The Bank of Maldives, BML, has confirmed the acquisition of SME Development Finance Corporation (SDFC).
The bank said that as part of this strategic move, SDFC will become a Shari’ah-compliant, digital-first subsidiary, providing technology-driven financial services, focused exclusively to broadenaccess to finance for the Micro, Small and Medium Enterprise (MSME) sector includingunderserved segments such as start-ups, women-led businesses, fishermen, farmers and agribusinesses as well as trade and e-commerce businesses.
BML stated that the acquisition of SDFC is underpinned by a clear strategic rationale, leveraging BML’s robust financial position, extensive national network and growing digital banking expertise, to drive the digital transformation of MSME banking in the Maldives and promoting financial inclusion and economic diversification.
It further noted that SDFC will serve as the primary platform to deliver tailored financial solutions, such as a digital lending platform and, digital marketplace, in addition to enhancing access to finance and financial literacy support for the industry.
The Bank said that it expects to finance MVR 500 million through the subsidiary and that an investment of MVR 300 million will be made over three years through the recently introduced Maldives Islamic Social Finance Initiative (MISFI), further supporting the Bank’s commitment to inclusive and sustainable growth
