The dynamic world of business, nay, finance, is so pervasive these days that even the once-hyped buzzwords like blockchain and crypto are also normalized. Seeking greener pastures, we have done proper experiments to come a long, long way to make the laughable dreams come true (I mean, hey, nobody envisaged robo-trading in the earlier days, right? During the time of paper stocks or even a bit later?). We intertwined different branches of technology into finance to create a completely new segment called fintech. 

Nonetheless, as the notion goes in modern-day cricket, despite having T-20s, The Hundreds, T-10s, and whatnots, the one and original version is and always will be the Tests. Likewise, despite creating different genres of markets, derivatives, and segments, the basics will always be important, the core tenets of finance. 

Now, the writer might sound like Captain Obvious, so before you intend to bash his head in, one thing, not so fast! This rudimentary pill of knowledge is the foundation upon which we can use our different brush strokes and colors to create the magic of finance. On top of it, it is not something esoteric. This is a must-have, and this should be ubiquitous unless someone wants to do all social detox forever and leave society and go to Antarctica. Even then, that person has to buy some goods to survive, which requires transactions and money. Ergo, one cannot escape the ‘gnawing clutches’ of finance. So, if you cannot beat them, join them!

Now, let us pinpoint our focus to our dear motherland, Bangladesh. What is the scenario here? It used to make me sad how the concept of money itself is such a taboo, a stigma in Bangladesh. It seems that the taboo regarding talking about money or money matters was at par with the taboo regarding talking about HIV (both are something that people need to be aware of but are too shy to talk about).  

Bangladesh is an emerging tiger in terms of economy, so we need all hands on deck to propel our economy forward and make it even more sustainable. This requires financial inclusion, which generally means bringing the unbanked populace under the umbrella of financial services. To achieve that, both the money and capital markets must walk together and take the necessary steps. Regarding the Money Market, we have seen the regulatory body, Bangladesh Bank, and all the government and private commercial banks have undertaken steps to spread the light of financial literacy. However, what about the capital market?

Before that, let us ponder why we should care in the very first place. The total number of companies listed on the Dhaka Stock Exchange is 356. These companies are spread across 18 different industries or sectors. However, why should an industry need this to begin with? 

Let us break it down to its smallest unit first. We already know how the company raises money through the stock market and through initial public offering. Along the timeline, they can raise capital through equity financing by selling new shares. Not to give a finance lecture here, but there are some basic reasons why a publicly traded company places immense value on its stock price. Since the smallest unit of a company is the people, their perception is reflected through the share price. If the company is doing well, or perceived to be doing well by the shareholders or the general investors, it favors the employees in the company as well, it creates a safety cushion against hostile takeovers, and most importantly, the company can fly with even better routes, since it indicates better financial health. Overall, this makes the industry even stronger and more potent for investors of all kinds to invest their money, and ultimately, this hits our GDP. Even though it seems like the butterfly effect, this is no longer an esoteric concept; rather, it is widely known that the economy stands on the bulwark of all these issues.

Here comes the interesting bit: as we loop back to the original question, what about the capital market? Ask any random person off the street. You will get a negative answer. Their concept regarding capital market? Also, nada in most of the cases. In addition, whenever the concept of the capital market comes, people have this weirdly negative vibe. What percentage of it is true is another debate, but the major reason for this is not knowing. 

To ensure the financial inclusion process is sustainable, financial literacy is necessary. Sadly, Bangladesh has a meager 28% financial literacy, which falls far behind compared to the developed countries. The current educational system is not well equipped to arm the students with enough skill set required to have proper financial literacy. The issue of not talking about money used to be an accepted norm, and if someone talks about it, the taboo-ish vibe they used to get has already been covered. 

Overconfidence is a huge issue, as most of us have this ‘holier than thou’ and ‘know it all’ tendency where we think we know it, but intrinsic knowledge is absent in practicality. Shyness and fear also come into the fold, where if we get embarrassed to ask if we do not know, or get baffled (say early childhood disliking of interest related math maybe?) and keep on thinking this as something alien and way out of our comfort zone. 

