Personal financial planning of the emerging middle-class in Bangladesh : a case study

Abstract

The main aim of this study is to understand whether there is a role and need for professional financial advice in Bangladesh. Accordingly, this study is multilayered and examines four secondary research objectives which succinctly concern current financial planning practices, confidence levels, and the attitudes and intentions of the emerging middle class in Bangladesh. Since the study is attitudinal in nature, psychological and socio-economic variables that are recognised in relevant theory, and in contemporary financial planning literature, are utilised to achieve these research objectives. The financial planning environment in Bangladesh, and any corresponding regulation or available financial planning products, will be recorded and presented to facilitate greater understanding of the research problem. There is a distinct lack of research available in respect of professional financial planning in different contextual settings, other than the developed and advanced developing countries. A number of trends identified around the world provide the impetus for professional financial planning in developing societies, which tend to vary culturally and in their socio-economic development. This study utilised a mixed method approach - employing both surveys and interviews - in order to understand financial planning practice, confidence, attitudes and intentions evident in Bangladesh. Results revealed that there is a need for a financial planning profession in Bangladesh. The study also found that, while the underlying reasons for financial planning awareness and attitudes were consistent with other research conducted in a developed economy context, variations existed that could be attributed to contextual factors, along with the differing regulatory environment of Bangladesh, especially trust and awareness of the professional services. These findings add to the existing financial planning theories and have important implications for the development of the financial planning profession. They further suggest that, besides individual factors, financial planning practice, confidence levels, attitudes and intentions may vary in various cultural and environmental settings, and for a financial planning profession to be established in a developing economy context, educational and regulatory issues need to be addressed first.

Date of Award	2021
Original language	English