Page 53 - IBT December 2020

almost equal to China in 2005. The emergence of active Angel Investment players such as ease of access to debt the money unless they profit, unlike of current technologies; for example, sector. the demands of a technology-driven ecosystem" to encourage startups. startups reach the growth stage. towards building that trust
final consumption expenditure, which Networks, Impact Investing, host of finance, reducing the cost of doing banks or NBFI. Investment in startups any farmer in a remote location of our How can we increase transformation. There are now a lot of Most ICT companies operating in the Subsequently, we are providing
accounts for private consumption and local and international operating business, ease of doing business, requires more risk capital; therefore, country can complete his/her financial literacy among issues to be resolved in the insurance country are relatively new and are in training and mentoring, including lab between the customer
general government consumption, has accelerators/ incubators propelled fiscal policy support - VAT/tax angel investors or venture capitalists transactions through Union Digital sector. InsurTech is a new domain, the expansion stage. BASIS is facilities. and the insurance sector?
been growing positively for the last more than one thousand active exemptions and rebates. An enabling are more inclined to invest in the Centre if a personal device is the country's youth and and we (FID) are requesting IDRA to assisting them in enhancing their We are also taking steps to prepare There are multiple aspects of
ten years. The economy is on track in Startups, generating more than 1.5 policy will promote the growth of ecosystem. unavailable. Bangladesh Bank is promote InsurTech in the come forward with ideas that will be growth by facilitating access to students for initiating their startups. InsurTech on which the startups can
graduating from the LDC status in million- embracing startups' products startups and the ecosystem attracting InsurTech is a relatively new sector working toward establishing an context that IDRA should incorporated to form a policy. We have different types of finance. We are also Proper implementation and work and provide sustainable
2024 and has made impressive and services part of the country's foreign investment in the ecosystem, with immense potential; there are integrated digital platform for maintained very strong conducting workshops for the HR persistence of such initiatives will solutions. However, there are some
human development strides. PwC, a everyday life. Additionally, BSEC benefiting its growth and employment multiple examples of successful financial transactions, which will also set up an incubation communication with IDRA to take development of these entities. Most bring forth multidimensional benefits factors that we have to keep in mind
global consultancy, also predicts (Bangladesh Securities and Exchange rate. implementation of the concept across proliferate InsurTech. Customer facility and policies to their input and direct on different importantly, we provide to our economy. A thriving startup as we move ahead. InsurTech is an
Bangladesh to become the 28th Commission) has also approved Fund of Funds: Startup Bangladesh the world. Hopefully, we will be able service delivery can completely be license to the insurance regulatory issues. InsurTech will play complimentary legal and IP assistance ecosystem is pivotal in making entirely new topic for startups.
largest economy in the world by 2030 small-cap stock exchange guidelines, and the ICT Ministry can form a fund to emulate them for Bangladesh. automated with our existing a pivotal role in our economic to ensure that they can smoothly efficient use of our demographic Therefore, we have to make them
which is a big step towards providing of funds through a public, private infrastructure. Insurance companies companies? development and maximizing solve legal and intellectual rights dividend and will enable us to aware of the possibilities and their
GROWING TECH SAVVY investors with Startup exits. collaboration to invest in Startups. can work with startups to implement The level of financial literacy is financial inclusion. Therefore we are disputes. actualize our vision of becoming a market potential coupled with proper
POPULATION The fund of funds makes downstream InsurTech with efficiency. Our currently satisfactory. However, we eager to work together in its There are immense opportunities for developed nation by 2041. government incentives to ensure the
Our tech adaptable young population GOVERNMENT SUPPORT: investments in venture capital and Honorable Prime Minister has formed MD. ZAFAR IQBAL NDC need to focus on InsurTech and its implementation and execution. local ICT companies to work with R H M ALAOL KABIR young innovators are interested in
(under 35 years) amounts to 62% of The Government of Bangladesh alternative investment funds that Startup Bangladesh Limited Company, Director (BIA) potential to impact lives across the insurance companies on InsurTech Assistant Senior Secretary Building consumer impacting the sector. Also, the
the population. Concurrently, it also commenced the National ICT Policy in invest in startups. which is providing venture capital to Additional Secretary country. Currently, the banking sector and thrive together. AI, Chatbot, Senior Consultant confidence is pivotal to academic syllabuses from school to
has an expanding middle-class 2009 to become Digital Bangladesh by Investor Bene ts: The government the startups. The ICT division is ready Financial Institutions Division is far ahead of its insurance Panelist Machine Learning, and Big Data are Research and Innovation Specialist universities should accommodate
population growing at 10% and is 2021. Government policies and needs to ensure an to offer assistance to the insurance Ministry of Finance counterparts, and InsurTech will play changing the insurance industry's iDEA Project, ICT Division the success of insurance topics on startup. It will enable our
expected to reach 34 million by 2025. projects from the ICT Ministry, such as investment-friendly environment in companies and the startups to ensure Government of Bangladesh a pivotal role in increasing consumer perception among the general companies. How can the youth to understand and make more
The crucial aspect of our economic iDEA Project and Startup Bangladesh Bangladesh. Recommendations would the wide use of InsurTech among the confidence in the industry. I have population across the globe. Over the past decade, the startups and insurance impactful execution of their ideas.
