Dhaka Bank will soon be able to disburse small-scale personal loans within two hours of the request being submitted by clients.
As such, an account holder of the private lender will be able to contract between Tk 10,000 and Tk 3 lakh without producing any paper documents.
Dhaka Bank yesterday signed an agreement with CASHe Alliance Ltd to manage technological support for the deployment of the new product.
Emranul Huq, chief executive of the bank, said the lender will start disbursing loans in this way from next month on a pilot basis.
The pilot program will run until May, after which all bank customers will be able to take advantage of the service.
Payroll accounts kept with the bank will initially be eligible for loans, Huq said.
About 60,000 payroll accounts are now maintained with the bank.
Under the payroll account system, clients receive wages from their employers directly through a bank.
Customers will not be required to provide collateral to secure the loans.
Instead, Dhaka Bank will examine the credit status of loan applicants by checking their report from the central bank’s credit bureau.
The lender will disburse the loan using artificial intelligence (AI) technology, which will verify customer behavior through their social media accounts.
In addition, the AI will analyze the types of smartphones and applications used by customers.
This will help the lender to know the attitude and suitability of his clients.
“We will be able to identify the right clients to make loans efficiently throughout the process,” Huq said.
The loan sanction and disbursement process will be completed within two hours, he added.
A dedicated mobile application has already been prepared and credit applicants will have to download it with their smartphone.
The new initiative will help clients reduce the time it takes to manage their funds, as people currently have to wait at least five to seven days to get a personal loan.
In addition, customers will no longer need to visit bank branches to manage small loans.
However, customers must submit national ID information and upload their photo with the app, Huq said.