Mobile financial service provider Nagad and Dana Fintech, an embedded finance and credit scoring platform, have announced a partnership to expand digital lending to Small and medium-sized enterprises (SMEs) and financial wellness platform for underserved consumers.

Under this partnership, both organizations will enable partner lenders to extend SME digital lending facility which will potentially enhance Nagad’s payment ecosystem and Dana’s embedded lending technology.

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Rahel Ahmed, chief executive officer (CEO) of Nagad Ltd, and Gazi Yar Mohammad, co-founder and CEO of Dana Fintech, signed the agreement during a ceremony recently arranged at the Nagad headquarter in the Capital.

Regarding the agreement, Nagad CEO Rahel Ahmed said, this partnership is a milestone in making underserved SMEs and individuals credit worthy through Dana credit scoring engine based on different data insights and digital transaction footprints of Nagad users.

This will open up new opportunities for quick access to capital for SMEs and underserved customers who don’t have easy access to loans or credit cards, he added.

Through this partnership, entrepreneurs of micro and SME enterprise sectors in the country can readily obtain financial benefits from the lenders. There are several more facilities available to Nagad customers, particularly with SME Digital Loan, Buy Now Pay Letter (BNPL), and Earn Wage Proposition. In addition to increasing the payment ecosystem of Nagad Ltd, the service will also increase the integrated credit system of Dana Finance.

Shihab Uddin Chowdhury, Chief Sales Officer of Nagad Ltd, and Zia Hassan Siddique, Co-founder and COO of Dana Fintech were also present at the signing ceremony.