Dhaka Bank will be able to disburse loans to customers within just 2 hours of applying for a loan. The listed commercial bank of the country signed an agreement with CASHe Alliance Ltd on January 10, 2022, for technological support to disburse small scale loans ranging from BDT 10,000 to BDT 3 lakh to account holders without any paperwork.
Moreover, there will be no requirement for clients to provide collateral for securing loans. According to the managing director of the bank, Emranul Huq, loans will be disbursed as part of a pilot program beginning next month. Upon completion of the pilot program in May, the service will be available to all bank customers.
According to Dhaka Bank, the loans will be initially available only to payroll accounts maintained with the bank, Huq added. More than 60,000 payroll accounts are now maintained with the bank. The payroll account system involves clients receiving salaries directly from their employers through a bank account.
The bank will verify the client’s social media account to evaluate the applicants behavior through artificial intelligence technology to disburse the loan. The AI will also analyze what types of smartphones and apps clients use. Dhaka Bank, however, will check the credit standing of loan applicants using the central bank’s credit bureau reports. Through this, this bank will be able to determine the attitude and aptitude of its clients.
This initiative of Dhaka Bank will reduce clients time to 5-7 days and the customer will no longer have to go to the branch to take such a personal loan. A dedicated mobile application has already been prepared and loan seekers can download it with their smartphone. According to Emranul Huq, clients have to submit national identification related information and upload their picture with the app.