Cenbank hands over letter of intent for launching digital bank to Nagad

The Bangladesh Bank has given a letter with its seal of approval to Nagad Digital Bank Ltd for launching the country's first full-fledged digital bank, thus opening up a new window of opportunities for the digital financial industry to thrive at a faster pace.

Bangladesh Bank Governor Abdur Rouf Talukdar handed over the Letter of Intent (LoI) to Tanvir A Mishuk, founder and managing director of Nagad Ltd., at the former's office on Wednesday (25 October), reads a press statement.

Bangladesh Bank's Deputy Governor Abu Farah Md Nasser, Bangladesh Bank Director (BRPD) Mohammad Shahriar Siddiqui, Additional Director (BRPD) Md Monirul Islam and Executive Director of Nagad Ltd Niaz Morshed Elite were present among others.

At that time, Governor Abdur Rouf extended his heartfelt wishes for Nagad Digital Bank Ltd and hoped for its continued success.

Nagad, a leading mobile financial service provider in Bangladesh, has rapidly amassed a substantial customer base and claimed a notable market share through its innovative products and services. With the trust of over 8.5 crore customers, Nagad has spearheaded transformative advancements in mobile financial services, fostering healthy market competition to the benefit of consumers. Notably, this state-owned MFS operator also earned recognition from Prime Minister Sheikh Hasina for becoming the fastest-growing unicorn in the country.

Over the past three years, Nagad diligently pursued regulators for permission to introduce digital banking services in Bangladesh. With the greenlight from the Bangladesh Bank, Nagad Digital Bank Ltd. has already started its preparation to take banking services to people's doorsteps.

Tanvir A Mishuk, founder and managing director of Nagad Ltd., said, "Today, we have received approval from the Bangladesh Bank to establish the country's first digital bank. Nagad Digital Bank aims to serve those who face challenges visiting traditional banks for various reasons. We will bring banking services to people's fingertips. This exemplifies another facet of financial inclusion for our nation. We aspire to provide single-digit loans to individuals outside conventional business sectors without collateral requirements. Furthermore, alongside introducing small savings schemes, the digital bank will address the day-to-day needs of common people. This endeavour will pave the way for an even more accessible journey towards a Smart Bangladesh."

Tanvir A Mishuk also emphasised that Nagad Digital Bank will promptly start its services on completion of all formalities and necessary preparations.