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 Micro Finance 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 would not previously been able to do so, making lending more inclusive. Demand for Sharia finance products in Bangladesh is increasing whilst Sharia finance has been inadequately supported by innovations in fintech.[1]

Speaking about the partnership with SBK, AGAM International’s founder and CEO, Shabnam Wazed, said: “Our provision of a Sharia digital microlending takes us a step further in achieving our mission of promoting financial inclusion in Bangladesh, especially among women and the gig-economy group. We are harnessing AI to transform traditional Sharia lending, making the process faster, efficient and fair.”

Sharia microcredit are the latest development in AGAM International’s partnership with SBK Foundation. It follows the September 2022 launch of Bangladesh’s first AI digital microfinance platform which made it possible for app-based entrepreneurs to access credit to purchase goods so that they can carry out their jobs. Two of the first businesses whose workers obtained loans from SBK Foundation through AGAM International are Shajgoj (the Bangladesh-based beauty ecommerce platform) and Food Panda (the Berlin-based Delivery Hero’s brand in Asia, a popular online food and grocery delivery platform in Bangladesh).

Under the partnership, SBK Foundation is able to draw on AGAM’s innovative credit scoring platform to enable financially underserved people to have access to finance, even when they lack a traditional credit history. AGAM’s AI based behavioural analysis backed credit scoring provides the SBK Foundation with the confidence to identify prospective borrowers and make accurate, speedy lending decisions enabling micro entrepreneurs to create value.

Today’s announcement sees garment factory workers, small business owners and entrepreneurs, be able to access credit to purchase essential groceries and access medical support via Apon Tech and Niramoy Health Tech Ltd and others. Enabling wider access to both of these services is key to the ability of AGAM International and SBK Foundation to improve the lives and livelihoods of these factory workers and entrepreneurs.

Founded in 2019, AGAM International, which means ‘advance’ in Bangla, is backed by the Development Bank of Wales, UK. It has a mission to enhance both lives and livelihoods of individuals and entrepreneurs by providing the infrastructure for financial institutions in growth markets to deploy innovative solutions to ensure better, and more inclusive service for their customers. AGAM International has developed a leading fintech platform which is set to reshape the financial sector landscape in growth economies with its integrable, customisable, scalable framework.

Sonia Bashir Kabir, Founder & Vice-Chairman of SBK Foundation said: “We are thrilled to be partnering with AGAM International with whom SBK Foundation shares a common vision to empower marginalized communities with technology and affordable access to finance. Our relationship is focussed on harnessing AI to revolutionise lending for 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 medication. We look forward to seeing the positive impact of our ongoing collaboration with AGAM International.”