growth is that it is supported by mass Limited with 100 crore BDT (USD 11.5 be to update the Foreign Exchange general population. According to my observation, the noticed that people are not interested Technology also enables companies to advancements in the ICT sector have Concurrently, applications involving
mobile and internet connectivity. The Million) funds, are taken to improve Regulation Act 1947, reduce entry adaptation of technology in the in buying insurance because of the perform more accurate modelling, been pivotal in building the companies work together the latest technologies such as AI, Big
pandemic has also accelerated the use the local startup ecosystem. barriers, introduce Tax benefits and insurance sector has been sluggish. lack of transparency in the policies provide better service, and ensure foundation on which the startup Data, and IoT will bring consumer
of ICT technology, including digital Additionally, GoB is setting up more ease repatriation of foreign investors' Consequently, the adaptation of and the processes. We have to use greater transparency in claim ecosystem is thriving. The government trust and confidence and ensure
commerce, education, healthcare, and than twenty eight Hi-Tech Parks, profits to attract foreign investments. InsurTech among the operating technology to make the industry and settlement. If a win-win partnership is currently focusing on ensuring higher insurance penetration because
agriculture. including infrastructure support like Ease of Doing Business: Business companies has been rare. Big its operations more transparent. between the new tech startups and internet services at Union levels of greater accessibility.
data centers, to support technology processes, policies, and regulations companies have repeatedly failed to Also, if provided license, microfinance insurance companies will across the country. Concurrently, it
DEMOGRAPHIC BULGE WITH companies. have to be streamlined to be more N M ZEAUL ALAM PAA produce a comprehensive database of operators across the country can offer revolutionize both the sectors and has also been emphasizing creating A physical stamp
insurance policies, contributing to
THE RIGHT SKILL SETS : convenient to start and operate Senior Secretary their clients. The contribution of the increasing insurance penetration. BASIS will be glad to execute it. entrepreneurs through different requirement is proving to

specialized programs.
Currently, Bangladesh generates more COVID -19: FALL IN REVENUE startups/SMEs. A way forward could ICT Division sector towards Bangladesh's GDP is less Therefore, there is no better way to
than five thousand IT graduates each AND FUNDING be to use technology and fintech Government of Bangladesh than one percent. It is one of the lowest increase insurance penetration in the Non-bank or bank loans A single startup can have a massive be a barrier in ensuring an
impact on the socio-economic
year, which helps create a strong Since March 2020, the startups have platforms to make tax payments in South Asia. We understand that the country than broadening people's SYED ALMAS KABIR might prove very costly end to end digital service
group of entrepreneurs focused on been affected drastically by the seamless, transparent, and secure. Our journey towards digitalization industry is operating in a very knowledge about the sector. There will President for startups. How can we advancement of the country. Our in the insurance sector.
government has taken numerous
solving critical problems. Our median pandemic disruption. More than COV-19 Startup Support Fund: The started from nothing in 2009, and our conventional way in the country. I be demand for insurance once the BASIS
age of 27.9 years means more young twenty-four percent of companies ICT ministry can establish a BDT 150 Honourable Prime Minister's believe the insurance sector has enough companies use innovation to design ensure VC funding for initiatives to facilitate the country's How can The Ministry of
startup ecosystem's growth and are
people are willing to take risks and reported to have stopped operations, crore startup support fund. It can be endorsement of the transformation absorption capacity to implement products according to their I want to restate the fact that the local startups? poised to help the proliferation of Finance promote the
BIJON ISLAM explore innovations in the economy. with 56 % of startups seen at least a disbursed through grant/ quasi-equity/ has been pivotal for its success. Her technology identical to developed necessities. The latest technologies, proliferation of Digital Bangladesh Traditional loans can, indeed, prove InsurTech in the country. The very inclusion of e-stamp?
