BRAC Bank partners with DEG Impulse to launch SME innovation lab

BRAC Bank has signed a strategic partnership agreement with Germany-based DEG Impulse to establish an SME Innovation Lab in Bangladesh's banking sector, with a particular focus on women-led enterprises.

The initiative will be implemented with the support of DEG Impulse gGmbH, a wholly owned subsidiary of the German development finance institution DEG, under the framework of the developPPP programme.

According to a press release, the SME Innovation Lab aims to narrow the gender gap in financial access and enhance credit delivery, thereby fostering a more inclusive and resilient business ecosystem in the country.

DEG Impulse is committed to supporting the social and environmental transformation of the private sector in developing and emerging markets.

The organisation contributes to international development policy objectives aligned with the United Nations Sustainable Development Goals (SDGs), and implements the developPPP programme on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

Commenting on the initiative, Syed Abdul Momen, additional managing director and head of SME banking at the bank, stated, "As an SME-focused institution, BRAC Bank is constantly exploring innovative ways to nurture and support entrepreneurs at the grassroots level."

"The establishment of the SME Innovation Lab will enable us to generate new ideas, design tailored financial products, and develop customised financing solutions that empower SMEs to thrive," he added.

The lab is designed to develop sustainable, scalable solutions that can be replicated across sectors. Dedicated exclusively to fostering innovation within the cottage, micro, small, and medium enterprise (CMSME) segment, the incubator will address critical challenges faced by these businesses particularly those led by women and other vulnerable groups.