Bangladesh has taken a major step forward in expanding branchless, technology-driven financial services by granting formal ‘Letters of Intent’ (LoI) to five proposed digital banks.
The decision was approved during a board meeting of the central bank chaired by Bangladesh Bank Governor Md. Mostakur Rahman. The development was officially confirmed to The Daily Star by Bangladesh Bank spokesperson Arif Hossain Khan.
The 5 Approved Digital Banking Entities
Receiving the LoI allows these entities to begin building the necessary technical infrastructure, security protocols, and operational frameworks required for online banking:
DK Digital Bank Limited: Financed through foreign investment by Bhutan’s DK Bank.
bKash Digital Bank: Promoted by bKash, Bangladesh’s leading mobile financial service provider.
Nova Digital Bank: An initiative backed by telecom operator Banglalink.
Boost Digital Bank: Proposed by telecom operator Robi Axiata.
Kori Digital Bank: Founded by Habibullah N. Karim, Chief Executive of Technohaven.
The central bank emphasized that issuing a Letter of Intent does not constitute a final banking license. Rather, it sets out the prerequisite regulatory, infrastructural, and compliance standards each applicant must fulfill before receiving operational clearance.
Paid-Up Capital: In accordance with Bangladesh Bank guidelines issued on June 14, 2023, each digital bank must maintain a minimum paid-up capital of BDT 300 crore.
Branchless Banking Model: These banks will operate entirely without physical customer-facing branches. Operations will be anchored by a single corporate headquarters, with all financial transactions conducted exclusively via mobile applications and web platforms.
