Nagad Digital Bank aims to increase access to the unbanked and underbanked

“We will operate without physical branches, with only a head office and a call center for customer support. Our services will be provided through our website and mobile app, which will enable financial transactions similar to a traditional bank branch,” Nagad MD said.

Mashuk explained that customers will be able to perform many of the same services offered in physical branches, such as opening accounts, checking balances, transferring funds, paying bills, applying for loans and more.

“To meet the financial needs of individuals and small businesses, we will provide digital loans. This will disrupt our financial industry,” he highlighted. By leveraging data on customer transactions and financial behaviour, Nagad Digital Bank will offer personalized credit solutions, making borrowing more accessible, he said.

The digital bank plans to offer single-digit, collateral-free loans to small informal businesses and farmers, who are currently dependent on moneylenders charging exorbitant interest rates. “To assess credit worthiness, we have developed an AI-based credit rating system. The system evaluates the transaction data of the loan seeker using his/her National ID (NID) and mobile number, to disburse the loan instantly. Everything will be done using Nagad’s app, eliminating paperwork and the need to visit bank branches. This will bring money from the informal sector into the formal channel,” Mashuk said.

Spread the love

We may earn a commission if you click on the links within this article. Learn more.