TAG Innovation is set to become Pakistan’s first digital bank when it starts operations this month in the world’s fifth most populous nation where 70 per cent of adults don’t have a bank account.
The Islamabad-based FinTech start-up will launch with a limited number of customers and start commercial operations in two to three months, chief executive Talal Gondal said in an interview. It aims to have millions of customers in the first few years, he said.
The company has raised about $5.5 million in pre-seed funding, making it one of five biggest deals in the Middle East, Africa and Pakistan region, according to data from Crunchbase. The funding round was led by Quiet Capital Management, Liberty City Ventures and Fatima Gobi Ventures. TAG also received strategic angel investments from general partners of Andreessen Horowitz, Khosla Ventures, Canaan Partners and Mercury’s Immad Akhund.
TAG joins other digital payment start-ups in raising funds as digital banks take off in emerging markets where millions lack access to banking services.
Razorpay, an Indian start-up that facilitates digital payments, said in April it was raising $160m, while Egyptian digital banking app Telda raised $5m last month.
Pakistan has the third largest unbanked adult population globally with about 100 million adults without a bank account, according to the World Bank. About 70 per cent of the population doesn’t have a bank account, according to Raza Jafri, head of equities at Intermarket Securities. Potential customers complain about the lengthy documentation process and multiple branch visits needed to open an account.
“In Pakistan, the system is broken,” said Mr Gondal. “Some banks don’t even have a banking app. It’s that bad.”
TAG plans to make the process simple with potential customers needing just a copy of their national identification card and a selfie. Accounts should be opened within three minutes, Mr Gondal said.
The start-up received a provisional electronic money institution licence from the central bank last year that allows basic banking services such as cash transfer, online shopping and a debit card.
Pakistan’s central bank governor Reza Baqir said in April that he welcomes digital banks in the country, including full-fledged digital banks and smaller ones to constructively shape the industry.
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Investment raised: $4 million
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- Riders must be 14-years-old or over
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- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
The%20specs
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Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
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ARSENAL IN 1977
Feb 05 Arsenal 0-0 Sunderland
Feb 12 Manchester City 1-0 Arsenal
Feb 15 Middlesbrough 3-0 Arsenal
Feb 19 Arsenal 2-3 West Ham
Feb 26 Middlesbrough 4-1 Arsenal (FA Cup)
Mar 01 Everton 2-1 Arsenal
Mar 05 Arsenal 1-4 ipswich
March 08 Arsenal 1-2 West Brom
Mar 12 QPR 2-1 Arsenal
Mar 23 Stoke 1-1 Arsenal
Apr 02 Arsenal 3-0 Leicester
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Brief scores:
Toss: Pakhtunkhwa Zalmi, chose to field
Environment Agency: 193-3 (20 ov)
Ikhlaq 76 not out, Khaliya 58, Ahsan 55
Pakhtunkhwa Zalmi: 194-2 (18.3 ov)
Afridi 95 not out, Sajid 55, Rizwan 36 not out
Result: Pakhtunkhwa won by 8 wickets
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- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
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Three stars
