As per a report in Bloomberg, Pakistan is all set to welcome the first digital bank in the country with about $5.5 million in pre-seed funding.
Pakistan’s central bank governor Reza Baqir said that he welcomes the initiative of digital banks including both full-fledged and small banks.
A country where 70% of adults do not hold a bank account, TAG Innovation Pvt is going to start its financial services this month, read Bloomberg report.
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The startup is going to commence with a limited number of customers and will start commercial operations in few months.
Chief Executive Officer (CEO) Talal Gondal said that the startup is aiming to have millions of customers for its digital wallet.
“The company has raised about $5.5 million in pre-seed funding, making it one of five biggest deals in the Middle East, Africa, and Pakistan region, according to data from Crunchbase”, the report said.
Pakistan has the third-largest population with no bank accounts and the potential customers have complaints about the lengthy documentation process.
“In Pakistan, the system is broken”, said Gondal. “Some banks don’t even have a banking app. It’s that bad”, he added.
The company has plans to make the overall process smooth and simple in Pakistan while the customers will require just a copy of their computerized national identification card (CNIC) and a selfie to access the digital bank account.
The report also said that the account will be working in just 3 minutes and the customer will be provided with basic banking services such as cash transfer, online shopping, and a debit card.