Dhaka Bank to launch AI-based instant loans

Dhaka Bank will soon be able to disburse small-scale personal loans within two hours after clients submit their application.

As such, an account holder of the private lender will be able to take between Tk 10,000 and Tk 3 lakh in loans without producing any paper documents.

Dhaka Bank yesterday signed an agreement with CASHe Alliance Ltd in order to manage technological support to roll out the new product.

Emranul Huq, managing director of the bank, said the lender would start disbursing loans in this manner from next month on a pilot basis.

The pilot programme will run until May, after which all clients of the bank can enjoy the service.

Payroll accounts maintained with the bank will be initially eligible for the loans, Huq said.

Around 60,000 payroll accounts are now maintained with the bank.

Under the payroll account system, clients receive salaries from their employers directly through a bank.

Clients will not be required to provide any collateral to secure the loans.

Instead, Dhaka Bank will scrutinise the credit status of loan seekers by verifying their credit information bureau report of the central bank.

The lender will disburse the loan by using artificial intelligence (AI) technology, which will verify the clients' behaviour through their accounts on social media.

In addition, the AI will analyse what types of smartphones and apps are being used by clients.

This will help the lender know the attitude and aptitude of its clients.

"We will be able to detect the proper clients to give out loans in an efficient manner through the process," Huq said.

The process of loan sanction and disbursement will be completed within two hours, he added.

A dedicated mobile application has already been prepared and loan seekers will have to download it with their smartphone.

The new initiative will help clients reduce the time needed to manage funds as people currently have to wait at least five to seven days to get a personal loan.

In addition, clients will no longer need to visit bank branches to manage small loans.

However, clients have to submit national identification related information and upload their picture with the app, Huq said.