AGAM Takes Digital Credit Drive to 4.2m Garment Workers

Millions of Bangladesh’s garment workers struggling to meet emergency expenses could gain faster access to cash through digital wage advances and small loans as UK-based fintech innovator AGAM International expands its partnerships with commercial banks and apparel manufacturers.

The initiative seeks to close a critical gap in financial inclusion: although workers increasingly receive salaries digitally, many still lack affordable ways to cover unexpected medical bills, transport costs and household emergencies without resorting to informal borrowing.

“We are facilitating loans on an emergency basis to employees of our partner companies to bring financial services closer to workers. The initiative connects payroll arrangements with access to wages already earned,” Rosey Hurst, a director on AGAM International’s board, told The Daily Observer in an exclusive interview.

“Bangladesh’s garment workers can gain wider access to their earned wages and small digital loans from AGAM. We are partnered with banks and garment factories to support employees and workers. Our partnerships and credit expansion are growing day by day,” she said.

AGAM’s technology-driven model combines earned wage access (EWA), digital nano-lending and technology-supported credit assessment. EWA allows eligible employees to withdraw a portion of wages they have already earned before payday, subject to the service’s terms, while digital nano-loans provide a separate source of emergency credit.

The distinction is crucial for workers living on tight budgets. Access to earned wages can help bridge short-term cash-flow gaps without creating a new loan, whereas borrowing creates repayment obligations that must be affordable and transparent.

“Financial inclusion must go beyond transferring wages digitally. It should help workers manage their income, deal with unexpected expenses and access suitable financial services without unnecessary costs,” Hurst said.

“Technology can support this goal, but its value depends on whether services improve workers’ financial choices rather than simply increasing transactions or expanding a company’s customer base.”

AGAM is building its operations through partnerships with banks and garment manufacturers. Its relationship with Prime Bank, established in early 2021, supports Prime Agrim, a service Hurst said is already operational. The company has also signed a memorandum of understanding with BRAC Bank and is pursuing additional partnerships with financial institutions.

In February 2026, Trust Bank and AGAM International (BD) Limited signed an MoU to introduce a fully digital nano-loan service. The proposed platform includes online customer onboarding, digital know-your-customer procedures, artificial intelligence-based credit scoring, loan management and payroll integration. Lending volumes and measurable customer outcomes under the proposed service have yet to be established.

AGAM is also integrating its services into garment-sector payroll arrangements. In May 2026, it announced an agreement with Fashion Asia Ltd, a sister concern of Northern Tosrifa Group, to introduce earned wage access for eligible employees through a digital platform.

The company also identifies ACME Group, SQ Group and KG Garments among the factories with which it operates. The reach of these initiatives will depend on implementation, employee participation and the services available at each factory.

With around 4.2 million employees, most of them women, Bangladesh’s ready-made garment industry offers significant potential for digital financial services. Yet wider access alone will not guarantee better financial security. High fees, unsuitable repayment schedules and repeated borrowing could deepen the pressures these services are intended to ease.

Hurst brings experience in workers’ rights, ethical supply chains and responsible business to AGAM’s financial inclusion ambitions. She founded Impactt, an organisation focused on improving labour conditions and business practices, and has advocated approaches that benefit workers and employers alike.

She said clear, consistently applied regulatory requirements were essential to building a competitive and responsible fintech market.

“Clear regulatory requirements can define the responsibilities of technology providers, employers and financial institutions, giving compliant businesses greater certainty to invest and expand,” she said.

Compliance with Bangladesh Bank’s applicable rules and supervisory requirements remains essential, particularly in customer authentication, data protection, risk management, affordability assessments and regulatory reporting. 

Technology may streamline onboarding and help assess applicants with limited conventional credit histories, but participating banks must retain responsibility for their lending decisions and regulatory compliance.

Hurst stressed that earned wage access must not weaken employers’ obligations to pay full wages on time and without unlawful deductions. Accessing earnings early may ease temporary cash shortages, but it cannot resolve delayed salaries, unpaid wages or inadequate income.

Digital nano-lending also carries risks. Small loans can help households manage emergencies, but poorly designed products may expose borrowers to excessive charges, repeated borrowing and repayment pressure.

“Workers must understand the total borrowing cost, repayment schedule, applicable charges and consequences of missed payments. Responsible credit assessment is essential to ensure that easier access to loans does not create greater financial hardship,” she said.

Transparent fees, clear withdrawal limits and an understanding of how much money will remain available on payday will be vital to building workers’ trust. Employers need reliable payroll arrangements, while banks must ensure their products match customers’ financial circumstances and repayment capacity.

AGAM’s next challenge is to demonstrate that its expanding banking and factory partnerships produce measurable improvements in workers’ financial lives. Registration and transaction volumes alone cannot establish whether employees are managing emergencies more effectively or reducing their dependence on expensive borrowing.