Nagad Finance PLC has received a license from Bangladesh Bank to operate as a non-bank financial institution (NBFI) in the country. Nagad Ltd, which currently operates the mobile financial service (MFS) window of the Bangladesh Post Office, plans to launch an MFS subsidiary under the new NBFI. The MFS will be owned 51% by Nagad Finance and 49% by the existing directors of Nagad Ltd.
Nagad Finance will need prior approval from the Bangladesh Bank to launch the MFS. The new NBFI will begin operating on July 1 2023 and plans to mobilize deposits from underprivileged people by offering various savings schemes and disbursing loans to low-income groups at a single-digit interest rate. The move is expected to encourage savings habits among the masses and provide access to finance for underprivileged communities. Business professionals can keep an eye on the progress of Nagad Finance to identify potential investment opportunities in Bangladesh’s financial sector.