Nagad Digital Bank, the brainchild of the mobile financial service provider Nagad, has received preliminary approval, marking a pivotal moment in its quest for operational licensing. Led by Muhammad Farid Khan, a director of Summit International, and backed by the visionary Tanvir Ahmed Mishuk, founder and MD of Nagad, the digital bank aspires to be a powerhouse that orchestrates every aspect of a Bangladeshi’s financial journey. Bangladesh Bank has granted digital banking licenses to two out of 52 applicants-Nagad Digital Bank and Kori Digital Bank
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Surrendering the NBFI licence
In a strategic move to align with evolving industry dynamics, Nagad took a significant step in August 2023 by surrendering its Non-Bank Financial Institution (NBFI) license. Opting for a forward-looking approach, Nagad actively sought a digital bank license from regulatory authorities. This transformative decision underscores Nagad’s commitment to staying at the forefront of financial innovation, adapting to emerging trends, and meeting the evolving needs of its users. By relinquishing the NBFI license and pursuing a digital bank license, Nagad positions itself to explore new horizons in the financial services sector. This strategic shift reflects the company’s dedication to harnessing cutting-edge technology and solidifies its role as a key player in shaping the future of digital banking in Bangladesh.
Ready with the State-of-the-Art Technology
In a bold move towards the future of finance, Nagad, the joint venture mobile financial services provider with the Bangladesh Postal Department, is gearing up to launch digital banking services on March 26 next year. This strategic expansion underscores Nagad’s commitment to harnessing advanced technology to bring innovative and accessible financial solutions to the forefront.
Nagad’s confidence in a rapid launch stems from its current utilization of advanced technology. By leveraging cutting-edge solutions, Nagad has been able to stay at the forefront of the industry, offering efficient and secure financial services to its users. The integration of technology not only streamlines operations but also positions Nagad as a key player in the evolving digital banking ecosystem.
Redefining Banking Through Innovation
Nagad Digital Bank positions itself as the first full-fledged digital bank in Bangladesh, heralding a paradigm shift in banking dynamics. The institution is poised to eliminate traditional barriers, replacing physical interactions and paperwork with a comprehensive suite of customer-centric services. Tanvir A Mashuk, Nagad’s founder and managing director, envisions a banking experience centered around accessibility, security, and customer support.
class=”wp-block-heading”>Advancing Toward a Cashless Future
Embracing the government’s vision of achieving 75 percent digital transactions by 2027, Nagad Digital Bank strategically aligns its initiatives to foster a cashless transaction ecosystem nationwide. By contributing to this ambitious target, the digital bank becomes an active participant in the vision of establishing a Smart Bangladesh by 2041.
Key Features and Services by Nagad Digital Bank
One of the key features of Nagad Digital Bank is its commitment to operate without physical branches. Instead, it will have a head office and a call center for customer support. Services will be seamlessly delivered through the website and mobile app, offering financial transactions akin to those in a traditional bank branch.
Comprehensive Financial Services:
Customers can expect a wide array of services, mirroring those offered in physical branches. This includes opening accounts, checking balances, transferring money, paying bills, and applying for loans, among others. Nagad Digital Bank is set to redefine the customer experience, emphasizing digital interactions and convenience.
Nagad Digital Bank’s innovative approach extends to digital lending, aiming to disrupt the financial industry. By leveraging customer transaction data and financial behavior, the bank plans to offer personalized credit solutions. The introduction of single-digit, collateral-free loans is targeted towards small informal businesses and farmers, providing an alternative to high-interest moneylenders.
AI-Based Credit Rating System
A highlight of Nagad Digital Bank’s strategy is the development of an AI-based credit rating system. This system, utilizing National ID (NID) and mobile number data, assesses creditworthiness. The goal is to instantly disburse loans through Nagad’s app, eliminating paperwork and the need for physical visits to bank branches.
The digital bank aims to extend its reach to unbanked and underbanked populations, acting as a gateway to financial services. The user-friendly mobile app is designed to enable marginalized individuals to save, transact, and invest without a traditional bank account.
Cybersecurity and Trust:
Nagad Digital Bank prioritizes security and trust, ensuring the highest standards of cybersecurity to safeguard user data and transactions.
Nagad Digital Bank emerges as a catalyst for change, ushering in an era of inclusive, convenient, and innovative banking. With a commitment to technological advancement, financial inclusion, and national development, Nagad Digital Bank stands poised to redefine the future of banking in Bangladesh, one digital transaction at a time.