Nagad, Kori to get licence to open full-fledged digital bank
The Bangladesh Bank has given the initial nod to eight companies to launch digital bank.
Two of the eight companies were given approval to open full-fledged digital bank and five to open digital wing while the remaining three companies will get licence to launch full-fledge digital bank after reviewing the service and performance of two now-approved companies.
The central bank took the decision at a board meeting on Sunday. Bangladesh Bank executive director and spokesperson Md Mezbaul Haque told newspersons this after the meeting.
Names of nine companies were placed at the board meeting and since an insurance company is involved with one of the companies, the board then considered the reaming eight companies, he said.
Mezbaul Haque also said a decision has been taken to issue letter of intent (LoI) to Nagad Digital Bank and Kori Digital Bank.
The central bank also decided to allow Digi10 Digital Bank of 10 commercial banks, bKash Digital Bank, and Bank Asia’s Digital Bank to open digital banking windows as they are already in business.
Besides, the central decided to issue LoI to three more digital banks after reviewing the services and performance of Nagad Digital Bank and Kori Digital Bank. The three banks are - Smart Digital Bank, North East Digital Bank and Japan Bangla Digital Bank, he added.
According to sources at the Bangladesh Bank, Mohammad Farid Khan, chairman of Summit International, and others are with the Nagad Digital Bank along with the incumbent entrepreneurs while Habibullah N Karim, husband of former finance secretary Fatima Yesmin, is the principal entrepreneur of Kori Digital Bank.
Fifty two firms applied to the central bank seeking licences to launch digital bank.
The government plans to launch digital bank before the next parliamentary election. According to the people concerned, the government previously approved traditional banks on political consideration, but this time businesspeople and bureaucrats dominated the sector.