VEON is folding digital banking into its ambition to mobilise $1 billion in foreign direct investment for Bangladesh, with its new venture with Square Group planning to combine Banglalink’s mobile ecosystem with Square’s manufacturing, distribution and retail networks to reach customers beyond conventional banking.
The strategy gained ground after Bangladesh Bank approved a digital bank licence for the joint venture between VEON Digital Financial Group and Square Group, according to a press release.
The approval gives VEON a route into full-scale digital banking in Bangladesh, building on Banglalink’s existing Payment Service Provider (PSP) licence, which underpins its Mukto Pay digital payments service.
VEON has committed an initial $250 million anchor investment towards its ambition of mobilising $1 billion in foreign direct investment for Bangladesh, targeting connectivity, digital infrastructure, digital financial services and artificial intelligence.
The new bank is expected to integrate closely with Banglalink’s mobile ecosystem and offer end-to-end financial services to mobile users across the country.
VEON said the combination of its technology expertise and Square’s domestic network is intended to extend banking services to communities outside the reach of conventional financial institutions.
The digital bank is part of VEON’s broader “Invest in Bangladesh NOW!” framework, a public-private partnership with the Bangladesh government that the company formally launched in New York during the United Nations General Assembly High-Level Week.
“Financial inclusion is key to eradicating poverty, and today’s approval marks an important step toward that goal in Bangladesh,” VEON Group Chief Executive Officer Kaan Terzioglu said.
“We’re grateful to Bangladesh Bank and the Government of Bangladesh for their continued support in building the digital financial infrastructure the country needs.
Together with Square Group, a trusted and well-established partner, this brings us closer to our commitment to bringing more of Bangladesh’s unbanked population into the formal financial services system.”
Square Group Managing Director Tapan Chowdhury said the approval came on the 101st birthday of Square founder Samson H Chowdhury.
“VEON brings the right technological expertise and global experience, while Square Group is a trusted name built over the last 68 years. We hope that the people of this country will benefit from the services of this digital bank once it goes into operation,” Chowdhury said.
For Banglalink, a fully owned subsidiary of VEON, the venture creates a link between its telecommunications network, distribution system and an expanding financial-services operation.
“With our Mukto Pay already in place and a digital banking license now awarded, we are well positioned to serve all Bangladeshis, especially those who have lacked access to conventional banking,” Banglalink Chief Executive Officer Johan Buse said.
“Combining Banglalink’s nationwide telecommunications network and distribution with digital financial services enables the new digital bank to ensure financial inclusion for the people of Bangladesh.”
VEON already has a sizeable digital finance business outside Bangladesh. VEON Digital Financial Group served 59 million active financial-services customers across Pakistan, Kazakhstan and Uzbekistan as of the second quarter of 2026.
Bangladesh is now set to join that footprint following the regulatory approval, complementing VEON’s recent regulatory and commercial developments in Kazakhstan as it expands digital financial-services ecosystems across its markets.
VEON provides connectivity and digital services to more than 150 million connectivity customers and over 227 million digital users across five countries that account for more than 6 per cent of the world’s population. The Dubai-headquartered company is listed on Nasdaq.
Square Group, founded in 1958, operates across pharmaceuticals, textiles and garments, toiletries, food and beverages, healthcare, information technology and other sectors. Its flagship business is Square Pharmaceuticals, while the group also operates in international markets.
Banglalink, a wholly owned VEON subsidiary, operates digital services including the MyBL super app, entertainment platform Toffee and RYZE, an artificial intelligence-powered digital lifestyle brand for young users.
