TAG Innovation is set to be first digital bank in Pakistan launching its activities as soon as this month.
The bank is the first of its kind in the fifth most populous country in the world.
The launch of the digital bank comes at a time when nearly 70% of the adult population of Pakistan does not have a bank account.
Talal Gondal, CEO of the bank, said that the company will start providing its digital banking services to a limited number of customers during this month.
First digital bank
Gondal explained that the bank’s banking services activity will start on a commercial scale within two or three months, as it aims to attract millions of customers over the next few years.
The startup succeeded in raising $5.5 million in pre-financing this year to become one of the most emerging companies in the Middle East, Africa, and Pakistan this year.
This funding was co-sponsored 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 said.
Bloomberg indicated that TAG joined the wave of emerging companies in the field of digital payment services, in light of the revival of the activity of digital banks in emerging markets that suffer from a small number of traditional bank branches.
The digital bank facilitates obtaining banking services procedures.
One of many digital banks is the German N26 bank. The banks allows opening the account by filling in information via the N26 website. After that the N26 mobile application is downloaded and identity verification is done online by the mobile application.
The Berlin-based N26 bank, with a financial value of $3.5 billion, attracts 3.5 million clients, and $470 million in project financing, such as entrepreneur Peter Thiel and Hong Kong giants such as Ka Shing.
established in 2013, N26 obtained a license to operate as a bank in 2016. It has been able to expand and prosper quickly through many of the advantages it tries to provide to customers.
One of the most important advantages of the N26 is that all online purchases abroad are free of charge, regardless of the currency, and there are no fees for credit cards in most ATM operations.