← State of Embedded Finance 2026

Brac

Can BRAC Bank become Bangladesh's dominant digital-first SME lender by embedding instant credit into the workflows of marginal small businesses that traditional banking has historically excluded?

Founded2001
HQDhaka, Bangladesh
IndustryBank / Community
The story

BRAC Bank was founded in 2001 as a commercial bank in Bangladesh with a core mission of SME financing and financial inclusion. Over two decades it built a broad retail and SME banking franchise, before pivoting toward digital delivery in the mid-2020s. The launch of Shafollo e-loan in 2025 — Bangladesh's first instant paperless SME loan — marked the bank's clearest embedded-finance move, embedding credit directly into mobile-accessible workflows for small traders and grassroots entrepreneurs. The bank is now expanding its digital lending footprint through outreach events, signaling an active push to capture the underserved SME segment with technology-led products rather than branch infrastructure.

Last 12 months
2025-01
2026-05
Product timeline
2001
BRAC Bank Limited founded as a commercial bank in Bangladesh with a focus on SME financing.· banking
2024
Partnered with FSS to drive digital commerce growth in Bangladesh.· payments
2025
Launched Shafollo e-loan, Bangladesh's first instant digital financing product for marginal SMEs, offering up to BDT 50,000 within minutes.· lending
2026
Expanded Shafollo SME e-loan through entrepreneur conferences across six cities to promote digital lending and financial inclusion.· lending
Regulated entities
Commercial Bank License
Bangladesh (Bangladesh Bank) · 2001
BRAC Bank Limited
The stack
Payments / PSP
FSS (Financial Software & Systems)
Lending
Shafollo e-loan (instant digital SME financing, up to BDT 50,000)SME working capital loansGrassroots borrower loans
Accounting gap: none