TAG Innovation, the first digital bank in Pakistan, is set to start offering financial services this month.
The fintech start-up will begin operations will a limited number of customers, reported Bloomberg.
In an interview with the publication, TAG Innovation CEO Talal Gondal said that the fintech expects to begin commercial services in two to three months after getting necessary approval from the central bank of the country.
Notably, Pakistan has one of the largest underbanked population in the world. Around 70% of the adults in the country do not have a bank account.
The fintech has also raised around $5.5m in pre-seed funding. The round was led by Quiet Capital Management, Liberty City Ventures and Fatima Gobi Ventures.
The company also received investments from Andreessen Horowitz, Khosla Ventures, Canaan Partners and Mercury’s Immad Akhund, Bloomberg added.
TAG already has a provisional electronic money institution licence enabling it to offer some basic banking services.
After securing the licence, the fintech plans to roll out digital onboarding. This will enable customers to open accounts swiftly with a selfie and a copy of their national identification card.
Last month, Pakistan’s Habib Bank Limited (HBL) became the first bank in the country to invest in a digital fintech startup. The lender made an investment in Finja, which caters to micro, small and medium sized enterprises.