The Pakistani startup TAG Innovation Pvt. is all set to begin its operations in June as the country’s first digital bank. The CEO Talal Gondal stated that the Islamabad-based fintech will commence its operations with a limited number of customers and will begin commercial activities in 2-3 months.

Just a few days back, TAG was able to raise $5.5 million in a pre-seed round led by venture capital firms Capital and Liberty City Ventures. The investment is considered to be the largest pre-seed ever in the Middle East, North Africa, and Pakistan. Additionally, it has received in-principal approval from the State Bank of Pakistan.

TAG intends to create the first digital retail bank of Pakistan, which enables the users to open bank accounts via digital onboarding and allows peer-to-peer transfers to users on TAG or any other bank account in Pakistan. Users will be able to pay their utility bills and recharge their mobile credit. Not only that but users will also be given Visa powered debit card which will allow them to do cash withdrawals or online/offline payments at supported vendors.

According to World Bank’s data, Pakistan consist of the third-largest unbanked adult population globally. With about 70% of the adult population without any bank accounts, this initiative by TAG is considered to be a noteworthy achievement. The startup seeks to make the process simple which will require just a copy of the national identification card and a photograph, and thus the account will be opened with three minutes.

In April, the State Bank of Pakistan’s governor Reza Baqir appreciated the efforts being made to enhance the availability of digital banking services within the country. The State Bank of Pakistan has granted the startup with the provisional electronic money license which permits it to provide basic banking services such as online shopping, cash transfer, and debit card.

With its diverse working team of 30 employees which includes former engineers and designers of Google, N26, Twilio, and other leading technology companies, TAG Innovations is determined to provide state-of-the-art digital banking services while complying with the regulatory requirements.