providers of Financial Services, Bkash was the most highly recalled
financial institution, at 72% ‘Top of Mind Recall’. There was some awareness of Grameenbank at 12% ‘Top
of Mind Recall’. The respondents did not show significant ‘Top of Mind Recall’ for other Financial Services
providers.

The respondents had very little awareness about card companies, Visa, Master Card and American Express,
which is in line with our finding that 98% of the respondents have never used an ATM before.

Top of Mind Recall Spontaneous Recall Total Recall

BKash 72% 12% 86%

Grameen Bank 12% 15% 40%

Dutch Bangla Bank 6% 19% 40%

Sonali Bank 3% 16% 34%

Islami Bank 4% 17% 33%

Janata Bank 1% 8% 23%

BRAC Bank 1% 8% 22%

Agrani Bank 1% 3% 13%

Mobi Cash 0% 1% 3%

American Express 0% 0% 2%

Visa 0% 0% 1%

Eastern Bank 0% 0% 1%

UCB 0% 0% 1%

Sure Cash 0% 0% 1%

Master Card 0% 0% 0%

14 Situation Analysis On financial Inclusion For Female RMG Workers

USAGE OF FINANCIAL SERVICES
Available services and products offered by the present banking industry include a range of saving
accounts, commitment saving accounts, a range of consumptions and production loans as well as access
to fund transfer services. Insurance companies also provide several insurance policies covering life
disability, health coverage, possessions for loss or damage of properties etc. The table below summarizes
the minimum requirements of these services and products.

Products/Services Requirements/Features

• Account is started with at least some deposited money

• Balance cannot be zero
• Interest is offered based on the deposited amount
Savings Account
• A minimum specified amount should be in the account to avoid
closure
• Depositor should be above 18 years old

• A fixed sum of money is required to be deposited

• Interest rate may or may not be stated
• Interest rate may vary depending on the plan and the deposited
amount
• The depositor is subject to a fine if any monthly installment is
Deposit Premium Scheme
missed
• No interest/profit is given if the depositor fails to adhere to the
plan within the first six months, but the principal amount can be
withdrawn
Depositor should be above 18 years old

• Amount can be borrowed by the account holder under specific cir-

cumstances such as the purchase of assets
• Loans usually require collateral
• Terms and condition usually vary depending on the purpose of the
Loan Facility loan
• Loan repayment involves regular installments with a specified rate
of interest
Irregular repayments of the loan are subject to penalties that are
specified by the agreements

• Money transfer from one account to another and also from one bank
Money Transfer Services to another is available for the account holder
Remittance inflow is allowed, however outflow is not allowed

• Insurance coverage for life & assets

Insurance • Savings and DPS facilities
• Must be at least 18 years of age or older

Situation Analysis On financial Inclusion For Female RMG Workers 15

 This study identifies some reasons for or against the usage of each financial service, as perceived by the
respondents.

User
Financial Services Perceived Reason for Using Comments
Rate

• Most use an agent

• To send money to village (84%)
account to send
• Easy and faster process (93%)
Mobile Money Transfer 87% • Widely available
money instead of
using a personal
Secure
account (93%).

• Knowledge about
deposit schemes
• To avail DPS facility (9%)
identified by 25% as
• To benefit in future (17%)
Deposit/ Savings 29% • To ensure safety/security of
a hurdle
• 22% were concerned
the money (68%)
about their level of
earning

• To develop an asset (53%)

• Many of the loans
• For personal benefit (28%)
Loan 8% • Payback of the loan was
were taken to acquire
properties (40%)
convenient (11%)

• Another secure source of

• Insurance was
saving money (57%)
viewed as being
• Benefits with lump-sum money
Insurance 4% given at the end of the policy
untrustworthy/
unreliable by many of
period (13%)
the respondents

MOBILE MONEY TRANSFER

93%
The survey indicated that 87% of the
respondents had used mobile money
transfer services in the last 12 months.
Some factors that supported this high
degree of usage was the ease of use
facilitated by on-site agents, accessibility, Only uses Mobile Money Transfer
and convenient opening hours. 93% of the through on-site agents
respondents reported that they have used
the service because it is quick and easy to
use.

