Five 'I's that prompt multilateral entities to choose BRAC Bank as their dev partner

BRAC Bank is widely recognised as a preferred development partner by multilateral organisations for its capability to deliver inclusive financial solutions that create meaningful and measurable impacts.

From securing strategic financing to implementing development-driven innovations, BRAC Bank has consistently demonstrated its ability to turn financial inclusion into transformative changes.

BRAC Bank is a founding member of the Global Alliance for Banking on Values (GABV). The bank has received several accolades from the IFC and SME Finance Forum for its leadership in inclusive banking, not just in Bangladesh but as a model across emerging markets.

Since its inception in 2001, BRAC Bank has focused on serving the "missing middle" -- the cottage, micro, small, and medium enterprises (CMSMEs) that traditional banks often overlook. With an inclusive, impact-driven, and innovation-led model, BRAC Bank has become a transformative force in Bangladesh's financial ecosystem.

The bank's accomplishments are profoundly anchored in the 'Five Is Principle': Inclusion, Innovation, Incubation, Implementation, and Impact. These principles form the core of the bank's objectives and strategy, derived from its foundational values: Integrity, Inclusiveness, Innovation, Customer Centricity, and Effectiveness (3ICE). This makes it highly attractive to international development organisations.

With 'Inclusion' as its anchor, BRAC Bank has brought over 1.6 million SME customers into the formal banking system, enabling entrepreneurs to access credit, build businesses, and drive economic growth. Its women SME (WSME) portfolio alone accounts for nearly 25 per cent of all WSME loans disbursed by private commercial banks in Bangladesh.

'Innovation' is embedded in the bank's business model. In 2011, BRAC Bank launched bKash Limited, Bangladesh's leading mobile financial service provider and the country's first unicorn startup, to bridge financial access gaps. In 2017, the bank introduced TARA, the nation's first dedicated women-focused banking segment. In 2023, it rolled out Borenno, Bangladesh's first premium SME banking service. The bank's digital platform, Astha, now facilitates more than BDT 170 billion monthly transactions for over 850,000 users. Behind the scenes, initiatives like CORPnet -- an enterprise transaction platform and tailored loan products such as Shafollo, Jibika, and Shubidha are transforming access to credit for CMSMEs through smart digital channels.

'Incubation' and testing are fundamental to the bank's innovation engine. Before broader deployment, new CMSME products like Shafollo and Jibika are tested, monitored, and refined through pilot programmes. This strategic approach ensures scalability without compromising customer experience or efficiency.

'Implementation' at BRAC Bank is grounded in real-time market data, customer feedback, and digital integration. Rather than a top-down approach, it is driven by field realities and front-end needs. Digital microloans like Shafollo and Jibika have been undergoing small-scale testing since their inception in 2023. This method results in faster adoption, lower attrition, and sustainable impacts.

The true measure of BRAC Bank's success is its 'impact,' evident in the growing statistics. In 2024, the bank's SME lending increased by 18%, while SME deposits surged by 48 per cent compared to the previous year. Additionally, the corporate channel saw a 29 per cent growth in its loan and deposit portfolio.

The bank's credibility has attracted partnerships with global leaders in development finance, including the Gates Foundation, DEG-KfW, Water.org, UNCDF, IFC, ADB, Swisscontact, Winrock International, and Heifer International. BRAC Bank has also significantly expanded its branch and sub-branch network nationwide to accelerate the country's economic growth.

Looking ahead, BRAC Bank is establishing an 'SME Innovation Lab' to address the market challenges faced by CMSMEs. The lab will focus on four areas: improving credit delivery for CMSMEs, closing the gender gap in finance, simplifying the agricultural supply and value chain, and enhancing climate-resilient financing.

With a nationwide presence and a digital-first mindset, BRAC Bank is well-positioned to lead the next wave of inclusive finance in Bangladesh and beyond. It continues to embody the vision of its founder, Sir Fazle Hasan Abed, who often said, "Small is beautiful, but big is impactful."

The writer is the Head of SME Strategy, Innovation & New Business, BRAC Bank