Dhaka:VEON Group is focusing on expanding its digital financial services in Bangladesh, aiming to reach 99 percent of the population that it believes is underserved by traditional banking. This initiative involves the introduction of digital payments and the establishment of a proposed digital bank.
According to Bangladesh Sangbad Sangstha, VEON plans to combine Banglalink's "Mukto Pay" digital payment service with a proposed digital bank in collaboration with Square Group. This strategy is part of a broader digital ecosystem facilitated by a newly introduced application, "Mukto," which is designed to provide a range of services to users regardless of their mobile network.
VEON's CEO, Kaan Terzioglu, emphasized the company's focus on offering financial services to individuals needing access to small loans and safe savings options, instead of competing with traditional banks in serving large enterprises. The digital bank is being developed through a joint venture with Square Group, having received initial approval from Bangladesh Bank last September.
The Mukto Pay service, enabled by Banglalink's Payment Service Provider license obtained in August, supports various digital transactions, including money transfers and bill payments. Additionally, VEON is working to make Mukto Pay accessible nationwide, including through satellite connectivity.
VEON's strategy in Bangladesh aligns with its operations in other countries like Pakistan and Kazakhstan, where it has a significant presence in the digital financial services sector. The company is also looking to invest further in Bangladesh, with plans to mobilize substantial foreign direct investment and potentially list on the country's stock market in the future.