The University of Liberal Arts Bangladesh’s (ULAB) Center for Enterprise and Society (CES) and Digital Finance Forum Bangladesh (DFFB), in collaboration with the Singapore-based think tank Global Fintech Institute (GFI) and Global Impact FinTech (GIFT), recently organized a webinar on digital banks.
This webinar titled “Digital Bank in Bangladesh: Opportunities & Challenges” was held on Friday and featured distinguished guest speakers, said a press release issued on Monday.
The speakers were Rahel Ahmed, MD & CEO (Proposed), Kori Digital Bank; Shyamol Das, chief digital officer, Nagad Ltd; Sajid Rahman, chairman, Digital Bank Plc; and Gazi Yar Mohammed, director, KubeMoney, UK, Co-Founder & CEO, Dana.
The veteran banking experts shared their insights on the prospects and forthcoming challenges of digital banking in Bangladesh during the webinar.
Digital banks, known by various names worldwide, such as mobile banking, online banking, neo banking, open banking, challenger banking, and digital banking units, have gained widespread attention in Bangladesh, particularly following the recent issuance of digital bank licenses by Bangladesh Bank.
In early 2021, Bangladesh Bank established a committee to craft policies for the introduction of digital banks, engaging in extensive research that drew insights from global digital banking practices.
This exploration specifically focused on countries such as Malaysia, Singapore, Hong Kong, the Philippines, Pakistan, India, and Mauritius.
Subsequently, Bangladesh Bank approved digital bank guidelines, initiating a call for applications in June 2023. In response to this development, the central bank received 52 applications, leading to the issuance of two new licenses as a test case to gauge the potential of digital banking in Bangladesh's fintech landscape.
This strategic move marks a pivotal moment for Bangladesh, introducing a distinctive digital banking structure that operates beyond the confines of the traditional brick-and-mortar model, reads the press release.
To comprehend the market realities and the launch of digital bank in the Bangladeshi landscape, it is imperative to know how these players are orchestrating their market entry and anticipate the challenges they may encounter.
Against this backdrop, the webinar was hosted to gain firsthand insights from the digital bank players. Moderated by Md Ashraful Alam, CDFP, advisor, DFFB, executive director, Bangladesh Bank, the event featured a keynote presentation on the Digital Bank industry by Gazi Yar Mohammed.
Additionally, it included a live discussion among guest speakers, delving into topics such as the opportunities and differentiation of digital banks from their traditional counterparts, challenges in financial inclusion, the digital divide between urban and rural society, and collaborative opportunities between digital banks and fintech startups.
Rahel Ahmed provided insights on leveraging digital banks to address financial inclusion challenges in rural areas of Bangladesh. He also offered solutions for overcoming the digital divide in facilitating potential clients' access to services.
Shyamol Das elaborated on collaborative opportunities between digital banks and fintech startups, while Sajid Rahman discussed challenges for digital banks in Bangladesh and proposed solutions for stakeholders.
In addition to the keynote presentation, Gazi Yar Mohammed highlighted strategies for digital banks in terms of business models and technology.
He also shed light on critical success factors and potential pitfalls for digital banks globally.
Md Ashraful Alam, CDFP, shared insights on the convergence of traditional banks to the digital mode and the competitive landscape for the proposed digital-only banks.