In Bangladesh's growing digital economy, locally developed software plays a critical role in business innovation, service delivery, and export earnings. However, the current financial system does not formally recognize software as a monetizable asset. As a result, many ICT and tech-based companies are unable to use their most valuable intellectual property (IP)-software-as collateral to access loans or credit from financial institutions.
 
Policy Problem
>> Lack of financial recognition: Financial institutions generally do not recognize internally developed software as a bankable asset.
>>Valuation challenges: There are no standardized procedures for independent software valuation acceptable to banks and regulators.
>> Collateral limitations: Most SMEs and tech startups lack tangible assets, limiting access to working capital despite holding high-value intangible assets like software.
>>Regulatory gaps: Current regulations under Bangladesh Bank, BFRS, and Company Law do not directly support software-backed lending.
 
Policy Objectives
1.    Formally recognize locally made software as an intangible business asset.
2.    Enable monetary valuation of software based on standardized criteria.
3.    Allow financial institutions to accept software (or its valuation) as loan collateral or creditworthiness criteria.
4.    Create an ecosystem for IP-backed financing in line with Digital Bangladesh Vision and Smart Bangladesh agenda.

>> Read More: Policy for locally developed software as an asset

Proposed Policy Measures
1. Regulatory Recognition
>> Amend Bangladesh Bank’s loan collateral policies to include intangible assets, including locally developed software, under regulated valuation frameworks.

2. Software Valuation Guidelines
Develop national software valuation standards under guidance from:
>> Bangladesh Bank
>> Bangladesh Association of Software & Information Services (BASIS)
>> Institute of Chartered Accountants of Bangladesh (ICAB)
>>Bangladesh ICT Division

3. Software Asset Registration
>> Establish a central repository or registry for software IP ownership and valuation reports (possibly via BIDA or the ICT Division).

4. Pilot Financing Program
>> Launch pilot schemes through select banks (e.g., DBBL, IDLC, Startup Bangladesh) that issue loans against software valuation with risk-sharing guarantees.

5. Capacity Building & Legal Reform
>>Train bank officers, auditors, and startup founders on IP accounting and software valuation.
>>Amend the Companies Act and Secured Transactions Act to allow enforcement of intangible asset-based lending.
 
Expected Benefits
Access to Capital: Improved loan access for 2,000+ software SMEs and startups.
    >> Innovation: Encourages local R&D and software product development.
    >>Exports: Enhances competitiveness of Bangladesh’s $1.5B software export sector.
    >>Financial Inclusion: Enables asset-light digital businesses to be financially included.
 
Stakeholders
>> Government: ICT Division, Ministry of Finance, Bangladesh Bank
>> Industry: BASIS, Private banks
>> Regulatory: ICAB, BSEC, RJSC
>> Beneficiaries: Software SMEs, startups, fintechs, freelancers
 
Next Steps
Recognizing and monetizing locally developed software is essential for a smart, knowledge-driven economy. Bangladesh should adopt a phased, regulatory-backed approach to allow financial institutions to assess, value, and lend against software assets, aligning with its long-term ICT and financial inclusion goals.
 
Recommended Immediate Actions
>> Convene a multi-stakeholder task force on software asset valuation (ICT Division-led).
>> Draft and publish a Software Valuation and Collateral Policy Framework within 12 months.
>>Launch 2–3 pilot lending programs with software valuation-backed credit by Q2 2026.

Writer: Mohammed Samiul Islam, Managing Director, Ubique Corporation Ltd., Z Tech PLC