Banglalink to apply for digital banking licence
Mobile network operator Banglalink has decided to apply for a digital banking licence as it looks to leverage its vast pool of customers to serve a population increasingly using technologies to make and receive payments.
The decision to apply for a digital bank is based on "our global strategy of transforming ourselves" as a digital operator, Kaan Terzioğlu, group chief executive officer of Banglalink's parent company Veon, told The Daily Star on Monday.
"Our digital operation strategy means we are providing digital services to our customers in finance, entertainment, healthcare and education."
VEON, which operates in seven countries, is increasingly launching more digital services amid the decreasing voice revenue in the global telecom industry.
In Pakistan, it has digital services such as JazzCash, Tamasha and Mobilink Microfinance Bank. In Kazakhstan, it launched digital services such as Simply, Izi, Hitter, and BeeTV.
The decision to apply for a digital bank is based on "our global strategy of transforming ourselves" as a digital operator
In Bangladesh, Toffee was an example of how great feats could be achieved in entertainment, said Terzioğlu, adding that MyBanglalink is a super app that addresses education and healthcare.
"Time is right for us to be active in digital financial services. There are 1,440 minutes in a day and we want to be at our customers' service every single minute."
The company is planning to utilise its existing customer base as a strategic asset to enhance its position in the digital banking market and bring innovation.
"We already have 4.2 crore customers and if they come to digital banking, it would be great for the country," said Banglalink's Chief Corporate & Regulatory Affairs Officer Taimur Rahman.
According to him, another strength of telecommunication companies is their strong distribution channel, which will pave the way for building a solid ecosystem for a digital bank.
"Now, we need a partner."
In June, the BB invited applications from entrepreneurs interested in establishing digital banks.
It opened a portal for applications to this effect and said it would accept applications until August 1 this year. Later, the deadline was extended to August 17.
Banglalink is the lone telecom operator that has so far applied for a digital banking licence.
Grameenphone and Robi, the two top operators, are yet to receive a green signal from their respective parent companies Telenor and Axiata about whether they would apply for a digital banking licence, according to officials of both operators.
Bank Asia, bKash, Pragati Life Insurance, ACI Ltd, Padma Bank and Crystal Insurance are among the companies that have applied for digital banking licences and some companies are expected to follow suit.
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