The City Bank has unveiled its ambitious plan to establish a digital bank, with an investment of Tk27.78 crore. This strategic move follows the bank’s participation in a joint venture consortium, spearheaded by fin-tech and other firms, aimed at revolutionizing the digital banking landscape in Bangladesh. With Bank Asia as a key sponsor, holding an 11.12% stake, the consortium has formally applied for a digital banking license from the Bangladesh Bank. This groundbreaking initiative capitalizes on the combined strengths of nine technologically advanced banks, boasting an impressive customer base of nearly five crore.
In response to the Bangladesh Bank’s call for digital banking license applications, the City Bank and its consortium partners have taken swift action. The central bank’s guidelines mandate a minimum paid-up capital of Tk125 crore for prospective digital banks, sourced from sponsors, with each sponsor holding no less than Tk50 lakh in shares. While various entities, including Bank Asia, bKash, Nagad, Banglalink, Brac Bank, and others, express keen interest in setting up digital banks, the City Bank’s decisive move underscores the momentum building within the sector. With an emphasis on technological innovation, the consortium aims to provide services such as virtual cards and QR codes for seamless customer transactions.
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