Category : Best Innovation – Finance (Innovation in Banks)
HONORABLE MENTION
Innovation Title : Prime Agrim
Organization : Prime Bank Ltd.
Background
Prime Agrim is an AI driven innovative instant & digital nano loan service provider that supports the lives of the working class, particularly blue-collar workers, using an alternative credit scoring technology. Features of Prime Agrim:
■ Instant access to finance up to BDT 10,000 for blue-collar workers.
■ Payable on next salary day.
■ Alternative way of analyzing credit worthiness
■ Promote financial literacy.
■ No financial transaction history required.
■ Simple, easy and fully digital loan.
Objectives
Prime Agrim focuses to create the leading digital nano financing service platform in Bangladesh powered by AGAM’s
digital platform, primarily focusing on the employed low-income community. Prime reasons behind launching of Prime Agrim:
■ To assist those who have no access to finance through formal channels.
■ For those who mostly rely on informal lenders with high interest rates which leads to perpetual poverty.
■ Existing Micro Finance Institutions (MFIs) are also providing loans at very high interest rates (24% to 30%) with complex terms and conditions.
The Idea
Backed by Prime Bank’s beneficiary friendly and market leading digital loan products, Prime Agrim uses advanced
Artificial Intelligence (AI) and Machine Learning (ML) algorithms to determine Alternative Credit Scoring of the
potential beneficiaries for their credit eligibility. Beneficiaries can apply for credit using their smartphones on the go and buy answering some psychometric questions and judging their existing financial profile. Their creditworthiness is assessed digitally and the credit is disbursed to their synced bank account without any hassle.
Execution
■ Prime Agrim‘s first concern during the app development was to make a digital platform for such a unique segment of
population who are not used to technologically advanced platforms. Hence, making the UI/UX completely Bangla and
as simple and easy to operate as possible.
■ Another major step in the execution was to successfully develop an alternative credit scoring method to offer loans
without any transaction history checking.
■ Furthermore, from the get go Prime Agrim wanted to develop a mechanism that bypasses lengthy documentation
processes to digitize the entire lending process.
Value Addition
Onboarding an entirely new segment of customers’ under PBL’s banking umbrella those who were deprived previously.
Despite the fact that a major portion of our economy is being built on the hard work of our RMG workers, previously no
financial institute came forward with any products designed specifically for them. Tutorials about financial literacy have been included in the app; hence the app will also promote financial literacy among this lesser solvent segment of the population.
Result and Impact
Total Loan Disbursed: 1,000+
Average Ticket Size: BDT 2,736
Total Disbursed Amount: BDT 2.7 million+
Successful Repayment: 99.01%