16 Situation Analysis On financial Inclusion For Female RMG Workers

Those who use mobile money transfer services are most
likely to use it through the assistance of an on-site Money transfer Preferences
agent rather than using it from their own account.
96% of the respondents have used the agent’s account
to avail the Bkash service and 93% of the respondents
only use agents to do so
According to the survey, 73% of female RMG workers
send money through Mobile Money Transfer. Conversely,
26% have their money conveyed by travelers. Of
the people who use money transfer, 93% takes the 73% 26% 2%
assistance of Mobile Money Transfer Agents.
21% of the users would prefer to alternate between
one transfer method and another. For example, they
would not send money through Mobile Money Transfer
every time. Rather they would switch and shuffle the
methods.
Sent through Someone Bank Card
A common complaint of the respondents was that Mobile Money Transfer
Bkash rates are too high.

DEPOSITS/SAVINGS
65% of the respondents stated that they have monthly savings targets.
The percentage is even higher for married individuals.

22% of the respondents had the opinion that they don’t earn enough
to open and maintain a savings or DPS account. The monthly household
income of these respondents were about Tk 1,700 lower than the mean.
22%
Feel that they don’t have
savings because they
Likewise, 34% of the respondents want to open bank accounts when their don’t earn enough
salary/income goes up.

18% of the respondents are reluctant to keep their savings in the banks
due to low interest rates. According to Bangladesh Bank website,
Interest rates vary from 4% to 7% for the state owned banks and from
2% to 7% for the private commercial banks.

LOANS
RMG workers tend to have a negative perception
regarding their eligibility as a borrower from a
bank. The loan disbursement procedure of banking
institutions usually requires some collateral. Our
research shows that 22% of the respondents think that “Banks don’t give
they are not eligible for a bank loan, while 7% of the
respondents fear that their income is not sufficient to loans to us”
repay the debt.

On the other hand, respondents who took loans, stated – Female RMG Worker
that documentation is a hurdle to be overcome. 91%
of the respondents who availed loan products, stated
that submitting photos, copies of National ID, property
deeds, forms etc. was troublesome.

Situation Analysis On financial Inclusion For Female RMG Workers 17

 ACCESSIBILITY
The participants in the FGDs had said that banks were inconvenient to use because opening hours
clashed with their working hours. Banking was also viewed as being a difficult process. Furthermore, the
process of opening a bank account is troublesome or unclear to many of the workers.

The survey supports this view, as only 29% of the respondents thought that Banking is easy to use. On
the other hand, ease of mobile transfer is considered to be high with 78% stating it to be easy. 9% of the
respondents of the survey, reported that the process of opening an account is bothersome and difficult.
66% of the respondents thought that they needed to semi-literate or literate in order to avail financial
services. The majority believed that Banks are crowded during payday.

Ease of Banking Ease of mobile money transfer

Easy 29% Easy 78%
Moderate 51% Moderate 22%
Difficult 20% Difficult 1%

Timing of banks Timing of mobile money transfer

Convenient 34% Convenient 82%
Neutral 45% Neutral 13%
Inconvenient 21% Inconvenient 6%

Literacy Required for Banking

“I am not educated enough to use
Illiterate 34%
banking services.”
Semi-literate 45%
Literate 21%
– Female RMG Worker

There are almost 16 million bank accounts in Bangladesh, of which only about
21,500 belong to RMG workers.
– Bangladesh Bank

18 Situation Analysis On financial Inclusion For Female RMG Workers

 RMG WORKERS AS WOMEN IN A
CONSERVATIVE SOCIETY
The discussion in the FGDs had indicated that social factors had some degree of influence on some
female RMG workers. The participants in the FGDs, who had received some basic training on financial
planning, even mentioned instances of abuse, and were vocal about the need to control their own
finances, e.g. by having bank and Bkash accounts under their own names. However, even though the
surveys were conducted by female interviewers, mostly at the respondent’s homes, they were not always
comfortable speaking about these issues. Further study needs to be done, in depth, to explore how social
factors are influencing female RMG workers’ behavior regarding finances.

