Nagad Digital Bank PLC, which recently got a licence from Bangladesh Bank, is poised to make banking accessible to millions of underserved individuals, particularly in rural and remote areas.
Thus, once it comes into operation, the country’s first full-fledged digital bank will empower millions of marginalised people, driving economic growth and reducing poverty across the country.
“We are excited about the future and the positive impact Nagad Digital Bank will have on the lives of so many Bangladeshis,” said Muhammad Zahidul Islam, the vice president and head of Media and Communications at Nagad Ltd.
Nagad as an MFS provider has already expanded its customer-centric services to people all over the country at very affordable costs. From mobile recharge to money transfer to bill payments to online shopping, all services that customers are now enjoying are on Nagad’s MFS platform.
What Nagad Digital Bank will bring is complete financial freedom for low- and middle-income people. In digital banking, they will be able to secure micro and nano loans instantly at single-digit interest rates without collateral whenever they need it.
Besides, they can deposit any amount, no matter how low it is. The savings tenure will be super flexible, allowing savers an option to make partial encashment instantly through their mobile phones, according to sources at Nagad Ltd.
“Our digital bank will provide secure, affordable, and accessible services and products to everyone, especially those who have been left behind,” the head of Media and Communications at Nagad Ltd also said.
The way Nagad is stepping up with one another products and services in line with the growing and changing needs of its customers – the day is not far off when Bangladesh will turn into a cashless society.
Since its inception in 2019, the state-owned MFS has been doing everything possible to make sure that people get accustomed to a complete digital lifestyle. Over the past few years, several ground-breaking innovations by Nagad have taken place, which greatly influenced the way people manage their finances on a daily basis.
What is more, the company is also coming up with different lucrative campaigns, including some largest ones in the country’s history, leading more and more people to embrace its easy and affordable services.
For example, last year’s BMW mega campaign earned a massive response from people across the country, alongside taking Nagad’s transactions to a record high. During the campaign, customers also grabbed several sedan cars, motorcycles, and many other gifts through Nagad payments.
This year, Nagad has gone a step further as it has now come up with a never-seen-before offer for its customers to win land in Dhaka and many other exciting mega gifts worth Tk 20 crore on transactions using this MFS.
The company has already handed over four plots to four winning groups at Purbachal Probashi Polli’s project site. A total of eight lucky winners will receive plots as gifts.
The MFS market has registered enormous growth, riding on advanced technologies and smartphone penetration. Starting as a money transfer tool, mobile money – led by Nagad’s innovative and diversified services – has now evolved into a platform of different services tailored to people’s needs.
The way non-cash transactions are gradually growing, there will be almost no cash in the near future. Maybe, people will stop cashing out, bringing an end to waiting in front of bank counters.
To keep pace with the ongoing digital transformation, Nagad Digital Bank PLC is now well-equipped with all necessary products and services to commence its operations, thus enhancing user experience even more.
Nagad Digital Bank: A total solution to your financial needs
Nagad Digital Bank will operate in Bangladesh with no branches but only a head office. There will also be a call centre for handling customer issues. It will provide banking services through its website and mobile phone app.
After going into full operation, it will carry out transactions of various amounts like a traditional bank.
Nagad has been well-equipped to launch a digital bank that will be a total solution to all financial needs.
After establishing a digital bank, firstly, Nagad will introduce single-digit and collateral-free loans for small informal businesses who have to resort to Mahajans [moneylenders] even at 40 per cent interest rate per day – with no trade licences and no access to credit in the traditional banking system, Zahidul said.
This way, Nagad will motivate them to come under financial inclusion, thus putting their money into the formal channel, he added.
Easy loans for start-ups, outsourcing firms
Moreover, individuals and businesses, particularly start-ups and outsourcing firms, will get easy loans from Nagad Digital Bank.
Sadat Adnan Ahmad, senior executive vice-president and chief marketing officer (CMO) at Nagad Ltd, said, “We will consider not just physical assets but also transaction history, patterns, and reputation of tech companies that thrive on foreign currency earnings. Such a unique approach to evaluating a company’s creditworthiness will set Nagad Digital Bank apart.”
To help such entities thrive further and get a bigger chunk of the pie in the global tech industry, Nagad wants to recognise the inherent value of digital properties and intangible assets, which are often overlooked by traditional banks.
The Nagad CMO noted, “To assess one’s creditworthiness, we have created an AI-based credit rating system that will analyse all transactions-related data available on public domains using one’s NID and mobile number. In this way, the system will determine if giving a loan to a particular individual is safe or not.”
In digital banking, lead time for loan processing and approval will also see a significant fall, allowing businesses to access funding more quickly and efficiently, he pointed out.
Low-cost loans for SMEs
Nagad Digital Bank will launch loan products according to the needs of small businesses. Such lending promises customer acquisition at a low cost, minimal operational costs and a low default rate, unlike traditional lending by banks.
“Thus, we can increase credit flows to the SME sector, which will increase employment, and productivity and thus, trigger the country’s economic growth, apart from positively impacting the livelihoods of many people,” said the Nagad CMO.
The advent of digital banks is a game-changer for all businesses alike, such as technology-focused start-ups, outsourcing firms, and other businesses. With digital banking gaining traction, the country can expect more tech enterprises to flourish and contribute to its economy.
