Bangladesh Bank Issues Letters Of Intent To Five Digital Banks: bKash, Banglalink, Robi Among Approved Entities

Dhaka, September 25, 2026 — Bangladesh Bank (BB) today issued letters of intent (LoIs) to five proposed digital banks, allowing them to begin preparations for launching fully online banking operations. The approval came at a meeting of the central bank's board of directors, chaired by Governor Md Mostaqur Rahman.

🏦 The approval marks a major milestone in Bangladesh's banking sector modernisation — bringing digital-only banks closer to operational launch after more than three years of regulatory preparation.

💼 The Five Approved Digital Banks

The five entities receiving Letters of Intent are:

• 🇧🇹 DK Digital Bank Ltd — backed by Bhutan's DK Bank (a notable cross-border entry).
• 📱 bKash Digital Bank — promoted by bKash, Bangladesh's largest mobile financial services (MFS) provider with over 70 million registered users.
• 📱 Nova Digital Bank — a venture of Banglalink, Bangladesh's third-largest mobile operator.
• 📱 Boost Digital Bank — promoted by Robi Axiata, Bangladesh's second-largest mobile operator.
• 💼 Kori Digital Bank — founded by Habibullah N Karim, who is also the CEO of Technohaven.

💬 BB Spokesperson's Confirmation

Arief Hossain Khan, spokesperson for Bangladesh Bank, confirmed the development to The Daily Star.

A letter of intent is not a final licence. It sets the terms and conditions an applicant must meet, such as building its infrastructure, before it can start operations. The LoI stage typically requires:

• 💻 Building technology infrastructure — core banking system, mobile apps, cybersecurity.
• 💻 Corporate governance arrangements — board composition, risk management, audit.
• 💻 Compliance framework — AML/CFT, KYC, customer protection.
• 💻 Capital arrangement — minimum paid-up capital.

💰 Tk 300 Crore Minimum Capital Requirement

Under a BB policy issued on June 14, 2023, each digital bank must have at least Tk 300 crore in paid-up capital. This requirement ensures that digital banks have sufficient capital base to absorb initial losses and maintain financial stability during their early years of operation.

💻 What Is A Digital Bank?

Digital banks conduct all banking activities online through a website or mobile app, and each has only a headquarters, with no branches. Globally, digital banks have disrupted traditional banking by offering:

• 💻 Lower operating costs — no branch network overhead.
• 💻 Higher deposit rates — passed on to customers from cost savings.
• 💻 Lower lending rates — through more efficient credit assessment.
• 💻 24/7 service availability — through mobile apps.
• 💻 Greater financial inclusion — reaching unbanked populations in remote areas.

📜 Historical Context: The LoI Timeline

• 📅 October 2023 (Round 1): The central bank granted LoIs to Nagad Digital Bank and Kori Digital Bank after 52 companies had applied. Nagad's licensing was later put under review.
• 📅 September-November 2025 (Round 2): A second round drew applications from 12 entities, submitted by the November 2, 2025 deadline. Applicants included:
• 📱 Mobile financial service providers
• 📱 Telecom operators
• 🏦 Commercial banks
• 🏢 Large conglomerates
• 🌏 Several had foreign partners
• 📅 September 24, 2026: BB board approves LoIs for five entities — including Kori Digital Bank (re-approval after the initial LoI).

🌏 BB's Strategic Aim

The central bank says its aim is to:

• 👥 Deliver affordable banking to small entrepreneurs and underserved communities.
• 💲 Support a cashless society — reducing reliance on physical cash transactions.
• 💲 Increase financial inclusion — particularly in rural areas where traditional bank branches are sparse.
• 💲 Promote digital payment adoption — building on Bangladesh's MFS ecosystem.

📱 Why Telecom-MFS Combinations Are Strategic

Three of the five approved digital banks have telecom or MFS sponsors — bKash, Banglalink, and Robi. This is strategically significant because:

• 📱 Existing customer base — telecom operators have millions of existing customers who can be cross-sold banking services.
• 📱 Distribution network — MFS providers like bKash have extensive agent networks that can support cash-in/cash-out services for digital banks.
• 📱 Data analytics capability — telecom operators have rich customer data that can support credit assessment and product design.
• 📱 Digital infrastructure — existing app ecosystems, payment gateways, and customer service platforms.

