Transformative Journey towards Financial and Digital Inclusion for the Underserved Population Qorus Reinvention Awards - APAC 2024-2025 - Winner

The current economy is rapidly gaining momentum in terms of digital transformation of payment system as well as sipping into the daily lives to be a part and parcel of the masses. However, in Bangladesh, a large portion of the population- the women, especially from the rural, low and moderate- income segment and women SMEs are often left behind when financing which leads to the ‘making women bankable’ initiative of BRAC Bank.

BRAC Bank starts an effort towards enhanced accessibility to finance and market for the relatively underserved communities whether it be Cottage, Micro, Small and Medium Enterprises (CMSMEs) or the large female population dispersed across the country with little to no financial opportunities or know-how through one-of-a-kind project in the banking industry in partnership with the Gates Foundation. The initiative by BRAC Bank is inspired to bridge this gap by bringing about a transformation in approaching the often financially marginalized segment of population in a novel approach of multi-functional effort meshing digital solutions, agent banking reaching the farthest corners of the country and women-focused banking units.

Through this effort, empowerment of rural women and CMSMEs in Bangladesh who still face significant challenges with limited financial opportunities is strengthening by educating and building their entrepreneurial capabilities. Involving usage of digital banking solutions to access formal banking supports with the help of women-led agent banking provides further support to women entrepreneurs. Moreover, the introduction of first ever SME digital lending solution in the country is specifically designed to cater to the segment called CMSMEs who need instant micro loans. On this momentum, financial Inclusion and literacy of these people are being propagated as well as breaking down the barrier to their financial independence.

The digital transformation achieved in this journey with the customers is transforming the country’s overall economic landscape through increased digital participation of women in financial sector and towards the accelerated effort of holistic digital economy. The project aiming to introduce the transformation of women inclusion and increased participation took many resources to build forward. As a result, a multi-functional team comprising of the Agent banking department, Retail Women Business Wing, Business Transformation and product department, Women entrepreneur cell and SME Strategy, Innovation and New Business is working together in achieving the objectives.

This initiative for transformation of the banking sector is focusing and steadily achieving the primary objective of decreasing the gender gap in financial services, increasing women participation in formal banking and women empowerment. This woman focused business model is a unique step on the path to achieve on the inherent values of inclusive transformation of financial services and society of both BRAC Bank and the Gates Foundation.

Initiative and Outcomes of the project : Creating women friendly banking environment by establishing women led agent points  100 number of new agent banking outlet led by women SMEs  100 WSMEs will get access to market as banking service provider  Number of new women customers through existing and new agent outlets and EKYC channel (60,000 new women customers)

Developing women centric products aiming to bring rural women under financial inclusion umbrella  2000+ WSME enrollment in ERP system  100+ WSMEs will be financed based on ERP data and other consideration after 1 year of ERP enrollment  Number of WSME financed through the new product in 3 years’ time will be 1,500  Cater more women customers (5000 accountholders) with the deposit product

Digital banking services for women and marginal community  Number of loans to be disbursed to 50,000 CMSEs and 20% of them are expected to be WSMEs and individual women customers through digital lending platform.  50,000 new customers will be on boarded in 3 years and female base in digital banking to grow 2.6x

Capacity building to become an entrepreneur  1000+ agent training in multiple phases  15,000 new Astha user creation through agent outlets after the training  600 WSMEs capacity development through training covering 20 districts of Bangladesh