In a significant move to enhance financial inclusion efforts, Bangladesh’s Finance Minister, AHM Mustafa Kamal, announced the establishment of a digital bank within the upcoming fiscal year.

This announcement was made during the presentation of the proposed national budget for FY23-24 at the Jatiya Sangsad in the capital city.

Kamal informed that a committee formed by the Bangladesh Bank had been diligently working to devise strategies to broaden and accelerate financial inclusion.

The committee has successfully formulated the blueprint for establishing the digital bank. Kamal expressed optimism about launching the digital bank in the fiscal year 2023-24.

The Finance Minister also highlighted the government’s ongoing efforts to develop a credit rating system based on machine learning and artificial intelligence (AI).

This advanced system aims to simplify the identification of fraudulent and anonymous borrowers while streamlining the loan acquisition process for genuine borrowers.

Kamal emphasized the potential benefits of these initiatives, stating, “With the implementation of these technologies, it will become considerably easier to identify fake and anonymous borrowers, while genuine borrowers will experience a simpler process in obtaining loans.”

The introduction of a digital bank and the utilization of AI in the credit rating system represent significant steps toward modernizing the financial sector in Bangladesh.

These measures are expected to expand financial access and promote transparency, ultimately fostering economic growth and inclusivity in the country.