Japan Remit Finance (JRF) and DBL Group have filed an application with Bangladesh’s central bank for a digital banking licence to form Japan Bangla Digital Bank. 

The proposed bank received initial approval from the central bank in 2023 and now awaits a letter of intent (LOI) from Bangladesh Bank to begin formal operations. 

This new bank will deliver technology-driven financial services aimed at underserved and unbanked populations in Bangladesh. 

JRF offers international money transfer and prepaid payment services to more than one million registered customers in Japan, Bangladesh, Malaysia, Korea, the Philippines, Vietnam and Canada. 

The bank also provides API links to over 100 banks, payment service providers and mobile financial service operators across Asia, North America and Europe. 

JRF Global Capital Investments will play a key role in the project, with support expected from SBI Group, which owns seven banks in Japan. 

Since 2011, JRF has offered wallet-based services, prepaid cards and web- and mobile-based remittance services in Japan, with an annual remittance volume of over $550m.  

Its existing fintech infrastructure is expected to provide the proposed digital bank with immediate access to proven technology, cross-border regulatory experience and a large remittance customer base. 

DBL Group, the primary local partner, has made an annual turnover of more than $1bn. Its workforce exceeds 50,000. 

The company has more than 30 associated companies in sectors such as textiles, ceramics, telecommunications, pharmaceuticals and digital solutions. 

Also, it has relationships with the International Finance Corporation, DEG, the Asian Development Bank and British International Investment. 

The application for a banking licence was submitted under Bangladesh’s framework for digital banks. 

Bangladesh central bank’s issuance of a letter of intent would be the next regulatory step before formal licence approval and operational launch.