Nagad Digital Bank, the first full-fledged digital bank in Bangladesh, is all set to transform the local banking landscape. It aims to replace traditional physical interactions and paperwork with a comprehensive array of customer-centric services. This transformation will streamline services and promote financial inclusion, fostering an integrated financial ecosystem. “Our motto is to bring unparalleled banking convenience to the fingertips of millions,” said Tanvir A Mishuk, Nagad’s founder and managing director, during an interview with UNB. “Nagad Digital Bank will redefine how people interact with their finances, emphasizing accessibility, security, and customer support. We’re ushering in a new era of inclusive and convenient banking,” he said. Read more: Nagad became a billion-dollar company in just 3 years, 5 more Bangladeshi unicorns by 2025: Palak  “We will operate without physical branches, having only a head office and a call center for customer support. Our services will be delivered through our website and mobile app, enabling financial transactions similar to those in a traditional bank branch,” the Nagad MD said. Mishuk  explained that customers would be able to perform many of the same services offered in physical branches, such as opening accounts, checking balances, transferring money, paying bills, applying for loans, and more. “To meet the financial needs of individuals and small businesses, we will introduce digital lending. This will disrupt our financial industry,” he highlighted. By leveraging data on customer transactions and financial behavior, Nagad Digital Bank will offer personalized credit solutions, making borrowing more accessible, he said. The digital bank plans to offer single-digit, collateral-free loans for small informal businesses and farmers, who currently rely on moneylenders charging exorbitant interest rates. “To assess creditworthiness, we’ve developed an AI-based credit rating system. This system evaluates a loan seeker’s transaction data, using their National ID (NID) and mobile number, to instantly disburse loans. All will be done using Nagad’s app, eliminating paperwork and the need to visit bank branches. This will bring the informal sector’s money into the formal channel,” Mishuk said. Read more: Nagad becomes Bangladesh’s fastest unicorn Regarding cost-effectiveness, Mishuk mentioned that the digital bank will have lower operating expenses than traditional banks due to the lack of physical infrastructure. This reliance on technology will result in lower charges and interest rates for customers. Promoting financial inclusion is another key focus. Nagad Digital Bank aims to extend its reach to unbanked and underbanked populations. “Our user-friendly mobile app will act as a gateway to financial services for these marginalized people, enabling them to save, transact, and invest without a traditional bank account,” he added. “We will also give utmost priority to security and trust. We are committed to ensuring the highest standards and have already enhanced our cybersecurity measures to safeguard users’ data and transactions. “All our initiatives are strategically designed to promote the adoption of cashless transactions nationwide. This effort aligns with our government’s goal of achieving 75 percent digital transactions across the country by 2027,” he noted. “By advancing towards this target, we contribute to the vision of establishing a Smart Bangladesh by 2041, fostering a technologically advanced and digitally inclusive nation,” Tanvir A Mishuk said. Read more: Students of XI can pay college admission fees thru’ Nagad

Pathao, Bangladesh’s largest digital services company, is awaiting a central bank licence to set up a digital bank. The proposed Pathao Digital Bank is a natural progression of the company’s mission to enhance the lives of its 10 million young consumers and 500,000 drivers, delivery agents, and SME entrepreneurs in Bangladesh, according to a press release from the digital services company. Pathao feels the needs of this segment remain unaddressed by the local financial sector. They qualify for and need access to credit and yet face an unreasonably high barrier, because traditional banks and financial institutions lack the distribution, data and technological capabilities to assess the creditworthiness of these consumers and technology-enabled asset-light small businesses. With its rich customer data, advanced analytics and engineering capabilities, Pathao believes it is uniquely positioned to solve the financial access problem of this segment – a sample of which was presented with Pathao Pay Later, Bangladesh’s “first and largest” Buy Now Pay Later (BNPL) solution. Body of Pathao driver recovered from Tongi’s Turag river Powered by artificial intelligence and machine learning algorithms, Pathao Pay Later offers flexible spending limits and a frictionless user experience to over 100,000 of Pathao’s most loyal and active customers. The product has seen remarkably low delinquencies since its launch on November 16, 2021. Further, in April 2023, Pathao was awarded a payment service provider (PSP) licence to launch a digital payment wallet; Pathao Pay is already in closed beta testing and will be rolled out commercially in the coming months. A digital banking licence would provide the regulatory framework for Pathao to unleash its cutting-edge technology to truly enable consumers and small businesses to transact how they want, access funds when they need, and manage funds how they should. Pathao rider killed in city road crash      “Pathao is far more than a brand, or a suite of products – it is a lifestyle. Just as it has radically transformed urban transportation and the gig economy in Bangladesh, Pathao Digital Bank will reshape banking in Bangladesh. With this, we believe we can catalyse an important growth stage of the Bangladesh economy,” said Fahim Ahmed, managing director and CEO of Pathao. Founded in 2015, Pathao is a market leader in ride-sharing, food delivery and e-commerce logistics, serving more than 10 million consumers, daily earners and small businesses. All three verticals are profitable. With $50 million in capital raised, Pathao is one of the most highly funded start-ups in Bangladesh. The company was recently awarded the Employment Catalyst Award by Prime Minister Sheikh Hasina for outstanding contribution to job creation, particularly in the youth segment. Pathao Courier to get upay cash collection solutions