Veon, Square Group secure Bangladesh digital bank licence

Details: Manny Pham; Category: Mobile Finance; 29 September 2026; 2010 views

Veon and Bangladeshi conglomerate Square Group have received approval from Bangladesh Bank for a digital bank licence, expanding Veon’s digital financial services operations in the country.

The joint venture between Veon Digital Financial Group and Square Group will build on Banglalink's existing Payment Service Provider (PSP) licence, which supports its Mukto Pay digital payments service.

The new digital bank is expected to integrate with Banglalink's mobile network and distribution channels, providing banking and financial services to customers who have limited access to conventional banking.

Veon said the licence forms part of its wider "Invest in Bangladesh NOW!" initiative, launched with the Bangladeshi government during the UN General Assembly High-Level Week. The operator has committed an initial US$250 million investment under a wider ambition to mobilise US$1 billion in foreign direct investment for Bangladesh across connectivity, digital infrastructure, financial services and AI.

The partnership combines Veon’s digital financial services and technology capabilities with Square Group's domestic retail, distribution and manufacturing network.

Veon Digital Financial Group had 59 million active financial services customers across Pakistan, Kazakhstan and Uzbekistan at the end of Q2 2026. Bangladesh will become its fourth market for digital financial services.

Veon Group CEO Kaan Terzioglu said the approval would support efforts to bring more of Bangladesh's unbanked population into the formal financial system.

Banglalink CEO Johan Buse said the combination of the operator's nationwide telecommunications network and digital financial services would allow the new bank to target customers without access to conventional banking.

The joint venture has yet to launch the digital bank, with further regulatory and operational steps required before services can begin.