Takes advice Is depended

Trusts with Money Depends on
from on

Spouse 63% 66% 69% 18%

Eldest Son/Daughter 6% 8% 6% 40%

Other children 0% 1% 6% 22%

Parents 24% 54% 19% 27%

Siblings 12% 7% 6% 15%

Other Relatives 7% 2% 0% 1%

Neighbors 9% 0% 0% 0%

Friends/Peers 9% 1% 0% 0%

Colleagues 9% 1% 4% 0%

Situation Analysis On financial Inclusion For Female RMG Workers 19

 Who decides how to spend your salary

CONTROL OVER EARNINGS

Not all female RMG workers reported full control over
their earnings. Only 25% of the RMG workers claimed
to have full control over their own finances. 44% 28% 25% 3%

Most female RMG workers do not have full control

over their earnings, and the participants in the
Focus Group Discussions were vocal about their
desire for greater control over their earnings.
I use what I need, then I hand over salary to
hand over to someone else someone else
Only I No Response

Control over finances for female RMG workers

100

84%
80

60 56%

44%
40

20
10%
3% 3%
0% 0%
0
Self controlled Husband Jointly controlled Family controlled
controlled by husband a self

Married Unmarried

20 Situation Analysis On financial Inclusion For Female RMG Workers

CONTROL OVER ASSET ACCUMULATION
Only 20% of the respondents owned assets. However, the assets were not owned under their own name,
even when the RMG worker’s income had been used to purchase the asset.

Others own asset with respondent’s income

Yes No No Response
Owns asset 11% 9% 1%
Does not own asset 9% 63% 3%
No Response 0% 2% 1%

Asset ownership status

76% 75% “I bought some land. This

Owns Asset was later used as a bar-
Others own gaining chip to force me to
asset with
respondent's buy my husband’s brother a
income
shop.”
20% 20%
– Female RMG Worker
6%
4%

Yes No No Response

A significant percentage of RMG workers aspired to buy residential land for themselves. DECISION-MAKING

Type of asset owned

Asset bought
for self
40%
38% 35% Asset bought
26% 23%
for others
23%

13%
6%
0% 1%

Residential Agricultural House Store Domestic

Land Land animal

Situation Analysis On financial Inclusion For Female RMG Workers 21

 INFLUENCE IN THE HOUSEHOLD
47% of the respondents stated a neutral to negative response when asked about their decision making
position in their household. This also points toward a critical gap in the RMG workers social position.

Support for Personal Bank Account 54% 46%

Support for Personal BKash Account 51% 49%

Dispute regarding personal bank account 12% 88%

Report daily finances to husbands 54% 46%

Dispute on payday 8% 92%

Husband reports daily finance to respondent 71% 29%

Keeps savings under husband's name 32% 68%

Yes No
FINANCIAL FREEDOM AS MARRIED WOMEN
Some limitations were unique to married RMG workers. The husbands of 46% of married female RMG
workers did not approve of personal bank accounts for their wives. The number rises to 49% for personal
BKash accounts under one’s own name.

As married women, husbands’ support becomes critical if the wives are to enjoy greater financial
inclusion. Our analysis shows that women who have their husband’s support have a 20% higher
probability to have bank accounts.

“My husband shouts if I

ask for permission to open
a bank account.”
– Female RMG Worker

22 Situation Analysis On financial Inclusion For Female RMG Workers

 91% of respondents agreed
that financial services
would add value to their
lives.

48% of the respondents

did not feel that they knew
enough about financial
products & services.

65% of the respondents

stated the need for
financial training.

FINANCIAL SERVICES
ADDING VALUE
91% of respondents agreed that financial services would add value to their lives. 83% felt that they are
eligible to receive financial services, indicating confidence among the female RMG workers.

