Trust Bank Ltd is planning to proceed 'slow and steady' after acquiring 100 per cent ownership of its subsidiary, Trust Axiata Digital Limited, a mobile financial service established by the bank in collaboration with Malaysia-based Axiata Digital Services Sdn Bhd in 2020.
Recently, Trust Bank Limited (TBL) decided to purchase 22.1 million ordinary shares of Trust Axiata Digital Ltd from Axiata Digital Services Sdn Bhd at Tk 10 per share, according to a disclosure on the Dhaka Stock Exchange.
"The process of purchasing 49 per cent share of tap [Trust Axiata Pay] is almost complete, Trust Bank now owns 100 per cent shares of the MFS," TBL Managing Director and Chief Executive Officer Humaira Azam told The Financial Express.
Of the shares, some 22,049,990 were acquired in the name of TBL, while 10 shares were registered in the name of its Managing Director and Chief Executive Officer Humaira Azam.
Regarding leaving the Bangladesh market, Head of Corporate Communications of Axiata Sujartha Kumar said Axiata continuously evaluates its portfolio of businesses.
"On Financial Services, our focus is shifting towards South East Asian markets," he said in an email responding to FE queries on the matter.
Axiata Digital holds a strong presence in East and Southeast Asian markets, including Cambodia, Thailand, Sri Lanka, Malaysia, Singapore and Indonesia.
Sujartha Kumar said their priority in Bangladesh will remain in the mobile handset business, infrastructure with EDOTCO and digital advertising.
"We will continue to foster partnerships with financial services companies to promote and support the growth of digitalisation and financial inclusion across the country," he affirmed.
He added that the evolution of FinTech companies has played a crucial role in Bangladesh's digital transformation and will further advance its 'Smart Bangladesh' initiative.
"Axiata, through its subsidiary, will remain committed to delivering this vision," he said, adding that they will continue collaborations with institutions like Trust Bank.
Mobile wallet tap was jointly ventured with 'Trust Bank Limited, Bangladesh' and 'Axiata Digital Services Sdn Bhd, Malaysia' and was formed under the 'Bangladesh Mobile Financial Services Regulations, 2018'.
Having jointly incorporated as a private limited company with a 51 per cent share owned by Trust Bank Limited and a 49 per cent share owned by Axiata Digital Services Sdn Bhd, both companies signed the joint venture agreement to operate mobile financial services (MFS) and payment service provider (PSP) operations in Bangladesh.
However, tap couldn't make any significant progress in the last three years following its launch in 2020.
Trust Bank CEO Humaira Azam said they are not going for aggressive marketing like other players in the market. "We used to go 'slow and steady' and this policy will remain the same in the future as well," she said.
As Axiata is no longer associated with the MFS, she hinted that the name of MFS - Trust Axiata Pay or tap - will be changed in the future.
Beyond basic access and utilisation of mobile financial services, she said their MFS aspires to revolutionise customer lifestyles by bringing innovation to the sophisticated digital payment movement system.
Trust Bank Limited has decided to inject Tk91 million of fresh funds into tap.
The purpose of this investment is to strengthen the MFS's capital base and expand its business, according to the bank's disclosure on the Dhaka Stock Exchange (DSE) website last year.
The bank also disclosed that its board decided to issue a Tk4 billion subordinate bond to further strengthen the bank's capital base.
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