Empowering Small Businesses in Bangladesh Through Digital Innovative Solutions

Four individuals engage in a panel discussion on a well-lit stage. A projector screen displays information about the ‘Empowering MSMEs in Bangladesh Pilot Project.’
A panel discussion by the regulatory body, financial institutions, a2i, and SME Foundation

Empowering Small Businesses in Bangladesh Through Innovation: Digital Sandbox

In Bangladesh, where cottage, micro, small, and medium enterprises (CMSMEs) form a significant part of the economy, accessing finance remains a substantial challenge. Recognizing this gap, the United Nations Department of Economic and Social Affairs (UN DESA) initiated a groundbreaking project titled "Frontier Technology Policy Experimentation and Digital Sandboxes for Sustainable Development." This initiative, supported through the UN Development Account, aimed to empower these businesses by facilitating access to finance through innovative digital solutions and regulatory sandboxes.

 

Bridging the Financing Gap
The project introduced the Smart Business Profile Platform (SBPP), a revolutionary digital bridge connecting CMSMEs with financial institutions. By simplifying and streamlining the process of loan applications and disbursements, the SBPP seeks to address the $3.1 billion financing gap affecting CMSMEs in Bangladesh. This initiative not only aids in financial inclusion but also fosters economic growth and supports sustainable development goals, including decent work and economic growth (SDG 8), industry innovation, and building resilient infrastructure (SDG 9).
 

A Collaborative Effort for Sustainable Development
The project stands out for its collaborative and practical approach, bringing together government officials, financial institutions, fintech startups, and regulatory bodies. This collective effort underscores the importance of technology, regulation, and consumer needs intersecting to foster innovation and drive meaningful progress. 

 

 

During the session about access to finance. Several people are seated in multiple tables and chairs.
FGD - Access to Finance in Session


Looking Ahead
As the project moves forward, it is set to catalyze further demand for participation in the Digital Sandbox and innovation within the financial sector, encouraging a culture of collaboration and continuous improvement. The main outcomes and lessons learned will be shared at a global workshop, with a pilot program to process loans through the SBPP slated for the coming year.

This initiative exemplifies how digital innovation can be leveraged to address critical financial challenges, paving the way for a more inclusive and prosperous future for small businesses in Bangladesh.
 

All the details on the project are available on the UN DESA website.

 

 

A group of professionals are engaged in a discussion during the Singapore Study Tour, seated around an oval-shaped table in a meeting room at Citibank Singapore Limited.
Singapore Study Tour - Stakeholders in Conversation with Citibank Singapore Limited  

 

 

“We always want to foster a business-friendly environment and cater to the needs of CMSMEs. Digital Sandboxes have emerged as another frontier to advance that goal of ours. We applaud the fact that public and private entities are working together to find a solution that will benefit the national economy as a whole.” 

–  Mohammad Ashiqur Rahman, Director of SME and Special Program Department, Bangladesh Bank