Home ›› 30 May 2023 ›› Corporate
Wagely, one of Asia’s fastest-growing financial wellness platform, has teamed up with Shadhin Fintech to provide Equated Monthly Installment (EMI) facility to Bangladeshi ready-made garment workers for purchasing smartphones.
The innovative partnership aims to digitally empower workers in the ready-made garment industry by offering them affordable access to smartphones, according to a press statement issued on Monday. The partnership will allow the workers to make purchases without facing financial difficulties and increasing their access to technology.
Responsible for almost 9.25 per cent of the gross domestic product (GDP) of the country, access to smartphones is still a luxury for the majority of the RMG workers, even though smartphones have become a basic necessity to sync as a smart citizen moving forward with the country and its growth, said the press statement.
It continued that RMG workers in Bangladesh have very limited access to formal and regulated financial facilities, which often makes it challenging for them to make informed financial decisions.
The limited penetration of smartphones has also been observed as being correlated with being a barrier to the literacy rate for these blue-collar workers, added the press statement.
The Equated Monthly Installment or EMI facility will be made available to the workers through wagely’s platform, powered by Shadhin's MRA Regulated Micro Finance digital lending platform.
With this facility, for the first time in Bangladesh, RMG workers will be able to purchase products such as smartphones and pay for them in 3-to-6-month period installments, without having to worry about upfront payments.
The pilot project is aimed to bring positive impacts on the lives of workers, especially those who may not have the means to make large purchases all at once.
The project aims to initially target workers in the RMG industry. But there are plans to extend the facility to more blue-collar workers across various industries in the future using wagely’s services.
The partnership between wagely and Shadhin Fintech is a significant step towards financial inclusion for over 150,000 Bangladeshi workers currently using wagely’s service.
This innovative initiative will not only provide access to affordable purchasing power but will also support the reduction of the digital divide for workers and help them to take advantage of financial, digital, and literacy services in the future.
Speaking about the initiative, Managing Director of Wagely Bangladesh Noor Elahi, said, “We are thrilled to partner with Shadhin Fintech and offer EMI facilities to our users at wagely for the first time.
“As the country is growing towards becoming Smart Bangladesh, it is essential that we include one of the most valuable segments of the population in this growth.
“This initiative aligns with our mission of improving the financial well-being of workers as well as with the vision of Smart Citizen of a Smart Bangladesh. Our partnership with Shadhin has made this possible, and we look forward to continuing to work together for more innovative solutions.”
CEO of Shadhin Fintech Kashfia Mahmud, said, “Our goal is to make financial services accessible to everyone, especially those who face barriers to accessing such services. We are excited to partner with Wagely, Bangladesh’s leading financial wellness platform to achieve this.
“By providing EMI facilities to RMG workers, we are enabling them to purchase the products they need digitally and in a few simple steps. This partnership is an excellent example of how technology can be used to promote financial inclusion and improve people’s lives.”
The RMG industry, which started its journey four decades ago, has now become the powerhouse of Bangladesh’s economy. Almost 80 per cent of Bangladesh’s total export earnings come from this sector.
There are over 4.2 million RMG workers employed in the country.
