The National Bank of Georgia has issued a digital banking license to Hash Bank, according to a statement posted on a government website.
The Bank said that by developing a digital bank model, it will promote innovative business models and a “convenient, fast, and affordable digital financial ecosystem” for its customers.
Hash Bank is expected to operate in “test mode” for seven months after receiving the banking activity license, with limited authorizations.
The Bank stated:
“Granting of the authority to carry out banking activities in the full environment will be done step by step following fulfillment of license requirements issued by the National Bank.”
There will now be 16 authorized banks in the country.
On the same day the Bank revealed the digital bank, the Vice Speaker of the Georgian Parliament, Archil Talakvadze, said the European Commission had given Georgia the “green light” on its application to be granted the European Union candidate status.
Digital banks are quickly becoming the norm around the world as both regulated digital banks and establishment banks move away from physical locations to providing services in an App-based environment that can lower costs while improving the services offered.