Brac Bank Limited has signed a tripartite agreement with courier service platform Delivery Tiger, and finance and credit scoring platform Dana Fintech to launch platform-based e-loans for SME businesses in Bangladesh.
This partnership will enable "Platform Based SME Lending" facilities to the cottage, micro, small and medium enterprises (CMSMEs), which will use Delivery Tiger to deliver their products all over Bangladesh, reads a press release issued on Monday.
Brac Bank will provide short-term working capital financing to the registered CMSMEs of Delivery Tiger.
Meanwhile, Dana Fintech will facilitate technological support for digital customer onboarding and designing Brac Bank's credit scorecard.
Brac Bank MD and CEO Selim R F Hussain, Delivery Tiger Founder and CEO Fahim Mashroor, and CEO and Co-founder Dana Fintech Gazi Yar Mohammed signed the agreement at the bank's head office on 25 May.
Brac Bank's Deputy Managing Director and Head of SME Banking Syed Abdul Momen and other senior officials took part in the signing ceremony.
This initiative aims to provide quick and easy financing to small businesses with customers all over the country.
These enterprises will act as an alternative of brick and mortar distribution networks.
Delivery Tiger and Dana Fintech will allow SMEs to apply for financing within their merchant portal and/or mobile application.
Commenting on the agreement, Selim R F Hussain said, "Brac Bank is significantly focusing on new technology to meet financing needs of the CMSMEs.
"The technology drives business transformation and ensures faster delivery of banking services, enhancing a better customer experience. This partnership shows our commitment to ensuring easy and quick access to finance for the small-scale businesses."