Cardiff fintech Agam launches the first digital microfinance product in Bangladesh

Cardiff fintech Agam, which offers an AI-based credit assessment service to people with no 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 premier partnership with Bangladesh’s first digital-only microfinance provider, SBK Foundation, to provide entrepreneurs and gig economy workers with 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 give them access to credit to buy essential groceries and access medical support.

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Agam founder and CEO Shabnam Wazed, said, “Our offering of a digital Sharia microloan takes us a step further in achieving our goal of promoting financial inclusion in Bangladesh, especially among women and the gig economy group. We use AI for to transform traditional Sharia lending, making the process faster, efficient and fair.”

Sharia microcredit is the latest development in Agam’s partnership with the SBK Foundation. In September 2022, the companies launched Bangladesh’s first AI digital microfinance platform that enabled app-based entrepreneurs to access credit to buy goods to carry out their jobs.

Founded in 2019, Agam, which means ‘progress’ in Bangla, currently employs 20 in the UK and Bangladesh. The company moved 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 delighted to partner with AGAM International, with whom SBK Foundation shares a common vision of empowering marginalized communities with technology and affordable access to finance.

“Our relationship is focused on harnessing AI to revolutionize 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 medicines. We look forward to seeing the positive impact of our ongoing collaboration with AGAM International.”

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