Cardiff fintech Agam, which provides an AI-based credit scoring service to people without a credit history or those looking to secure small loans, including for SMEs, has launched the first digital Sharia-based microfinance product in Bangladesh.
The startup has entered into a first-of-a-kind partnership with Bangladesh’s inaugural digital-only microfinance provider, SBK Foundation, to give entrepreneurs and gig economy workers access to loans.
The partnership will provide financial access to unbanked and underserved communities, such as garment workers, SMEs and entrepreneurs, who may not have the collateral or credit history for traditional loans. This will allow them to access credit to purchase essential groceries and access medical support.
Read more: Swansea Building Society CEO on community bank for Wales fears
Agam founder and chief executive 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 is the latest development in Agam’s partnership with SBK Foundation. In September 2022, the companies launched 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.
Founded in 2019, Agam, which means ‘advance’ in Bangla, currently employs 20 in the UK and Bangladesh. The company relocated to Cardiff last Autumn on the back of its third equity investment round as it looks to expand into other growth markets. Investors included the Development Bank of Wales.
Sonia Bashir Kabir, founder and vice chair of SBK Foundation, said: “We are thrilled to be partnering with AGAM International with whom SBK Foundation shares a common vision to empower marginalised 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.”
Read more:
