BRAC Bank, IFPRI to build digital financing ecosystem for farmers

BRAC Bank and the International Food Policy Research Institute (IFPRI) have recently partnered to expand digital payments and access to formal credit across Bangladesh’s agricultural value chains.

The Gates Foundation is supporting the initiative, which was developed under FINNOVISION, BRAC Bank’s impact-driven SME Innovation Lab, according to a press release.

The two-year pilot, which will run until October 2028, will bring farmers and agricultural input retailers into the digital payments ecosystem. Their digital transaction histories will then help assess creditworthiness and facilitate access to formal financing for individuals and businesses that have traditionally relied on informal sources of credit. The initiative aims to reach 50,000 farmers and 1,500 agricultural input retailers.

BRAC Bank and IFPRI will jointly design and deliver payment and credit solutions through the bank’s digital platforms – Astha, Shafollo, and Jibika – as well as its Agent Banking network. IFPRI will lead rigorous impact research, including randomised evaluations, to identify the factors driving adoption and assess the approach’s effectiveness and scalability.

The evidence generated will inform policymakers and help shape the potential for wider national adoption.

BRAC Bank Additional Managing Director and Head of SME Banking Syed Abdul Momen and IFPRI Director General Johan Swinnen signed the partnership agreement.

BRAC Bank Additional Managing Director and Head of Wholesale Banking Md Shaheen Iqbal, was present. Present from IFPRI were Senior Research Fellow Kate Ambler, IFPRI Country Representative for Bangladesh Moogdho Mahzab, and Research Fellow and Project Lead Mehrab Bakhtiar.

Commenting on the initiative, Momen said: “Farmers and small agricultural businesses are vital to the economy and food security, yet many continue to face barriers to accessing formal finance. By converting everyday digital transactions into a pathway to credit, we can help make their financial activities more visible and their creditworthiness easier to assess.

“The partnership will help bridge the gap between digital payment adoption and access to appropriate financing. The collaboration will help farmers and agricultural input retailers strengthen their businesses, manage working capital and pursue growth opportunities.”

“This is a unique initiative that brings together a leading bank and world-class research to advance digital financial inclusion in Bangladesh,” said Gates Foundation Country Program Officer Snigdha Ali.

“When a farmer’s everyday digital payments can open the door to formal credit, it changes what is possible for their livelihood. We are proud to support a partnership built on evidence, with the potential to reach farmers across the country.”

“Millions of farmers in Bangladesh still sit outside the formal financial system,” said Bakhtiar.

“Through this partnership, we will study how digital financial solutions change farmers’ lives and what it takes to bring them fully into the digital financial ecosystem. Our goal is to produce evidence that turns a successful pilot into a national model for financing agriculture.”