Nagad Digital Bank PLC gets licence from Bangladesh Bank

DHAKA, Bangladesh, June 5, 2024 /PRNewswire/ — The Bangladesh Bank has granted licence to Nagad Digital Bank PLC, paving the way for it to commence operations as the country’s first full-fledged digital bank. 

In this way, Bangladesh is going to formally enter the world of digital banking. Once Nagad Digital Bank PLC is launched, it will function the same as a scheduled bank does.

On Monday (03 June), Mohammad Shahriar Siddiqui, director (BRPD) of Bangladesh Bank, handed over the copy of the digital bank licence to Tanvir A Mishuk, founder and chief executive officer (CEO) of Nagad Ltd., at the office of Bangladesh Bank’s Governor Abdur Rouf Talukder.

On 24 October last year, the central bank issued letters of intent to Nagad and another company for digital bank licences. Only Nagad met all the conditions within the stipulated time, leading to its receipt of the first digital bank licence. Earlier, around 500 companies, including Nagad, submitted 52 applications for securing a digital bank licence following the central bank’s call for applications through its website. However, based on technical capabilities and other considerations, only two companies were granted letters of intent.

Upon receiving the digital bank licence, Tanvir A Mishuk, founder and CEO of Nagad Ltd., said, “We have been advocating for a digital bank to transform Bangladesh into a smart economy through cashless transactions. A significant portion of the country’s people remains financially excluded, and Nagad Digital Bank will work for them. It is historic to have got the country’s first digital bank’s licence. I extend my greetings to our 9.5 crore customers, and everyone involved.”

Regarding the preparations for launching the digital bank, Tanvir A Mishuk mentioned, “Customers will no longer need to visit banks; instead, banking services will be at their fingertips. We will offer single-digit interest loans without any collateral, introduce micro savings schemes and provide solutions to people’s day-to-day transactions. We have completed all preparations and expect to launch this innovative banking service soon.”

In just five years, Nagad has onboarded 9.5 crore people, showcasing innovations and advanced technology. Nagad’s rapid progress has earned it recognition from Prime Minister Sheikh Hasina as the country’s fastest-growing unicorn.

As part of its digital banking preparations, Nagad has achieved significant technological advancements and partnered with Silverlake Group, one of the world’s leading banking solutions companies. The company is now working on credit rating capabilities using AI. Now the wait is for the start of digital banking operations.

About Nagad Ltd (https://www.nagad.com.bd/)

Nagad Limited is one of the leading MFS operators in Bangladesh’s payment industry with 95 million registered customers and an average daily transaction of more than USD 153 million. The digital payment platform, known as a successful public-private partnership between Bangladesh Postal Department and the private sector, was inaugurated in 2019 by Honourable Prime Minister Sheikh Hasina of the People’s Republic of Bangladesh. 

 

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