IFC, a member of World Bank Group, will work with IDLC Finance Limited to promote access to banking services for small businesses by scaling up credit approval processes, and improving risk management and business development skills of IDLC’s frontline employees.
IFC’s advisory assistance will help IDLC implement an advanced credit scoring model based on credit portfolio data. This will reduce time needed to approve loans, decrease cost of loan sourcing, and ensure efficiency in operations. IFC and IDLC will also conduct a special awareness-raising campaign for women entrepreneurs.
During the two-and-a-half-year project, IDLC will disburse 10,000 loans worth $370 million to small and medium enterprises (SMEs). IFC will provide IDLC with SME-focused training on sales, credit, and client relationships. IDLC will build and run a call center, ‘SME Helpline’, which small businesses can call for information on financial services or to discuss business and service-related issues.
“Being a market leader in the Bangladesh SME financing space, we continuously strive to reach and set global best standards in financing small and medium businesses. The cumulative average growth rate of 68% of our SME portfolio over the last four years and our industry-best non-performing loan ratio is a testament to our efforts,” said Selim R.F. Hussain, Chief Executive Officer, IDLC Finance Bangladesh Limited. “IFC is the right partner to help us further extend our SME financing operations,” he added.
IFC works with financial partners in Bangladesh to help increase access to, and improve affordability of, finance for small enterprises. IFC supports product standardization, new product development, risk management, business development, and automation, while promoting environment-friendly financing.
“IFC is keen to see a robust small and medium enterprises sector in Bangladesh. This partnership will enhance the skills of IDLC professionals specializing in small enterprises, enabling easier access to finance for Bangladeshi entrepreneurs,” said Kyle F. Kelhofer, IFC Country Manager for Bangladesh, Nepal, and Bhutan.
IFC has a growing investment program in Bangladesh. IFC’s advisory services focus on improving business operating environment. IFC works with the government to design and implement programs to introduce business-friendly policies, laws and regulations, while strengthening the institutions that implement them.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges