VEON eyes $1b Bangladesh investment through digital finance push

Global digital operator VEON has committed an initial US$ 250 million anchor investment towards its ambition of mobilising US$ 1 billion in foreign direct investment for Bangladesh, with a joint venture with Square Group set to establish a digital bank as part of the broader investment plan.

The planned investment is being pursued under VEON's "Invest in Bangladesh NOW" framework, a public-private partnership with the Government of Bangladesh that the company formally launched in New York during UN General Assembly High-Level Week, according to a statement of the company.

The joint venture between VEON Digital Financial Group and local conglomerate Square Group has received approval from Bangladesh Bank for a Digital Bank licence, marking VEON's entry into full-scale digital banking in Bangladesh.
 
The initiative builds on Banglalink's existing Payment Service Provider (PSP) licence, which underpins its  Mukto Pay  digital payments service.

VEON said its investment ambition covers connectivity, digital infrastructure, digital financial services and artificial intelligence, with the new digital bank expected to integrate closely with Banglalink's mobile ecosystem and extend end-to-end financial services to mobile users across the country.

The venture will combine VEON's global technology expertise with Square Group's domestic manufacturing, distribution and retail networks, with the aim of bringing modern banking services to communities that remain outside the reach of conventional financial services.

"Financial inclusion is key to eradicating poverty, and the approval marks an important step toward that goal in Bangladesh," said Group Chief Executive Officer of VEON KaanTerzioglu.

He said the company was committed to bringing more of Bangladesh's unbanked population into the formal financial services system and thanked Bangladesh Bank and the Government of Bangladesh for its support in building the country's digital financial infrastructure.�"BSS