🏢 Bangladesh's Banking Sector Context

Bangladesh's banking sector currently comprises:

• 🏦 61 scheduled banks — including 6 state-owned commercial banks, 3 state-owned specialised banks, 42 private commercial banks, and 10 foreign banks.
• 🏦 35 non-bank financial institutions (NBFIs)
• 🏦 ~11,000 bank branches across the country
• 🏦 Over 100 million MFS users

The addition of five digital banks will not significantly increase the total number of banking entities, but it will introduce a new competitive dynamic — particularly in retail banking, where traditional banks have been slow to digitise.

💼 Implications For Traditional Banks

The entry of digital banks — particularly those backed by bKash, Robi, and Banglalink — is expected to intensify competition in several areas:

• 💰 Retail deposits — digital banks are likely to offer higher deposit rates to attract customers.
• 💰 Small-ticket lending — using alternative data for credit assessment.
• 💰 Payment services — integrating with MFS and card networks.
• 💰 Remittance services — leveraging digital channels for inward remittance distribution.
• 💰 Microfinance-adjacent services — reaching underserved customer segments.

Traditional banks will need to accelerate their own digital transformation to remain competitive — particularly in retail banking, where customer experience has often lagged behind digital-native alternatives.

🏛 Regulatory Framework

Bangladesh Bank has been developing the regulatory framework for digital banks since 2023. Key elements include:

• 📜 Minimum capital requirements — Tk 300 crore paid-up capital.
• 📜 Capital adequacy ratio — digital banks must maintain the same CAR as traditional banks.
• 📜 Liquidity requirements — including liquidity coverage ratio (LCR) and net stable funding ratio (NSFR).
• 📜 Cybersecurity standards — enhanced requirements given the digital-only nature of operations.
• 📜 Customer protection — specific rules for digital onboarding, complaint handling, and dispute resolution.

📜 What Happens Next?

After receiving the letters of intent, the five digital banks will need to:

• 📝 Complete remaining formalities — including final capital arrangements and corporate governance structures.
• 📝 Obtain final banking licences — from Bangladesh Bank after satisfying all regulatory requirements.
• 📝 Build technology infrastructure — including mobile apps, core banking systems, and cybersecurity frameworks.
• 📝 Hire and train staff — particularly in technology, risk management, and compliance functions.
• 📝 Launch customer acquisition — through digital marketing and partnerships with their telecom/MFS parent companies.

Industry observers expect the five digital banks to commence operations within the next 6-12 months, with some launching as early as Q1 2027.

🌏 International Context

Bangladesh's entry into digital banking comes relatively late compared to regional peers:

• 🇵🇭 Philippines — has multiple digital banks including Maya Bank, GoTyme, and UnionDigital.
• 🇵🇰 Pakistan — has launched several digital banks including Mobilink Microfinance Bank and Nayapay.
• 🇮🇳 India — has digital banks and payment banks including Paytm Payments Bank, Airtel Payments Bank, and India Post Payments Bank.
• 🇹🇭 Thailand — has Lightnet and other digital banking initiatives.

Bangladesh's digital banking initiative draws on lessons from these international experiences — particularly the importance of strong cybersecurity, customer protection, and sustainable business models.

💼 Wider Economic Implications

For Bangladesh's broader economy, the entry of digital banks has the potential to:

• 💰 Deepen financial inclusion — reaching underserved rural populations.
• 💰 Reduce the cost of financial services — through digital efficiency.
• 💰 Support SME lending — using alternative data for credit assessment.
• 💰 Improve remittance distribution — particularly for the US$8 billion annual remittance inflow.
• 💰 Stimulate fintech ecosystem — creating opportunities for technology vendors and startups.

The approval of these five digital banks is therefore a significant development for Bangladesh's financial sector — and one that will be closely watched by traditional banks, fintech players, and the broader investment community in the coming months.