HSBC teams up with Brac

The Hongkong and Shanghai Banking Corporation Ltd (HSBC) in Bangladesh has signed a transformative partnership agreement with Brac, trailblazers in the microfinance industry, marking a significant step towards digitising the latter's collection and disbursement processes.

Gerard Haughey, country head of wholesale banking at HSBC Bangladesh, and Arinjoy Dhar, senior director of microfinance at Brac, inked the deal at BRAC Centre in Dhaka recently, said a press release.

This collaboration signifies a powerful synergy between Brac and HSBC, poised to reshape the microfinance landscape in Bangladesh and foster greater financial accessibility and efficiency for borrowers and the sector at large.

"This solution will benefit our clients with a seamless transaction experience and will enable them to spend more time in income generating activities. The successful implementation of this project will mark a significant milestone in our efforts to empower communities to access financial services through digital solutions," said Dhar.

"This solution will assist Brac to achieve their short-term and long-term goals more efficiently and facilitate their digitalisation journey. Similarly, this HSBC proposition will pave the way for digitalisation for the microfinance industry of Bangladesh," said Haughey.

Leveraging HSBC's cutting-edge solutions, Brac aims to streamline the retrieval of loan payments on a substantial scale.

Through direct fund pull instructions via HSBC's corporate online solution, individual requests for repayments are eliminated.

Simultaneously, Brac can efficiently disburse loans in bulk to borrowers through HSBC's online and host-to-host connectivity solutions.