Completely Somewhat Somewhat Completely

Neutral
Disagree Disagree agree agree

Financial services are safe to use 7% 9% 4% 44% 36%

I can get justice/remuneration,

if I do not get proper financial 7% 15% 14% 23% 41%
service as promised
Financial services are easily
20% 20% 12% 34% 14%
accessible

It is easy to start using financial

5% 28% 10% 37% 19%
services

Situation Analysis On financial Inclusion For Female RMG Workers 23

 CONCLUSION
In order to gain a broader systemic understanding of critical factors that need to be addressed in order
to increase the financial inclusion of female RMG (“Ready Made Garments”) workers, the following were
tested using indicative questions;

• Financial circumstance and behavior of female RMG workers

• Capacity of female RMG workers to avail financial services
• Awareness of Existing financial services by female RMG workers
• Usage habits of financial services of female RMG workers
• Relevance and accessibility of financial services by female RMG workers
• Social factors affecting financial inclusion as perceived by female RMG workers

Three things that the respondents desired were access to loans, bank & Bkash accounts under their own
name, and financial training. With regards to savings, the study indicated that it is easier for female RMG
workers to save if they are married, and if they have their husband’s support.

Only 26% of the respondents had bank accounts, and only 3% had Bkash accounts under their own name,
even though 87% of the respondents use mobile money transfer. The respondents were almost all aware of
Bkash, as the predominant mobile money transfer provider. However, respondents were not very aware of
any other service providers. Widespread use of mobile money transfer, as perceived by the respondents, is
helped by its convenience and ease of access; readily available on-site agents facilitating transfers.

However, most users needing to be assisted by agents indicates that they would benefit from more
knowledge about financial issues.The study indicates that female RMG workers want to use financial
services, for benefits that include loans, savings, their own bank/Bkash accounts, etc.

The study also indicated that many female RMG workers may not have full control over their earnings.
Thus, financial services that enables a female RMG worker to exercise greater management of her finances
may empower her, and facilitate greater savings and more financial control.

As such, further studies should be conducted in more detail, in order to find out the impact of providing
financial learning, of using financial services that allow greater control over one’s earnings, and of gaining
approach to more accessible financial services.

24 Situation Analysis On financial Inclusion For Female RMG Workers

 APPENDIX I –
DEMOGRAPHIC INFORMATION OF RESPONDENTS
Maritial Status Age Profile

15% 14%
19%

24%

85% 42%

Between 20-29 Greater than 30

Single Married
Between 25-29 Less than 20
Education Household Income

7%
9% 7%
33%

52%
22%
32%

28%

School till grade 4 No formal education Tk 10,001- 15,000 Tk 10,000 & Less
School till grade 9 SSC/HSC/Other Tk 15,001- 20,000 Tk 20,000+

Situation Analysis On financial Inclusion For Female RMG Workers 25

 Female RMG workers generally do not
First JOB expect to work beyond their twenties,
37% and will thus have a working life-
expectancy of about a decade.

Avg Yrs in current Avg Yrs of RMG

RMG factory Experience

1.6 TOTAL 3.1

2.3 30+ 5.0

2.2 25-29 3.8

1.4 20-24 2.8

0.9 15-19 1.7

26 Situation Analysis On financial Inclusion For Female RMG Workers

 APPENDIX II -
BANGLADESH AND THE RMG SECTOR
Bangladesh is a developing country with an extraordinary story of progress, growth and
development.

BANGLADESH AND ITS PEERS

China India Indonesia Bangladesh Philippines Vietnam Thailand Malaysia
Demographics
Population
1,355 1,236 254 166 108 93 68 30
(million)
Population
Growth
0.6 1.4 0.95 1.8 2.0 1.2 0.7 2.3
2000-2014
%
Urban
Population, 54.4 32.4 53.0 33.5 44.5 33.0 49.2 74.0
% of total
Population
less than 25 31.8 46.6 43.3 51.1 52.7 42.1 32.6 45.7
years,%
Households
402 21.8 53 35 19 22 19 5
(million)
Socioeconomic Indicators
Nominal GDP
10,360 2,048 856 173.8 290 188 381 337
(USD billion)
Real GDP
growth
9.8 7.2 5.5 5.9 5.1 6.5 3.8 4.8
2000-2014,
%
GDP per
capita
12.9 5.8 10.2 3.4 7 5.6 14.4 24.5
(PPP) (USD
thousand)

Situation Analysis On financial Inclusion For Female RMG Workers 27

 Bangladesh’s cost-effective human capital and favorable demographics is expected to fuel further
growth.

