UK Fintech AGAM International and SBK Foundation Pioneer First Digital and Sharia Only Micro Finance Product in Bangladesh
UK fintech AGAM International and Bangladesh’s leading microfinance institution, SBK Foundation, formally launch the first Sharia-based digital microcredit in Bangladesh today. The partnership will provide financial access to unbanked and underserved communities, including Ready-made Garment (RMG) factory workers, small business owners and gig economy workers. There are four million garment workers in Bangladesh, more than 58 percent of whom are women.
The Sharia finance product is designed to help individuals and small businesses who need access to financial resources but may not have the collateral or credit history required for traditional loans. Providing Sharia microcredit to the Bangladeshi population will enable thousands of workers and entrepreneurs to apply for loans who previously would not have been able to do so, making lending more inclusive. Demand for Sharia financial products in Bangladesh is increasing, while Sharia finance has been insufficiently supported by innovations in fintech.[1]
Speaking about the partnership with SBK, AGAM International’s Founder and CEO, Shabnam Wazed said: “Our offering of Sharia digital microloans takes us a step further in achieving our goal of promoting financial inclusion in Bangladesh, especially among women and the gig economy group. We are using AI to transform traditional Sharia lending, making the process faster, efficient and fair.”
Sharia microcredit is the latest development in AGAM International’s partnership with the SBK Foundation. It follows the launch of Bangladesh’s first AI digital microfinance platform in September 2022 that enabled app-based entrepreneurs to access credit to buy goods to run their jobs. Two of the first businesses whose workers received loans from SBK Foundation through AGAM International are Shajgoj (Bangladesh-based beauty e-commerce platform) and Food Panda (Berlin-based Delivery Hero’s brand in Asia, a popular food delivery platform and online groceries in Bangladesh).
Under the partnership, SBK Foundation is able to draw on AGAM’s innovative credit scoring platform to enable economically underserved individuals to have access to financing, even when they lack a traditional credit history. AGAM’s AI-based behavioral analytics-supported credit scoring gives SBK Foundation the confidence to identify potential borrowers and make accurate, fast lending decisions that enable micro-entrepreneurs to create value.
Today’s announcement sees garment factory workers, small business owners and entrepreneurs able to access credit to buy essential groceries and access medical support through Apon Tech and Niramoy Health Tech Ltd and others. Enabling wider access to both of these services is key to AGAM International and the SBK Foundation’s ability to improve the lives and livelihoods of these factory workers and entrepreneurs.
Founded in 2019, AGAM International, which means “progress” in Bangla, is supported by the Development Bank of Wales, UK. It has a mission to improve both the lives and livelihoods of individuals and entrepreneurs by providing the infrastructure for financial institutions in emerging markets to deploy innovative solutions to ensure better and more inclusive service for their customers. AGAM International has developed a leading fintech platform that is set to reshape the financial sector landscape in emerging economies with its integrable, customizable, scalable framework.
Sonia Bashir Kabir, Founder and Deputy Chairman of SBK Foundation said: “We are thrilled to partner with AGAM International, with whom the SBK Foundation shares a common vision of empowering marginalized communities with technology and affordable access to finance. Our relationship is focused on harnessing artificial intelligence to revolutionize lending to entrepreneurs and ‘gig » economy workers – many of whom are women. This innovative partnership focuses on supporting factory workers, enabling them to access credit to purchase essential supplies and medicines. We look forward to seeing the positive impact of our ongoing collaboration with AGAM International .”
