Swosti Mobile Credit Card wins South Asia award
FE Report | Thursday, 7 August 2014
Winners of mBillionth Awards South Asia 2014 for promoting innovations in the field of information and communication technology for development were announced in New Delhi recently.
The awards, which recognize innovations in mobile applications and service delivery, were spread over 10 categories-agriculture and ecology, business and commerce and banking, culture and heritage, education and learning, entertainment, governance, health, inclusion, travel and tourism, and women and children. There were 24 winners and 11 runners-up this year, apart from six special mentions and two chairman's winners.
Swosti Mobile Credit Card of Bangladesh won in m-business and commerce/banking provider category.
The Swosti Mobile Credit Card is a mobile phone-based virtual credit card to withdraw emergency cash, targeting those with low incomes or no fixed incomes in Bangladesh. It was launched last year for members of micro-finance institutions (MFIs) as an automated, instant credit and savings management system. The system is based on three pillars: Swosti provides the platform, non-governmental organization Dushtha Shasthya Kendra (DSK) makes the loan and Dutch Bangla Bank provides mobile banking services. It can be accessed by registered users through an Android mobile app. Cash withdrawals and repayments happen at DSK and Dutch Bangla Bank branches. The app also provides auto-alerts to members to ensure timely repayment of loan. The mobile application uses the mobile network to update transaction records. It leverages MFIs' user base to provide emergency credit over a mobile network, on the mobile banking platform.
"We wanted to provide comfort to the unbanked low-income people in case of emergency credit. They used to go to the nearest money lender to take money at a very high rate of interest. We are a replacement for that system," explains Ahmed Islam Muqsit, chief executive officer (CEO), Swosti Ltd. The company currently serves 1,000 members in Bangladesh and has disbursed Tk 10 million so far.