Robi aims to boost digital banking, financial inclusion in Bangladesh

Robi Axiata Limited is taking major steps to expand Bangladesh's digital financial ecosystem, said Ziad Shatara, the company's newly appointed CEO, today.

Shatara said Robi plans to leverage its partnership with Malaysian digital bank 'Boost' to offer accessible, low-cost, and tailored banking solutions to underserved communities.

"Our goal is to simplify banking while reaching different segments of the population, offering products that are both affordable and widely accessible," he told The Daily Star on the sidelines of his first press meeting since becoming CEO in November.

Robi has applied for a digital bank licence in Bangladesh under the name 'Boost-ROBI', joining other major players like bKash and Banglalink in the competition for one of the limited central bank licences.

Shatara said the company aims to serve citizens outside the formal banking system and promote broader financial inclusion.

"Digital banking is not just about technology; it's about strengthening relationships with our customers. By combining our extensive customer base with Boost's digital banking expertise, we aim to transform the banking industry in Bangladesh," he added.

He also reaffirmed Robi's commitment to compliance and responsible business practices.

"We operate in a balanced environment and will continue to conduct business according to the country's laws and regulations. This is fundamental to our operations, and we are dedicated to serving citizens to the best of our ability," Shatara said.

Highlighting Robi's environmental, social, and governance (ESG) initiatives, he said citizen well-being remains a central focus of the company's operations.

On competition in the telecom sector, Shatara acknowledged challenges but stressed collaboration over litigation.

"We work with industry players to reach agreements outside the courts whenever possible. When necessary, we seek legal opinions, but this is about protecting our rights, not engaging in legal battles," he said.

Addressing market dominance concerns, he said regulators play a key role in maintaining a level playing field.

"While the market currently favours one operator, our focus remains on expanding our reach and providing the best possible services to our customers," Shatara added.

He also raised concerns over an unstable investment environment and regulatory inconsistencies in Bangladesh, saying such conditions send negative signals to both local and foreign investors. Robi invests around 25-30 percent of its total revenue annually in direct capital expenditure, a rare level of sustained investment.

Shatara suggested postponing the upcoming 700 MHz spectrum auction until after the general election, citing the current political and economic climate as unsuitable for such a major investment. While Robi has alternative options for capacity expansion, the timing is not ideal for this spectrum acquisition.

Criticising the new telecom licensing policy, Shatara said it was implemented without reviewing the 2018 telecom policy and has created "inconsistencies and uncertainty." Short-term changes, including the mandatory transfer of 15 percent of shares to local entities, have hurt investor confidence.

Operationally, Robi faces challenges in improving service quality due to difficulties in securing tower sites. Despite tower-sharing policies, tower companies often delay new builds unless they fit their business models, slowing network expansion. Last year, the company completed only slightly more than half of its planned tower deployments because of land issues and bureaucratic hurdles, Shatara added.