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Bangladesh has made remarkable strides in digital transformation over the past decade. This progress has been driven by rapid mobile connectivity, the rise of fintech, and the gradual digitization of government services. However, much of this growth has taken place through isolated platforms. Because these systems lack interoperability, users often face fragmented experiences and inefficient service delivery.
As the country moves toward graduating from Least Developed Country (LDC) status by 2026, the need for a cohesive and future-ready digital ecosystem is more critical than ever. A well-integrated digital infrastructure can enhance governance efficiency, expand financial inclusion, foster innovation, and strengthen Bangladesh’s global competitiveness.
To support this transition, the Asian Development Bank (ADB) launched a regional diagnostic on Digital Public Infrastructure (DPI) across South Asia. This initiative aims to assess opportunities and readiness for interoperable and scalable systems. The Bangladesh component focuses on evaluating the current digital landscape, examining policy and institutional preparedness, and identifying strategic areas where ADB can offer targeted support for DPI development.
As part of this effort, LightCastle Partners, working with Dalberg as the regional partner, explored how Bangladesh can strengthen its foundational digital systems. This would accelerate inclusive growth and improve the quality and efficiency of public service delivery.
LightCastle Partners led the in-country research and stakeholder engagement process through a comprehensive mixed-method approach. This combined ecosystem mapping, key informant interviews (KIIs), and validation workshops to ensure a robust evidence base.
Figure 1: Core components of DPI
The first phase of the study focused on a diagnostic assessment of existing digital systems and infrastructure. It evaluated the maturity and interoperability of platforms such as Smart NID, MFS-based payment systems, the ICT Division’s national digital architecture initiatives, and data center infrastructure. In addition, secondary research and benchmarking against regional comparators like India, Bhutan, and Maldives provided context and highlighted gaps and opportunities.
LightCastle also conducted more than 25 Key Informant Interviews with stakeholders from both public and private sectors. Interviewees included representatives from the ICT Division, Bangladesh Bank, a2i, BASIS, MFS providers, Praava Health, and VISA. These consultations offered valuable insights into ecosystem gaps, policy bottlenecks, and opportunities for stronger government–private sector collaboration.
Table 1: A summary of the DPI ecosystem of Bangladesh
Throughout the study, LightCastle synthesized data from national sources and stakeholder consultations. This helped identify areas of progress as well as structural bottlenecks in the DPI ecosystem. Bangladesh has achieved over 85 percent national ID coverage and rapid digital payment adoption through platforms like bKash and Nagad. These platforms now reach tens of millions of users each month.
However, the study found that these systems often operate in silos. Public databases and payment systems have limited interoperability, which restricts integrated service delivery. The government’s network of over 9,000 Digital Centers provides last-mile access for around 6–7 million rural users each month. Yet, service fragmentation and inconsistent data governance frameworks limit seamless user experiences.
Even with these challenges, significant opportunities are emerging. The study highlighted the potential for ADB to support cross-platform data exchange frameworks, regulatory reforms for digital identity portability, and innovation sandboxes to catalyze public–private partnerships. Expanding secure data-sharing infrastructure and aligning Smart NID with financial and social service systems could help create a unified, citizen-centric digital ecosystem.
As digital adoption accelerates, Bangladesh stands ready to move from incremental digitization to building a truly interoperable digital public infrastructure. This shift can enable inclusive, efficient, and trusted digital governance.
The findings of the DPI Bangladesh study show that the country is at a pivotal inflection point. Foundational elements such as Smart NID, national data centers, and a growing fintech ecosystem provide a strong base. However, greater system-level interoperability is essential to unlock the full potential of a digital economy.
The study identified several strategic opportunities for ADB’s engagement in Bangladesh’s DPI journey. These include:
Going forward, the insights from this diagnostic will guide ADB in structuring targeted investments, policy dialogues, and technical assistance for Bangladesh’s DPI ecosystem. By fostering stronger collaboration among public institutions, private innovators, and development partners, Bangladesh can move from a collection of standalone initiatives to a fully integrated, interoperable digital state. This transition will anchor inclusive economic growth and enhance the quality of public service delivery.
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