nations. If we can study and emulate
50 % drop in revenue generation. A
mindset has enabled the digital
since 2009 has allowed us to continue
Co-founder and CEO With limited opportunities for STEM total of sixty percent of Startups have matching fund nature to support the revolution to spread across the the successful insurance companies in including AI, Big Data, and IoT, can with our lives throughout the very costly for startups. However, VC first venture capital company, Startup How soon can we expect
graduates, they are looking into
LightCastle Partners Limited a runway of fewer than three months, 150 startups for a runway of more country; now, it is time to take it the world, it is possible to change the perform more accurate surveys and pandemic. Digital Bangladesh funding has not yet gained popularity Bangladesh, started its journey in the ministry to take such a
forming ICT enabled companies and threatening 1.5 million employment than a year. Based on multiple further. general people's mindset towards the ensure a better quality of service. mandate was a foresighted approach in our country. Conversely, the 2016 through the iDEA project. Its
Startups. NRBs (Non - Resident
Bangladesh startup Bangladeshis) are also bringing in and an annual loss of over USD 53 criteria, i.e., employment, market sector. We (Finance Ministry) maintain Therefore, firstly, we have to inform by our honourable Prime Minister that government can provide various mission was to take the startup step?
potential, and post-pandemic adjusted
incentives to catalyze the practice.
ecosystem is coming of both investment capital and Million in 2020. However, the valuation, startups can be categorized How can the ICT division regular communication with IDRA. the customer about insurance and its has allowed our economy to survive They might include tax reductions or ecosystem to another level by I will not comment on the technical
aspect of the digitization of the
benefits, and then the companies need
providing comprehensive support.
age riding on critical knowledge remittance, proving crucial disruption is also propelling as- small, medium, and large. assist in implementing However, the same cannot be said for to assure them of competency and and thrive through the use of ICT. rebates. If the practice can be Startup Bangladesh Company Limited revenue stamp. Concurrently, I do not
the insurance companies. We feel there
Concurrently, our startup culture is
accelerated digital services adoption
drivers: for the sector's robust growth. with Digital Financial Services, How can VC funding and InsurTech through the is a lot to be done for the sector. IDRA transparency. thriving, and young innovators are incentivized, it will become popular in and iDEA project provides funding or believe that the step will bring a

our startup ecosystem. Subsequently,
Bangladesh, the 39th largest economy STARTUP ECOSYSTEM AT AN Logistics, and Grocery on -demand, low-cost loans be facilitated has commenced the Unified Messaging bringing new ideas that are catalyzing ESF is another fund by the grants to startups on three levels significant change in insurance
and one of the fastest-growing INFLECTION POINT EdTech, HealthTech seeing steep for those eager to invest in startup ecosystem? Platform (UMP) to ensure accurate Can we expect IDRA and socio-economic progress. Our young Bangladesh Bank which provides starting from Pre Seed (growth stage) penetration in the country. It is one of
countries, showed an impressive growth. Since its inception, the ICT division documentation after policies are FID to accommodate initiators and entrepreneurs have loans to startups at a 2% rate, funding. We provide a grant of Tk One the numerous issues that need to be
annual GDP growth rate of ~6.5% over The Bangladesh Entrepreneurship InsurTech? has been assisting various sectors in finalized. However, the insurance InsurTech in the already raised foreign investments including the option of a grace period. Million to enable startups to develop addressed in the sector. Other issues
Ecosystem is at an inflexion point
the last decade. Since then, the RECOMMENDATIONS: I want to clarify that VC funding is not becoming more efficient through companies have been hesitant to get on worth more than 200 million USD. in the initial stages. The results have deserve more priority; for example,
country’s annual GDP growth rate with an excess of USD 200 million in Startup Policy: cheaper than bank or NBFI loans; they digitization. Consequently, it is the board, much to the sector's peril. insurance sector by Innovation is pivotal for the success been remarkable; ShopUP, which digitization of KYC is more critical for
international investments from
officially surpassed that of India’s in With the Digital Bangladesh agenda in are entitled to take large chunks of right time to digitize our insurance Therefore, without the adaptation and drafting new policies? of the current initiatives. We have to recently secured a significant amount the industry.
2016 and has been higher than that of big-name corporate investors and Government's core, it is eminent to profit from the company. However, the sector as internet connectivity has implementation of the latest We are currently at the learning stage make our youth more innovative, and of international funding, is also the Eventually, if the industry
venture capitals, investing in
its neighbor. GDP per capita has been form a startup policy to offer multiple risk-sharing structure in VC funding is become available at Union levels technologies, this sector will be of InsurTech, and the insurance it requires bringing some changes in recipient of pre-seed financing from stakeholders believe that digitization
growing at rates over 5% since 2015, industries like FinTech, Logistics, and benefits for the startup and ecosystem very convenient for startups. They across the country. Therefore, we have lagging. Digitalization will ensure companies are evolving to adapt to our educational infrastructure. the iDEA project. Similarly, investment is necessary, the execution will not be
Mobility the last four years. The
peaking at USD 1,855 (as of 2019), (startups) are not bound to pay back the infrastructure to make proper use transparency and competency of the BASIS has established a "growth of up to Tk 5 crore is facilitated when very technically challenging.
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