SCB enables microfinance sector's first end-to-end digital cash management solution for Brac

Standard Chartered Bangladesh 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.

The agreement between Standard Chartered Bangladesh and Brac was signed by Luthful Arefin Khan, head of Transaction Banking, Standard Chartered Bangladesh and Asif Saleh, executive director, Brac, reads a press release.

Naser Ezaz Bijoy, chief executive officer; Enamul Huque, managing director, head of Client Coverage, Corporate, Commercial & Institutional Banking; Jason Ving, regional head, Public Sector and Development Organisation, ASEAN & South Asia from Standard Chartered Banglades; Arinjoy Dhar, senior director, Brac Microfinance Bangladesh; and other senior officials were also present.

CEO of Standard Chartered Bangladesh Naser Ezaz Bijoy 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."

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, the release adds.

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.

Senior Director of Brac Microfinance Bangladesh Arinjoy Dhar 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 optimise 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," he added.