AMSTERDAM: VEON Ltd., a global digital operator that provides online services and connectivity, has announced that it has submitted an application for a digital banking license to the Central Bank of Bangladesh, together with its subsidiary Banglalink, a leading mobile operator and digital service provider in the country. The move is part of VEON’s commitment to digital empowerment and financial inclusion in Bangladesh.
Bangladesh is a country with a population of 173 million people, where only 36% of adults have a bank account. The government has launched the Smart Bangladesh strategy to promote digital transformation and economic growth in the country. Digital banking is expected to play a key role in providing access to financial services for the unbanked and underbanked segments of the population, as well as offering convenience, security, and innovation for the existing customers.
Banglalink has a strong presence in the digital space, with more than 42 million subscribers and 7.1 million monthly active users of its MyBL super app, which offers a range of digital services such as health, education, entertainment, ticket booking, and utility bill payment. Banglalink also operates Toffee, the country’s leading entertainment app and OTT platform, which serves approximately 10 million audiences monthly with audio and video streaming services, as well as hosting a user-generated content platform with over 200,000 registered local content creators. In addition, Banglalink has invested significantly in its network quality and coverage, providing high-speed 4G service across the country.
If granted, the digital banking license will enable Banglalink to expand its digital operator offering in Bangladesh, adding digital financial services to its portfolio. Banglalink will leverage VEON’s expertise and experience in this area, as VEON group serves 21.6 million monthly active users of its financial services on mobile platforms across its six markets, including digital lending products in some markets.
Erik Aas, CEO of Banglalink, said: “Digitalization will unlock enormous opportunities for the people of Bangladesh, in line with the Government’s Smart Bangladesh strategy and growth ambition. At Banglalink, we have had the privilege of serving the people of Bangladesh in the earlier stages of this journey, and now we look forward to stepping up to the challenge in digital financial services, leveraging our significant digital know-how and capabilities both at Banglalink’s level and at the Group level.”
Kaan Terzioğlu, Group CEO of VEON, said: “Banglalink’s ambitions for digital banking underscore VEON’s commitment to digital empowerment, which is a core pillar of VEON’s Digital Operator strategy, deployed across all our markets. We have the expertise and the scale to support Banglalink in its drive for innovation, financial inclusion, and digital transformation in Bangladesh. With this important step into financial services, we look forward to support Bangladesh’s growth ambition, building on the great work that the Banglalink team has been doing in transforming people’s lives with their digital services.”
VEON launched its Digital Operator 1440 strategy in 2021 and has been building a full suite of digital applications and services across its six markets, providing locally relevant digital experiences, supporting digital inclusion and local talent development in the digital space. The total number of monthly users of VEON’s operating companies’ digital services amounted to 77.6 million in July 2023, spanning areas including financial services, digital entertainment (TV, music, gaming, and more), digital health, digital learning, business-to-business solutions and industrial applications.
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