In a groundbreaking move towards financial innovation, the Bangladesh Bank has granted digital banking licenses to two out of 52 applicants, marking a significant stride in enhancing access to finance. Among the pioneers in this digital banking revolution are Nagad Digital Bank and Kori Digital Bank of ACI.
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The Rise of Kori Digital Bank
Leadership at the Helm: At the forefront of Kori Digital Bank is Habibullah N Karim, the esteemed chairman, bringing a wealth of experience to the table. His notable background includes being the husband of former finance secretary Fatima Yasmin, who currently holds the position of vice president at the Asian Development Bank.
Sponsorship Powerhouses: Kori Digital Bank boasts sponsorship from prominent conglomerates such as ACI Ispahani, Paragon, Transcom, Square Group, and some other individuals, adding considerable weight to its foundation. The distinguished sponsors include Rubana Huq, the chairman of Mohammadi Group, and Kamran T Rahman, chairman of the Kapna Tea Company and former president of Bangladesh Employers’ Federation, IT entrepreneur Habibullah N Karim, former managing director of MTB Anis A Khan, Raihan Shamsi and ASM Mainuddin Monem of Abdul Monem Limited.
Accelerating Financial Inclusion
With the issuance of letters of intent by the Bangladesh Bank, Kori Digital Bank is poised to play a pivotal role in expanding people’s access to finance. The digital banking license is a testament to the bank’s commitment to embracing cutting-edge technology for the benefit of its customers.
Visionaries and Decision-Makers
As the sponsors of Kori Digital Bank, including renowned conglomerates and influential individuals, come together, the next steps involve strategic decisions on capital raising and infrastructure development within the stipulated deadlines. Monir Hossain Khan, the finance director of ACI Group, highlights the collaborative efforts to chart the course for Kori Digital’s future.
Towards a Digital Financial Landscape
Kori Digital Bank’s entry into the digital banking sphere aligns with global trends, where traditional banking models are evolving to meet the demands of a tech-savvy and interconnected world. The transformative impact of digital banking promises not only increased accessibility but also greater efficiency and convenience for users.
A Future of Financial Innovation
As Kori Digital Bank sets out on this revolutionary journey, the financial landscape in Bangladesh is on the brink of a transformation. With visionary leadership, robust sponsorship, and a commitment to leveraging technology, Kori Digital Bank stands as a beacon of financial innovation, heralding a future where digital banking becomes synonymous with financial inclusion and empowerment.
Habibullah N. Karim on Kori
The digital bank, approved by Bangladesh Bank, is in the final stages of preparation, with plans to commence operations in the middle of the current year, as revealed by Habibullah N. Karim, the Chairman of Kori Digital Bank, in an interview with The Prothom Alo.
Habibullah N. Karim, a Yale University electrical engineering graduate who returned to the country in 1985, and joined the technology business. Established Technohaven Company in 1986. He is one of the founders of the Bangladesh Association of Software and Information Services (BASIS). Technohaven works with software as well as various technology support from the government and various banks.
Explaining the choice of the name “Kori,” Karim mentioned its historical significance as a medium of exchange in the country for thousands of years. He envisions transforming Kori into a digital medium of exchange through the establishment of the digital bank.
When questioned about the motivation behind entering the digital banking sector, Mr. Karim highlighted their track record of introducing innovative technical services locally. The goal is to pioneer a digital banking model that will gain acceptance both domestically and globally, offering a full range of services comparable to traditional banks, but without physical branches or extensive foreign trade and large loans.
Kori Digital Bank plans to provide all banking facilities, including deposits, micro to small and medium loans, expatriate income collection, bill payments, shopping, and money transfers, exclusively through digital means. Services will be available around the clock through a 24-hour call center, allowing for immediate digital account openings with a national identity card and photo.
The primary channel for banking services will be through a dedicated app, utilizing specialized software to provide customers with efficient and swift financial services. Kori will facilitate digital deposits and withdrawals through various platforms, including traditional banks and mobile financial service providers.
Karim emphasized that Kori Digital Bank aims to address the challenges faced by common people in conducting transactions digitally, making the process easy and quick.
The bank’s strategy involves creating a system where customers can complete all transactions digitally, reducing the reliance on cash. Addressing competition concerns, Karim stated that traditional banks and mobile financial services are not seen as competitors. Instead, Kori Digital Bank aims to bridge the gap for the two-thirds of the country’s population currently deprived of banking services.
Responding to skepticism about trust in an institution without physical infrastructure, Karim expressed confidence that the ease and speed of transactions would establish trust among customers. Furthermore, the ownership structure includes reputable entities like ACI, Square, Ispahani, Transcom, Paragon, Mohammadi Group, along with experienced professionals from the banking, telecom, and technology sectors.
class=”wp-block-heading”>The Final Thoughts
Kori Digital Bank is going to start an excellent new chapter in the banking arena of Bangladesh. With the right leaders, owners, and sponsors, the industry will enjoy a truly digital banking experience in the days to come.
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