Labour Cost advantages Average Manufacturing Wages

One quarter (25%) of the Labour Cost in China and the gap is growing
500 AVERAGE MANUFACTURING WAGES 500
Apparel manufacturing Labour costs 2008, USD/hr
450 BANGLADESH 450
CHINA
400 400
Thiland
350 350
Malaysia
China (Coastal) 300 300
philippines
China II (Coastal) 250 250

China III (Inland)

India 200 200
Indonesia
Sri lanka
Vietnam 150 150

Pakistan
Cambodia
Bangladesh
100 100
0.0 0.3 0.6 0.9 1.2 1.5
2002 2004 2006 2008 2010 2012
USD/hr

Demographics
Stable growth and low volatility
Average real GDP growth around 6% since 2000 166 million inhabitants of which 80 million are in the labour force,
Real GDP Growth % median age is 24.3
75 %
7

6
70
5

4 65

60
2

1
55
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
0
BD CN IN LK VN ASEAN 4 (MY,ID,PH,TH)

The economy of Bangladesh has been steadily growing.

Positive current account Export Growth

7.6 million Bangladeshis are working abroad submitting Average growth of 15% per year over the decade, accelerating in recent years
remittances of USD14.2 billion in the fiscal year 2014 Bangladesh exports, USD billion (297% growth in the past decade)
Remittance flows, USD billion
20 35
Remittance 30.2
15 CA ex-remittances 30
CA Total 27.0
10 24.3
25 22.9
5
20 16.2
0 15.6
15 14.1
12.2
-5 10.5
10 8.7
-10 6.5 6.0 6.5 7.6
5
-15
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0
Source: Bangladesh Bank. Data shown is for the fiscal year, 1 july-30june

28 Situation Analysis On financial Inclusion For Female RMG Workers

Situation Analysis On financial Inclusion For Female RMG Workers 29
 Reliance on Foreign Aid is dropping

12 Per cent of GDP Per cent of GDP 12

10 Aid 10
Remittance

8 8

6 6

4 4

2 2

0 0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Aid as % of ADP
120

100

80
Aid as %
60 of ADP
Aid as %
40 of Budget

20

0
1970 1980 1990 2000-2008 2013

30 Situation Analysis On financial Inclusion For Female RMG Workers

Bangladesh has made significant progress in the Human Development Index category over the last 20
years. Between1980 to 2014 Bangladesh’s HDI value increased from 0.338 to 0.560, an increase of 68.7%
or an annual increase of about 1.55%.

2
1980 1985 1990 1995 2000 2005 2010 2015

Life Expectancy Education GNI Per Capita HDI

Situation Analysis On financial Inclusion For Female RMG Workers 31

 RMG Sector Overview
Bangladesh is one of the largest RMG exporters in the world; second only to China. The RMG sector is the
backbone of the Bangladesh economy, contributing 18% to the country’s GDP, and employing about 4
million employees, 85% of whom are women, across 4,222 garments factories.

RMG Exports (USD billions)

25.5

12.37

4.95
2.6

1995-96 2000-01 2007-08 2014-15

32 Situation Analysis On financial Inclusion For Female RMG Workers

Recent Landmark Achievement in the RMG Sector of Bangladesh
Plummy Fashions Ltd earned prestigious LEED Platinum certification from USGBC with record breaking
score of 92 points. Plummy Fashions is the first ever knitwear manufacturing unit of the world who got
LEED Platinum level certification and no other factory could achieve 92 points under USGBC in the world
history so Plummy Fashions Ltd can claim themselves as The Greenest factory of the world!

% RMG Share in National Export & GDP

90
80
70
60
50
40
30
20
10
0

Share in National Export (%) Share in GDP (%)

Situation Analysis On financial Inclusion For Female RMG Workers 33

 FEMALE RMG
WORKERS

34 Situation Analysis On financial Inclusion For Female RMG Workers

 CARE Bangladesh
RAOWA Complex (Level 7-8), VIP Road, Mohakhali, Dhaka -1206, Bangladesh
PABX: +(880) 2 9889009
Fax: +(880) 2 9118347, Email: bgdinfo@care.org