Japan Remit Finance and DBL Group Apply for a Digital Banking Licence in Bangladesh
Japan Remit Finance (JRF) and DBL Group have submitted an application to Bangladesh’s central bank for a digital banking licence, with an aim to establish the Japan Bangla Digital Bank. The proposed digital banking initiative has already received initial approval from the central bank in 2023 and is currently awaiting a Letter of Intent (LOI) to commence formal operations.
Addressing Financial Inclusion with Technology
The new bank aims to leverage technology to deliver financial services to underserved and unbanked populations in Bangladesh. JRF offers international money transfer and prepaid payment services to over one million registered customers in countries including Japan, Bangladesh, Malaysia, Korea, the Philippines, Vietnam, and Canada.
Additionally, the banking service provides API links to over 100 banks, payment service providers, and mobile financial service operators across Asia, North America, and Europe. The key player in this project will be JRF Global Capital Investments, with expected support from SBI Group, which owns seven banks in Japan.
Experience in Fintech Services
Since 2011, JRF has been offering wallet-based services, prepaid cards, and web- and mobile-based remittance services in Japan. The services account for an annual remittance volume of over $550m. The existing fintech infrastructure of JRF is expected to provide the proposed digital bank with immediate access to proven technology, cross-border regulatory experience, and a large remittance customer base.
About DBL Group
The primary local partner in this venture, DBL Group, has an annual turnover of more than $1bn and employs over 50,000 individuals. DBL Group has over 30 associated companies across various sectors such as textiles, ceramics, telecommunications, pharmaceuticals, and digital solutions. The company also maintains relationships with the International Finance Corporation, DEG, the Asian Development Bank, and British International Investment.
Regulatory Framework for Digital Banks
The application for the banking licence was filed under the regulatory framework for digital banks in Bangladesh. The next regulatory step before the formal approval of the licence and operational launch would be the issuance of a Letter of Intent by the central bank of Bangladesh. This endeavour is a significant step towards addressing financial inclusion and bridging the gap between traditional banking methods and digital financial services.
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