Digitising CMSME Banking

Tareq Refat Ullah Khan 
Managing Director & CEO 
BRAC Bank PLC

Over the next five years, we aim to redefine SME banking through AI and data-driven credit assessment. By analysing entrepreneurs’ cash flows and digital transaction histories, we will be able to assess creditworthiness instantly, enabling faster, smarter, and more inclusive lending decisions.

BRAC Bank has transformed Bangladesh’s CMSME landscape by disbursing BDT 2 lakh crore to over 20 lakh entrepreneurs. Today, the bank is replacing traditional collateral with AI and data-driven credit assessments. Tareq Refat Ullah Khan, Managing Director & CEO of BRAC Bank, discusses how the bank is leveraging technology and innovation to empower the next generation of grassroots businesses.

The Daily Star (TDS): What milestones has BRAC Bank achieved in the CMSME sector so far?

Tareq Refat Ullah Khan (TRUK): Founded in 2001 to serve the small and medium entrepreneurs, who had long remained outside the reach of conventional banking. We have disbursed BDT 2 lakh crore to over 20 lakh customers, with 85% of loans requiring no collateral. Beyond financing, we empower entrepreneurs through capacity-building programs like ‘Uddokta 101’ and ‘Amrai TARA’. By leveraging digital platforms like the Astha app and our new SME Innovation Lab, we provide fast, efficient, and innovative financial solutions to grassroots businesses across the country.

TDS: Where do you see BRAC Bank’s SME business in the next five years? How confident are you about achieving that vision?

TRUK: SME banking remains BRAC Bank’s core strategy, accounting for 47% of our total loan portfolio, which has recorded close to 20% growth over the past few years. As of December 2025, our SME loan portfolio stood at BDT 34,911 crore, while our SME deposit portfolio reached BDT 18,987 crore, representing year-on-year growth of 14% and 33%, respectively. Moving forward, we aim to significantly expand this market share by leveraging our digital infrastructure and nationwide network to empower more grassroots entrepreneurs.

TDS: What are BRAC Bank’s plans for accelerating SME digitalisation?

TRUK: BRAC Bank is prioritising the digital transformation of its SME banking services. Last year, over 50,000 SMEs were onboarded digitally, and our Astha app now handles 65% of all SME transactions. We introduced BizPay for efficient business management and e-LAP to automate and speed up loan processing. To drive financial inclusion, we launched ‘Shafollo’ and ‘Jibika’, Bangladesh’s first document-less, real-time SME e-loans. We are also expanding Bangla QR payments and supply chain finance to integrate CMSMEs into the formal economy and build a future-ready sector.

TDS: What were the new products you introduced over the past year? What are BRAC Bank’s plans for product innovation over the next five years?

TRUK: Our SME banking is now simpler and more inclusive. Highlights include reaching 23,000 unbanked entrepreneurs via e-loans and launching sector-specific solutions like Torongo and Swabalombi. With the success of BizPay for digital transactions, we are now looking toward the future: using AI for instant credit decisions, expanding green finance, and scaling women-led businesses through our TARA portfolio and SME Innovation Lab.