Dhaka Bank, Swisscontact team up raise RMG workers' access to banking

Dhaka Bank Limited (DBL) has signed an MoU with the 'Sarathi- Improving Financial Health' project of Swisscontact, which is funded by the MetLife Foundation, the Happel Foundation, and Swisscontact.

The initiative aims to increase access to formal savings and loan products tailored to the needs of the low-income population, especially the RMG (ready-made garments) workers.

A baseline conducted by Sarathi in 2021 found an alarming 88% of RMG workers to have no savings, whereas 51% intend to start some form of savings. Many also do not have any reliable sources to borrow money, especially during emergencies, and are subjected to exploitation by local loan sharks charging 15-100% interest, says a press release.

The agreement was signed by A M M Moyen Uddin, Deputy Managing Director, Dhaka Bank Limited and Bipasha S. Hossain, Team Leader, Sarathi, Swisscontact. Mosleh Saad Mahmud, Executive Vice President & Head of Liability & Cash Management, DBL; Salma Akhter, Manager-Partnerships & Advocacy, Sarathi and other representatives were present during the signing ceremony.

The core objective of this partnership is to register RMG workers, with a focus on achieving gender parity, for the Nano Savings DPS and Dhaka Bank eRin products. The partnership aims to provide financial solutions catering to low-income industrial workers, especially those in the RMG sector.

Through this collaboration, DBL and Sarathi aim to increase access to savings and loans, promote responsible financial management, and contribute to the overall well-being of RMG workers and their communities.