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04 February 2023


Business Insider Bangladesh

SCB enables microfinance sector’s digital cash management solution for BRAC

BI Report || BusinessInsider

Published: 19:20, 30 November 2022   Update: 19:20, 30 November 2022
SCB enables microfinance sector’s digital cash management solution for BRAC

Photo: Courtesy

Standard Chartered Bangladesh (SCB) recently inked an agreement with BRAC to enable digital collection and payment processes for 2,800 microfinance branch offices across BRAC’s footprint.

This project is a collaborative initiative between BRAC and Standard Chartered and provides BRAC with a first-of-its-kind solution suited to their wide-ranging cash management requirements, said a press release.

The bespoke solution uses the Bangladesh Electronic Funds Transfer Network (BEFTN) and Bangladesh Real Time Gross Settlement (BD-RTGS) to digitise loan disbursement.

Additionally, Direct Debit Instruction (DDI) is utilised to fully automate the collection process. Standard Chartered’s Straight2Bank offering makes it possible for disbursement and collection to be conducted seamlessly on one platform.

Real-time debit and credit notifications, instantaneous account reconciliation, the ability to initiate all transactions from their own platform, and on-demand custom reporting provides BRAC with around-the-clock access to critical information along with improved control, speed, and visibility.

The agreement between Standard Chartered Bangladesh and BRAC was signed by Luthful Arefin Khan, Head, Transaction Banking, Standard Chartered Bangladesh and Asif Saleh, Executive Director, BRAC. Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bangladesh; Enamul Huque, Managing Director, Head of Client Coverage, Corporate, Commercial & Institutional Banking, Standard Chartered Bangladesh; Jason Ving, Regional Head, Public Sector and Development Organisation, ASEAN & South Asia, Standard Chartered; Arinjoy Dhar, Senior Director, BRAC Microfinance Bangladesh; and other senior officials were also present.

Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bangladesh, said, “Digital solutions and automation are the need of the hour – not only to drive the business agenda of our clients, but also to ensure resilient economic growth. We are proud to partner with BRAC to power and implement flexible and transparent solutions that play a significant role in revolutionising the microfinance space – a space that is bridging income inequality, reducing poverty, and propelling inclusive development.”

Arinjoy Dhar, Senior Director, BRAC Microfinance Bangladesh, said, “Digital transformation and financial inclusion are key to driving economic empowerment of our beneficiaries. BRAC Microfinance is driving digital inclusion of its beneficiaries, which will enable people to move from a cash economy to a digital economy. Today, we started a journey with Standard Chartered Bangladesh which will benefit our beneficiaries to have a seamless experience of receiving and making payments which will save time for them, and this additional time can be spent to ensure better livelihood. This will help to optimize processes, drive efficiency and lead to better work-life balance. The successful implementation of this project will be a breakthrough in the microfinance industry. We look forward to our continuing partnership with Standard Chartered Bangladesh in the coming years.”

With over 117 years of uninterrupted presence, Standard Chartered is the only multinational universal bank in Bangladesh. As the nation’s longstanding partner in progress, the Bank is facilitating major investments in power, energy, transportation, and urban development. The Bank accounts for a major share of all export and import financing, as well as power generation financing and SME lending by foreign banks. Standard Chartered offers a wide range of online facilities, utilising state-of-the-art technology to design solutions for clients both in Bangladesh and beyond.

BRAC is a leading international non-profit organisation with a mission to empower people and communities in situations of poverty, illiteracy, disease, and social injustice. Established by Sir Fazle Hasan Abed in 1972, after the independence of Bangladesh, BRAC is present in all 64 districts of Bangladesh as well as 11 other countries in Asia, Africa, and the Americas.

Nagad