Nagad pivots towards meeting all your banking needs

Nagad, the country's leading mobile financial service provider, is on the cusp of setting up the much-hyped digital bank, promising to redefine convenience and accessibility in financial services.

With all necessary preparations already done, the MFS operator is now waiting for the licence from the Bangladesh Bank before it starts full-fledged digital banking, offering customers a wide array of features and services that will transform the way they manage their finances.

Since its foray into the financial industry, Nagad has been at the forefront of digital financial innovations as it has shown that MFS is not a mere money transfer tool, rather it can do more as a platform of diversified services, such as utility bill payments, merchant pay, EMI payment, online purchases and others, thus bringing convenience and affordability to people's financial needs.

Once this state-owned MFS launches the digital bank, it will provide a more comprehensive range of financial services, making banking more accessible and easier for millions of people, especially those living in remote areas.

In Nagad's digital bank, customers will perform many of the same services that they would in a physical branch, such as opening accounts, checking account balances, transferring money between accounts, paying bills, applying for loans, and more.

One of the primary ways Nagad aims to revolutionise financial services is by introducing digital lending services, thereby addressing the credit needs of individuals and small businesses. By leveraging its extensive data on customer transactions and financial behaviour, Nagad will provide personalised credit offerings, making borrowing more accessible to those who need it.

Talking to FE, Muhammad Zahidul Islam, head of Public Relations at Nagad Ltd., said, "Nagad will shape the future of digital banking in Bangladesh and contribute to the country's overall development."

"We will introduce many new services for our customers so that they can get all they need on a single platform, without going to bank branches," he added.

Under its digital banking platform, Nagad will offer single-digit and collateral-free loans for small informal businesses and farmers who now have to take loans from moneylenders even at 40 per cent interest rate per day, Zahidul Islam pointed out.

To assess one's creditworthiness, Nagad has also developed an AI-based credit rating system that will assess all transactions-related data available on public domains using one's NID and mobile number, he said.

"With the help of AI, we will be able to evaluate a loan seeker's credit rating and disburse the money instantly. All will be done using Nagad's app. Neither do customers have to go through any paperwork nor visit bank branches," he explained.

"In this way, we will put the informal sector's money into the formal channel," he noted.

Experts believe digital banking will make the lives of customers easier by allowing them access to banking services from anywhere at any time. In terms of costs, it is easily understandable that digital banks have lower operating expenses than traditional ones as they do not have physical infrastructure but rely more heavily on technology to provide customers with many services. So, this translates into lower charges and interest rates for customers.

Company insiders say financial inclusion is another key focus for Nagad. With a Digital Bank licence, the company will extend its reach to unbanked and underbanked populations.

Nagad's user-friendly mobile app will act as a gateway to financial services for these marginalized communities, allowing them to save, transact, and invest without the need for a traditional bank account.

Security and trust are paramount in the financial sector, and the state-owned mobile money operator is committed to ensuring the highest standards. Ahead of its digital bank's launch, the company has already enhanced its cybersecurity measures to safeguard users' data and transactions, they assure.

Nagad's digital bank is poised to revolutionise the banking landscape in Bangladesh. By offering a wide range of customer-centric services, fostering financial inclusion, and creating an integrated financial ecosystem, the company will bring banking convenience to the fingertips of millions of people.

With a focus on accessibility, security, and customer support, the MFS operator is set to reshape the way Bangladeshis interact with their finances, making banking more inclusive and convenient than ever before.