Thirteen Firms Apply for Digital Bank Licences in Bangladesh as Central Bank Tightens Capital Rules

Dhaka, 4 November 2025: A total of thirteen entities, including some of Bangladesh’s leading financial service providers, telecom operators, and major business conglomerates, have formally applied to the Bangladesh Bank (BB) for digital banking licences, marking a new chapter in the country’s financial technology transformation.

The applications follow the central bank’s recent decision to raise the minimum paid-up capital requirement for digital banks from Tk 125 crore to Tk 300 crore, in an effort to ensure financial resilience and investor accountability.

Applicants and Their Proposed Digital Banks

Several of the applicants feature cross-border partnerships and international expertise, while others represent domestic fintech innovation. The list reflects both established institutions and new entrants seeking to capitalise on Bangladesh’s rapidly evolving digital financial ecosystem.

A New Era of App-Based Banking

Under the Bangladesh Bank’s Digital Bank Framework (2023), digital banks are designed to operate entirely online—without any physical branches. All transactions, customer service, and banking functions will be conducted through mobile applications and digital platforms.

Customers will have 24/7 access to financial services, including virtual debit cards, QR-based payments, and instant fund transfers. However, digital banks will be prohibited from issuing physical cards and restricted from financing medium or large-scale industries. Instead, they will focus on small loans, retail financing, micro-entrepreneurship, and financial inclusion initiatives.

Clients of these digital banks will be able to withdraw and deposit funds via ATMs and authorised agents of other banks, ensuring national interoperability.

Industry Reactions and Strategic Intent

In a statement, VEON, the parent company of Banglalink, highlighted its international digital banking experience, serving more than 40.7 million monthly users across Pakistan, Kazakhstan, and Uzbekistan. The company said it aims to replicate its proven model of “financial inclusion through secure and accessible digital services” in Bangladesh.

VEON’s Group Chief Executive Officer, Kaan Terzioglu, stated:

“VEON is committed to transforming consumer and enterprise services across all our markets. Our ambition is to lead in digital financial services, education, entertainment, and cloud-based enterprise solutions in every country we operate — and Bangladesh is no different.”

Akij Resource Group, another major applicant, emphasised its alignment with Bangladesh Bank’s digital vision. Md Firoz Kabir, Chief Digital and Innovation Officer, said:

“Our digital banking initiative supports the Smart Bangladesh 2030 Vision. Users will enjoy seamless, transparent financial services — all without transaction fees.”

Policy Background and Regulatory Evolution

The Bangladesh Bank first approved its Digital Bank Guidelines in 2023, introducing a structured regulatory framework for branchless, app-based institutions aimed at deepening financial access in rural and marginalised areas.

The framework requires digital banks to launch an initial public offering (IPO) within five years of receiving a licence, with the IPO amount equal to or greater than the sponsors’ paid-up capital.

Initially, the central bank approved two digital banks — Nagad Digital Bank and Kori Digital Bank — before suspending further approvals following the political transition after the August 2024 change in government.

In August 2025, the Bangladesh Bank reopened applications, extending the submission deadline from 30 September to 2 November following investor requests.

Outlook: Fintech Innovation Amid Stronger Oversight

Economists and fintech experts view this wave of applications as a milestone for Bangladesh’s digital economy, where nearly 40 per cent of adults remain unbanked. By combining telecom reach, fintech innovation, and inclusive finance, digital banks are expected to revolutionise how low-income populations and small businesses access credit and savings services.

However, analysts also caution that tighter regulatory scrutiny and the new Tk 300 crore capital requirement may limit smaller entrants and consolidate the field among large corporate players and international partners.

If approved, the first new digital banks under this round of licensing could begin pilot operations by late 2026, potentially transforming Bangladesh’s banking sector into a fully digital, inclusion-driven ecosystem.