Bangladesh is moving closer to introducing a new wave of branchless banking. Eight entities have been shortlisted from a pool of applicants seeking licences to operate digital banks, marking a significant step in the central bank’s push to modernise the financial sector.
Unlike traditional commercial lenders, these institutions will operate entirely without physical branches, sub-branches, or proprietary automated teller machines. Customers will instead manage their finances through mobile applications and digital platforms. The service model covers everything from remote account opening and deposit management to digital loan applications, virtual payment cards, and QR code transactions.
Industry stakeholders note that this digital shift aims to reduce operational overheads while expanding financial inclusion. Rural populations, young entrepreneurs, micro-traders, and unbanked communities stand to benefit most from streamlined, technology-driven access.
The second wave of licence applicants features a diverse array of corporate consortia and financial initiatives. Notable contenders include Axiata’s ‘Boost’, a joint venture between Banglalink and Square named ‘Nova Digital Bank’, Akij Resource’s ‘Munafa Islamic Digital Bank’, and ASA’s ‘Moitree Digital Bank’. Other applicants comprise ‘Amar Digital Bank-22′, ’36 Digital Bank’, ‘British-Bangla Digital Bank’, Bhutan’s DK Bank venture ‘Digital Banking of Bhutan’, App Bank, Japan Bangla Digital Bank, ‘Upokarhi Digital Bank’, and bKash Digital Bank. While the central bank has not yet publicly disclosed the specific eight institutions cleared for the final shortlist, evaluation is complete.
Arfan Ali, former managing director of Bank Asia, explains that the entry of digital-first lenders will foster a competitive environment that compels traditional banks to upgrade their technological infrastructure and business models. At the same time, experts caution that robust investments in cybersecurity, stringent data protection frameworks, and enhanced customer awareness will be essential to mitigating risks in an evolving digital landscape.
Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan confirmed that the evaluation of the second-phase applications has reached its final stage. The formal proposal for licensing the selected institutions will be presented at the upcoming board meeting for final approval.