In addition, there is another bias in the mix since the financial institutions handle our major financial decisions; we prefer not knowing, like having a car driver and just leaving the entire control to them. Yes, the financial professionals and the portfolio managers are there to assist and take your mind off things. That is their role, and they get paid to do that, but there should be curiosity alive on some level. Just the right ounce of check and balance is necessary. Not knowing is never the problem; the problem is the lack of acknowledging that we do not know something and the lack of effort in overcoming it.

Earlier, we used to say there were no certain guidelines or a well-structured format for spreading this financial literacy. While there is still some truth in it, the times have changed. It seems the entire country has woken from its slumber. Many financial institutions have taken steps to spread the literacy. Using its pragmatic vision, even the Government of Bangladesh collaborated with a2i (Access to Information) to “upscale the financial inclusion through financial education.” At the same time, this also falls under Goal 4 of the targeted 17 SDGs (Sustainable Development Goals), which states, “Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.” 

This is incorporated in Bangladesh’s National Financial Inclusion Strategy (NFIS-B). One of the goals of NFIS-B is mandated to “Promoting Financial Literacy and Consumer Empowerment.” As longwinded and artistic as it sounds, which often makes us think that maybe it is all bark and no bite, the actual scenario is also quite hope-inducing. 

BSEC (Bangladesh Security and Exchange Commission) has a Financial Literacy Department that wants to impart financial education to the masses. They have embarked on an Investor’s Education Program. In light of this, they have added the Nationwide Financial Literacy Program. They have a plethora of workshops and seminars on various topics related to financial literacy. Chittagong Stock Exchange has also undertaken training programs on various topics like the Securities Laws of Bangladesh, Mutual Funds, and whatnot. Dhaka Stock Exchange has been conducting training regularly every month on multi-varied topics like Fundamental Analysis, Technical Analysis, AML-CFT, IPO, Book Building, Corporate Governance Codes, etc. Recently, they have also been organizing workshops/seminars/awareness programs for universities like Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Jagannath University, and Bangladesh University of Professionals, either in DSE training academy or going to the respective universities. This is done to plant the seed of financial literacy in the befuddled hearts of the potential young professionals at the university. 

During the World Investor Week 2023, BSEC, along with DSE and CSE, organized a weeklong program, both physical and virtual, on various topics related to the capital market, where the speakers and the moderators were from different organizations like BMBA, CMSF, CDBL, BASM, BICM, ACRAB, CRISL, BAPLC, DBA, AAMC&MF, etc. It was a schlepp against the lagging behind rambunctious populace regarding the capital market. But the best part is that the entire capital market regulators, BSEC, DSE, CSE, and even the TREC holders out there, are organizing awareness programs for investors in general, and also women investors (since they are at times neglected owing to the patriarchal nature of the society), that too for free! Just to instill the knowledge in them!

Is it still enough? No. Only mere classes and theories will never ever be enough unless it is put into practice. Being human, we do not like to change; we hate the idea of accepting something new, and in most cases, as we become adults, the drive to learn something often has a retardation. Still, the capital market stakeholders have taken the herculean task of tying the bell to the cat. So, as much as we love to pin the authority for everything and try to make the flaws bigger than they already are, we can cut them slack when they put in the effort. Yes, there is always room for improvement, but maybe, someday, we will see us stop projecting negative views upon the capital market. Are you feeling like Hawk-eye, “Don’t give me hope!” or are you full of adrenaline after you listen to a motivational speaker? Let’s be the latter one, shall we?

Embarking on a journey in the rough waters of the financial world at the challenging harbor of Prime Bank PLC., Galib Nakib Rahman was elevated from an MTO to Executive Officer, revealed as a Money Market Dealer at the Treasury Division. After smooth sailing for 2.5 years, he altered his course to the rocky waters of the Capital Market, entering the exciting marina of Dhaka Stock Exchange PLC. as an MT, where he is currently a Senior Executive at the Corporate Governance and Financial Reporting Compliance Department in the Regulatory Affairs Division.

galibnakibrahman@gmail.com