VEON Ltd. has announced that its joint venture with Square Group has received approval for a Digital Bank license from Bangladesh Bank, enabling VEON's entry into digital banking in Bangladesh. This initiative is part of VEON's "Invest in Bangladesh NOW!" campaign, which aims to attract $1 billion in foreign investment to enhance the country's digital infrastructure and services.
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The new digital bank will utilize Banglalink's existing payment services to offer accessible banking solutions to underserved populations. VEON is committing an initial investment of $250 million to support this venture, which aims to foster financial inclusion.
Kaan Terzioglu, Group CEO of VEON, expressed gratitude towards Bangladesh Bank and emphasized the goal of bringing modern banking services to the unbanked. Tapan Chowdhury, Managing Director of Square Group, noted the significance of this approval on the birthday of the company's founder, expressing hope that the new services would benefit the people of Bangladesh.
The digital bank is expected to integrate closely with Banglalink's mobile ecosystem, providing end-to-end financial tools to users across the country. VEON Digital Financial Group currently serves 59 million customers in Pakistan, Kazakhstan, and Uzbekistan, and anticipates expanding its footprint into Bangladesh.
Both companies face risks associated with entering a new banking market, and potential concerns about overextension may arise among investors. However, they remain optimistic about the venture's success and its contribution to the economic development of Bangladesh.