Pathao, Bangladesh’s largest digital services company, is awaiting a central bank license to set up a digital bank, a press release said.
The proposed Pathao Digital Bank is a natural progression of the company’s mission to improve the lives of its 10 million young consumers and 500,000 drivers, delivery agents and SME entrepreneurs in Bangladesh by harnessing the power of technology.
Bangladesh has an entire generation of young, mobile and digital natives, most of whom are already dedicated users of Pathao. Unfortunately, the needs of this sector have not been addressed by the local financial sector. They qualify for and need the loan, yet they face disproportionately high barriers to entry as traditional banks and financial institutions assess the creditworthiness of these consumers and technology-enabled asset-light small businesses. There is a lack of data and technical capabilities to distribute, the press release said.