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Call to introduce alternative credit rating for MFIs

FE Report | February 17, 2019 00:00:00


Speakers at a programme on Saturday stressed the need for proactive action from the regulator for vibrant, secure and effective financial inclusion.

They said security of data collected for financial inclusion should be as important as protection of data.

The speakers said security of online or mobile financial services always should be the first priority of regulator.

The views came at a session of the daylong summit titled the Financial Inclusion Summit held at a city hotel.

University of Liberal Arts Bangladesh and bKash jointly organised the summit.

Speaking as a panelist, Chief Executive Officer (CEO) of Bangladesh International Arbitration Centre (BIAC) Muhammad A (Rumee) Ali said bKash has done a great deal in developing trust both in customers and the regulator.

He said that people were not comfortable with financial transactions through mobile phone, he said adding that bKash made it possible.

"They also earned trust from the regulator and made the central bank believe it is possible," he said.

Chief External and Corporate Affairs Officer of bKash Monir said when it comes to compliance, Bangladesh Financial Intelligence Unit (BFIU) and the payment services department have to be certain about the existing practices across the world.

He said data with bKash is secured and every customer's data is authenticated with the national database.

He said bKash is much careful about money laundering and terror financing. bKash employees are also aware about the transactions, he added.

Country Project Coordinator of SHIFT (SAARC) at UNCDF Ashraful Alam said microcredit organisations are doing well, but their performance is not evaluated because of not having credit rating system for them.

He underlined the need for alternative credit rating system for microfinance institutions (MFIs).

He also said the central bank should look into what type of data financial institutions collect and how do they use those data.

Grameenphone Founder Chairperson Khalid Shams also spoke at the session.

Director of CES at ULAB Sajid Amit moderated the programme while ULAB Vice Chancellor Dr HM Jahirul Haque gave vote of thanks.

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