BRAC Bank launches SME innovation lab

BRAC Bank PLC has launched the country's first SME innovation lab, titled "Finnovision", aimed at helping small businesses grow and thrive through the adoption of innovative solutions.

The initiative reinforces the bank's pioneering role in strengthening cottage, micro, small and medium enterprises (CMSMEs) through innovation, inclusion and sustainability.

Husne Ara Shikha, executive director of Bangladesh Bank, inaugurated the SME innovation lab as the chief guest at a ceremony held at Lakeshore Hotel Gulshan, in Dhaka on Sunday, according to a press release.

Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank, and Syed Abdul Momen, additional managing director and head of SME Banking, along with development partners and industry stakeholders, were also present.

Finnovision is a dedicated platform designed to test, refine and scale solutions that address contemporary economic, social and environmental challenges faced by CMSMEs.

Harnessing the untapped potential of grassroots entrepreneurs, the lab focuses on four strategic priorities: closing the gender financing gap, fostering smart and sustainable agriculture, accelerating climate-resilient financing, and integrating cottage and microenterprises into the mainstream economy.

The lab follows a structured, impact-oriented approach, beginning with a comprehensive assessment of CMSME challenges, followed by the launch of problem statements and the shortlisting of enterprises for support.

Selected businesses then enter a bootcamp phase, receiving hands-on training to formalise operations, strengthen bookkeeping, develop realistic cash-flow projections and craft growth strategies.

Promising enterprises progress to a technical assistance phase, where tailored mentorship helps refine prototypes, address implementation challenges and prepare solutions for scale-up.

Leveraging the lab's ecosystem, participants gain access to financial product innovation, channels, markets and financing, while piloting and validating scalable solutions.

The initiative underscores BRAC Bank's long-standing commitment to SMEs and aligns with the founding vision of Sir Fazle Hasan Abed, who established the bank to serve the country's "missing middle" through inclusive banking.

Through collaboration with local and international partners, including DEG Impulse gGmbh, Finnovision aims to unlock new financing models and innovative propositions for grassroots entrepreneurs.