Collaboration between banks and fintech companies is needed to accelerate digital lending for small-and-medium enterprises (SME) as it would enable them to avail funds instantly and without complexities, experts said today.
So, the government and Bangladesh Bank should introduce more policy support in this regard, they said.
AKM Fahim Mashroor, chief executive officer of Bdjobs.com and AjkerDeal, said both the government and Bangladesh Bank have been emphasising on SME lending for the past few years.
As a part of its efforts, the government introduced stimulus funds for SMEs to help the sector combat Covid-19.
"But the SME lending target wasn't achieved," he added.
Mashroor was addressing a workshop on "Enabling Regulatory Framework for Fintech Industry", organised by the Bangladesh Association of Software and Information Services (BASIS).
"There are some methodical, policy-oriented complexities that are hindering the expected growth in SME lending," he said.
Besides, banks are not very interested in SME lending due to the exorbitant cost of operations to this end.
However, fintech companies can use technology to reduce the cost.
"To help SME lending grow faster, the government should allow the firms to avail digital loans without trade licenses," Mashroor said.
"For that, digital loans are a solution for SMEs to get funds when they need it," he added.
Source: https://www.thedailystar.net/business/news/stocks-rise-second-day-2993341