City Bank’s vision for a cashless, credit-driven Bangladesh

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City Bank has seen a 21% monthly growth in credit card issuance since the removal of the PSR requirement, signalling a turning point in Bangladesh's financial sector

Credit cards in Bangladesh are experiencing unprecedented growth. At City Bank, for instance, our monthly credit card issuance has surged by 21% since the withdrawal of the Proof of Submission of Income Tax Return (PSR) requirement in July. While industry-wide figures are still emerging, it's clear that this policy change has opened the floodgates. We see competitors experiencing similar trends, and I am confident that this growth trajectory will continue in the years ahead.

For me, credit cards are far more than a convenient payment method. They are shaping lifestyles and transforming consumer behaviour. With flexible EMI options, they make aspirational consumption accessible. They are fostering a digital-first, cashless economy and cultivating a rewards-oriented mindset that encourages financial prudence. The widespread adoption of credit cards offers a unique opportunity to promote greater financial literacy and responsibility across the nation.

Despite this promise, credit card penetration in Bangladesh remains modest — just around 1.5% of the population. For a country with a labour force of over 75 million, we should be aiming for at least 10 million cardholders. This gap reflects enormous untapped potential. At City Bank, we are seizing this opportunity, particularly by focusing on the lower and middle-income segments, now that the PSR requirement has been removed. Our approach is to expand access responsibly while strengthening underwriting processes to ensure sustainable growth without creating over-indebtedness.

The American Express Gold card by City Bank. Photo: Courtesy

Security remains paramount in this evolution. Customers need confidence in digital and e-commerce transactions. That is why we have invested in advanced fraud detection systems, robust transaction monitoring, and two-factor authentication. These measures ensure safety while keeping transactions seamless and hassle-free.

As the market evolves, the challenge is to stand out in an increasingly crowded space of cashback and rewards programmes. For us, the key lies in creating value that goes beyond transactions. Through strategic partnerships with local and international retailers, airlines, and service providers, we offer our customers exclusive privileges — from travel perks and dining offers to premium lifestyle experiences. This transforms a credit card from a mere payment tool into a gateway to a richer lifestyle.

From a regulatory standpoint, recent policy changes such as the removal of the PSR requirement have already fuelled growth. But there is scope for more. I believe expanding credit limits and raising personal travel quota ceilings would create further momentum. We continue to engage constructively with regulators to advocate for these measures, confident that they will benefit the nation's economy and credit culture.

Finally, the financial landscape in Bangladesh is evolving with innovations like digital wallets and "buy now, pay later" models. These services are democratizing credit access, particularly for younger and lower-income consumers. In partnership with bKash, City Bank is already enabling seamless BNPL experiences that empower people to purchase aspirational products with ease. Rather than competing with traditional credit cards, these innovations complement them by broadening credit inclusion, fuelling consumption, and encouraging banks to deliver more customer-centric, digital-first solutions.

The future of credit cards in Bangladesh is bright. They will not just facilitate transactions — they will redefine lifestyles, create financial opportunities, and help build a more digitally empowered economy.