Dhaka, Aug. 19 -- Pathao, a leading digital services company in Bangladesh, has applied for a licence to set up a digital bank.

The proposed Pathao Digital Bank will mark a 'natural evolution' of the company's commitment to empowering the lives of its vast user base of 10 million consumers and half a million drivers, delivery agents, and SME entrepreneurs, it said in a statement.

Bangladesh's young, tech-savvy generation forms a substantial demographic, many of whom already utilise Pathao's services extensively. Despite their potential, this demographic has remained underserved by the traditional financial sector, according to Pathao.

While many are eligible for and require access to credit, traditional banks struggle to evaluate their...