UK-based fintech firm Agam International is partnering with banks and non-banking financial institutions in Bangladesh to revolutionize traditional lending through AI and ML integration. The company, having secured agreements with four major Bangladeshi banks, aims to shift lending focus from collateral-based to character-based, fostering a more customer-centric banking paradigm.
As reported, CEO Shabnam Nida Wazed, addressing a virtual meeting from the UK, underscored Agam’s transformative mission. She disclosed ongoing discussions with eight more banks, highlighting the enthusiastic interest from major conglomerates and industries in Bangladesh to collaborate with the fintech company. Wazed emphasized Agam’s role as a facilitator, offering assistance to lending agencies and financial institutions in informed decision-making through advanced predictive analytics.
Agam International’s innovative approach involves the development of a proprietary credit scoring engine powered by AI, featuring a sophisticated Long-Acting Reversible Contraception (LARC) algorithm. This algorithm takes into account various factors, including the potential for defaults, delinquencies, customers’ ability and willingness to pay, and eligibility for other financial products.
Reportedly, Wazed highlighted that Agam’s AI and ML models analyze a diverse set of data, including demographic information, geolocation, behavioral responses, transaction records, psychometrics, KYC documents, financial literacy, and resource access. Importantly, she clarified that Agam respects individual privacy rights and does not directly collect personal information. Instead, partner banks collect and share necessary data with Agam for analysis.
The CEO of Agam International highlighted the firm’s dedication to improving traditional banking methods, transforming lending into a dynamic process tailored to the unique requirements of each financial institution. Agam’s adaptable credit scoring system enables client institutions to modify algorithms according to their risk tolerance and target customer segments. Illustrating their initiatives, Wazed cited a recent agreement with a private bank, introducing an innovative “Earned Wage Access” program that allows for early salary access.
Agam International has already invested approximately Tk 70 million within a year, signaling a commitment to significantly increase its contributions to reshape the lending landscape in Bangladesh. The firm’s AI-driven solutions aim to bring about a fundamental shift in how lending decisions are made, fostering a more inclusive and efficient financial ecosystem.
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