In collaboration with Bangladeshi partners, a consortium of Chinese nationals has applied for a digital banking license in Bangladesh under the name China Bangla Bank Plc.
This move is part of broader efforts to enhance financial inclusion and leverage digital technologies in Bangladesh’s banking sector.
The consortium has invested approximately $10 million, with plans to inject a further $200 million over the next five years.
According to documents from the Chinese Embassy in Dhaka, this venture is expected to generate over 7,000 jobs within Bangladesh. This substantial financial commitment aims to establish a robust digital banking infrastructure that could potentially serve millions of underserved individuals in the country.
The infusion of Chinese technical expertise and technology is anticipated to enhance financial inclusion for marginalized communities indirectly. The bank’s objective is to extend banking services to over 75 million underserved individuals, thus aligning with broader goals of economic development and financial accessibility.
The China Council for the Promotion of International Trade Guangdong Committee (CCPIT Guangdong Committee) has actively engaged with the Economic and Commercial Office of the Chinese Embassy in Bangladesh to facilitate communication with relevant Bangladeshi authorities regarding the application process.
A high-powered delegation from the Bangladesh Bank had previously visited China, where discussions on the potential for digital banking operations by Chinese entrepreneurs took place.
Al Mamun Mridha, Secretary General of the Bangladesh China Chamber of Commerce and Industry, emphasized the significant strides Bangladesh has made in digital adoption.
The Bangladesh Bank has already granted initial approval to eight digital banks as part of its efforts to meet customers’ evolving needs in the digital age and serve the unbanked population. Unlike traditional banks, these digital banks will operate exclusively online, with no physical branches, relying on central headquarters to manage operations.
Digital banking enables customers to conduct various banking transactions and access services through websites or mobile applications, offering greater flexibility and accessibility. Two digital banks, Nagad Digital Bank PLC and Kori Digital Bank PLC, have received letters of intent (LoI) and are preparing to commence operations soon. The Bangladesh Bank will closely monitor their performance over the next six months.
The LoI outlines a specific timeframe for digital banks to develop their infrastructure under the central bank’s supervision. Three additional banks—Smart Digital Bank PLC, North East Digital Bank PLC, and Japan-Bangladesh Digital Bank PLC—are slated to receive their letters of intent after six months, contingent upon the performance of the initial two digital banks.
