BRAC Bank, DEG partners to launch Bangladesh’s first SME Innovation Lab
BRAC Bank is set to establish Bangladesh's first-ever SME Innovation Lab in collaboration with DEG Impulse, a subsidiary of Germany's development finance institution DEG.
The lab, the first of its kind in the country's banking sector, will be developed under the framework of the develoPPP programme, which is implemented by DEG Impulse on behalf of Germany's Federal Ministry for Economic Cooperation and Development (BMZ). DEG Impulse focuses on supporting the social and ecological transformation of the private sector in developing and emerging economies, aligned with the United Nations' Sustainable Development Goals (SDGs).
Dedicated to fostering innovation in the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector, the SME Innovation Lab will serve as an incubator for sustainable solutions addressing key challenges faced by small businesses in Bangladesh. It will prioritise women-led enterprises and vulnerable business segments, aiming to promote inclusive growth and resilience.
Keep updated, follow The Business Standard's Google news channel
The initiative will develop scalable models for bridging the gender gap in access to finance, promoting inclusion of cottage and micro enterprises, encouraging smart agriculture, advancing climate-resilient financing models.
In its first phase, BRAC Bank and DEG Impulse have signed an agreement to launch a dedicated vertical focusing on women-led enterprises. The goal is to close gender-based gaps in financial accessibility and enhance credit delivery, thereby contributing to a more equitable and vibrant business ecosystem.
Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank, said:
"As an SME-focused bank, BRAC Bank consistently explores innovative ways to nurture entrepreneurs at the grassroots. The SME Innovation Lab will help us generate new ideas and develop tailor-made financing solutions to support the growth of small businesses. We are grateful to our German partner DEG Impulse for bringing this transformative initiative to life in Bangladesh."
Once operational, the SME Innovation Lab will serve as a global hub for innovation, financial inclusion, and the economic empowerment of women in business. The initiative embodies the founding vision of Sir Fazle Hasan Abed, who believed in driving inclusive development through entrepreneurship.
