Mobile financial services (MFS) are transforming the way money moves across borders. In Bangladesh, one of the world’s leading sources of migrant labor, these services offer faster, cheaper, and more secure channels for remittances. But beyond convenience, digital finance holds the potential to reshape gender roles and empower women economically. When women gain direct access to their earnings through mobile money, they build confidence, strengthen their financial decision-making power, and participate more fully in both domestic and international labor markets. [1]
Our research team conducted an exploratory study examining how MFS affect Bangladeshi women’s participation in overseas labor. Working in partnership with the Development Research Initiative (dRi), we surveyed 2,500 low-skilled migrant workers in Bangladesh. The respondents were divided into five groups of 500 each: women who have returned and do not plan to migrate again; women who plan to migrate again; women preparing for their first migration; and male returnees, with or without plans to migrate again. The goal was to understand how access to digital remittance services influences decisions about working abroad, continued employment overseas, and the barriers that shape adoption across gender lines.
The preliminary descriptive results support the existing evidence that economic motivation is a key driver of migration decisions. In our sample, 77%of women who no longer plan to migrate live in households earning less than 20,000 Bangladeshi taka [2] per month, while among women planning to migrate again, this figure drops to 64%. The correlation suggests that financial necessity continues to drive women’s migration, but those who have already migrated and accumulated some savings may be better positioned to plan a second journey abroad. Migration thus functions both as a livelihood strategy and as a stepping stone toward higher earnings and social mobility.
The results indicate that MFS also play an important role in shaping migration outcomes. When women can send, save, and manage their income independently, they gain a stronger sense of agency and autonomy, which may encourage continued labor force participation at home or abroad. Mobile money also reduces reliance on intermediaries, offering a safer and more transparent way to transfer funds home. For women who often face social or mobility restrictions, the ability to transact digitally can be transformative. On the other hand, when access to mobile money improves work opportunities at home, it may discourage women from going overseas for work. Around 50% of surveyed women who have returned home from overseas migration and are planning to migrate again have used mobile money remittance services, compared to 39% among those who have returned home and do not intend to migrate again. Although overall adoption remains low, this statistically significant difference between non-migrating and migrating groups suggests that opportunity and usage of mobile money for international remittance services is likely to have a positive effect on women’s overseas labor force participation. Notably, women planning another migration scored higher than their non-migrating peers in financial literacy, digital literacy, and empowerment, suggesting that capability and confidence go hand-in-hand with aspiration. Those who understand digital tools and financial systems appear more able to imagine and prepare for a new migration cycle.
Yet, despite the promise of mobile banking, our findings show that women are significantly less likely to adopt these financial services than men. When we compared male and female respondents, the gender gap in digital and financial inclusion became clear. Approximately 71% of male migrant workers used mobile money channels for international remittances, compared with only 45% of female migrant workers. This divide reflects the gendered digital gap in Bangladesh, where women have historically had less access to mobile technology, internet services, and digital financial platforms. It also suggests that men are more likely to benefit from the efficiencies and cost savings associated with digital transfers, while women remain reliant on less efficient, often more costly, informal or cash-based channels. Further, male respondents, on average, score higher than females in financial literacy, digital literacy, digital financial literacy, and empowerment indices. These findings reinforce the structural gender disparities in both human capital and agency, which continue to disadvantage women in accessing the benefits of migration.
In addition to a sharp gender divide in the adoption of financial services, the findings highlight a substantial gender gap in education and income. While 88% of men reported some level of formal education, only 66% of women did so. According to World Bank data, the national adult literacy rates in Bangladesh stand at 79% for men and 74% for women. Hence, the male migrants in our sample appear more literate than the average Bangladeshi male, whereas the female migrants are less literate than the average Bangladeshi female. This contrast underscores a selection effect: men entering international migration may represent the more educated segment of the male labor force, while women migrants often come disproportionately from lower-educated groups. Around 45% of male respondents reported monthly household incomes of 20,000 taka or more, compared with only 30% of women. Although more than half of men live in households earning less than 20,000 taka per month, the share is much higher among women, at 70%.
The overall picture that emerges is one of uneven progress. Compared to men, women migrants face multiple disadvantages: lower education, lower income, reduced access to mobile money, and weaker financial literacy. Yet, within the female population, there are clear signs that digital inclusion can enhance empowerment and economic participation. Women who can manage money digitally and send remittances securely are more likely to remain engaged in the international labor market.
The next phase of research will perform a rigorous empirical analysis of the effect of MFS on women’s overseas employment outcomes and long-term financial stability. Specifically, we will examine how financial independence in managing remittances impacts women’s employment outcomes, ultimately affecting their households’ long-term well-being. This includes analyzing outcomes such as employment duration and stability. The findings will provide valuable policy insights into how women’s overseas migration can be leveraged to promote sustainable development.
[1] De Gasperin, C., Rotondi, V., & Stanca, L. (2019). Mobile money and the labor market: Evidence from developing countries. University of Milan Bicocca Department of Economics, Management and Statistics Working Paper, (403).
Field, E., Pande, R., Rigol, N., Schaner, S., & Troyer Moore, C. (2021). On her own account: How strengthening women’s financial control impacts labor supply and gender norms. American Economic Review, 111(7), 2342-2375.
[2] At the time of writing, 20,000 Bangladeshi taka is equivalent to USD 162,39.
